Brand repositioning

Definition

Brand repositioning is the strategic process of changing the identity or image of a brand in the minds of consumers. This often involves altering the brand's value proposition, target market, or overall messaging to better align with current consumer perceptions and market trends. The goal is to differentiate the brand from competitors and re-engage consumers who may have lost interest.

5 Must Know Facts For Your Next Test

1. Brand repositioning can be triggered by changes in consumer preferences, market trends, or competitive pressures that necessitate a shift in strategy.
2. Successful brand repositioning requires thorough market research to understand how consumers currently perceive the brand and what changes would resonate with them.
3. The process may involve updating visual identity elements like logos and packaging, as well as revising marketing communications and advertising strategies.
4. It can result in increased market share and improved customer engagement if executed effectively, but it also carries risks such as alienating existing customers.
5. Brands like Old Spice and Domino's have successfully repositioned themselves to appeal to younger audiences and improve their market relevance.

Review Questions

• How does brand repositioning influence consumer perceptions and behaviors?
  • Brand repositioning can significantly alter consumer perceptions by presenting a refreshed image or message that resonates more with current trends and values. When done effectively, it can reignite interest in a brand and attract new customers while potentially retaining existing ones. For example, by changing its branding strategy, a company can shift how consumers view its product quality or relevance in the market.
• What are some key strategies companies might use during the brand repositioning process?
  • During brand repositioning, companies may implement several strategies such as conducting comprehensive market research to identify shifts in consumer attitudes, revising their value propositions to highlight unique benefits, and updating marketing channels to reach target audiences effectively. They might also refresh visual elements like logos and packaging or adjust messaging in advertisements to better align with the new positioning goals. This multifaceted approach helps ensure that the repositioning resonates well with both current and potential consumers.
• Evaluate the potential risks and rewards associated with brand repositioning in a competitive marketplace.
  • Brand repositioning carries both risks and rewards. On one hand, successfully rebranding can lead to increased market share, enhanced customer loyalty, and improved sales by attracting new demographics. On the other hand, if the changes are too drastic or not aligned with consumer expectations, it can alienate existing customers and damage brand equity. Additionally, the costs involved in repositioning efforts—such as marketing campaigns and rebranding—may not yield immediate returns, making it crucial for brands to carefully consider their approach before initiating significant changes.

Related terms

brand equity: The value added to a product or service by having a well-known brand name, which can influence consumer behavior and perceptions.

target market: A specific group of consumers at which a company aims its products and services, often defined by demographics, interests, or behaviors.

brand loyalty: The tendency of consumers to consistently purchase one brand's products over others, often driven by positive experiences and emotional connections.