Brand repositioning

Definition

Brand repositioning is the process of changing the place a brand occupies in a consumer's mind relative to competing brands. This strategy often aims to alter how consumers perceive a brand, whether by emphasizing different attributes, targeting new customer segments, or adjusting marketing messages. Successful brand repositioning can enhance market relevance and differentiate the brand from competitors.

5 Must Know Facts For Your Next Test

1. Brand repositioning may involve modifying product features, changing the target audience, or altering brand messaging to resonate with new consumer needs.
2. Successful repositioning requires thorough market research to understand consumer perceptions and competitive dynamics.
3. Examples of brand repositioning can be seen in companies like Old Spice, which shifted its image from an outdated brand to one that appeals to younger consumers.
4. Repositioning can carry risks; if not executed properly, it may confuse existing customers or dilute brand equity.
5. Effective repositioning often includes an integrated marketing strategy that utilizes various channels to communicate the new brand identity.

Review Questions

• How does brand repositioning impact customer perception and loyalty?
  • Brand repositioning significantly impacts customer perception by redefining how consumers view a brand in relation to its competitors. This change can lead to increased loyalty if consumers feel that the new positioning aligns better with their values and needs. It’s essential for brands to effectively communicate this new identity, as misalignment can result in confusion and a potential loss of existing customers.
• Discuss the role of market research in the brand repositioning process and its importance for success.
  • Market research plays a critical role in brand repositioning as it helps companies understand current consumer perceptions, preferences, and competitive landscapes. By gathering insights into what drives consumer behavior and how the brand is viewed in the market, companies can make informed decisions about necessary changes. This understanding allows for strategic adjustments in messaging and target markets that can enhance the effectiveness of the repositioning effort.
• Evaluate how successful examples of brand repositioning can serve as models for other brands seeking change.
  • Successful examples of brand repositioning provide valuable lessons for other brands aiming to adapt to changing market conditions. By analyzing cases like Apple’s shift from personal computers to lifestyle technology or Nike’s emphasis on social issues, other brands can learn about effective strategies such as understanding consumer trends, leveraging emotional branding, and utilizing targeted marketing campaigns. These models demonstrate that successful repositioning not only involves a clear understanding of the current market but also requires creativity in presenting a renewed identity that resonates with consumers.

Related terms

Brand Equity: The value a brand adds to a product or service, based on consumer perception, recognition, and loyalty.

Target Market: A specific group of consumers at whom a company aims its products and marketing efforts.

Market Segmentation: The process of dividing a broad consumer or business market into sub-groups based on shared characteristics.