Repositioning a brand is not for the faint-hearted. By definition, repositioning means to change the image of (a company, product, etc.) to target a new or wider market. The risk of change can be high. If done poorly, any sales decline accelerates as a result of losing more of the existing customer base. But, done well, the results can be exciting.
There are four reasons why you would consider repositioning your brand:
- Expanding to a new or broader market. Attracting a new audience is about relevancy. Your market may have grown older (as we all do) and there is a need to migrate generations. There are new segments where your existing positioning simply doesn’t resonate. The big challenge is to capture new growth without losing existing customers unexpectedly.
- Significant gains can be made by switching your competitor’s customers. The key is to adapt to how the market (those who buy) see your category. Often it’s more about tweaking the positioning and strengthening the brand assets and engagement.
- Adapting to competitive forces – Competitors may have launched a product/service that’s just better than what your brand offers or, worse, will potentially make your product obsolete. It could also be that their branding campaign is superior to yours. In situations like this, brand repositioning might help your product find an alternative selling point versus your competitors.
- Market leaders benefit from category growth. New category customers will always preference the brands with the strongest presence. Smaller brands benefit from stealing (or borrowing) market share from others.
- Changes in attitudes – Be that from Government policies, political conditions or a raft of other factors; for example, the surge of environmental awareness due to climate change that has led to the green revolution.
- Attitude changes manifest slowly. So there is time to plan and evolve.
- Internal changes within your business – Changes in corporate priorities can influence your brand portfolio and the need to adopt a new position. Acquisition of other assets and products could also come into play.
There are two principles to follow: if it ain’t broke, don’t fix it, coupled with, do nothing and nothing will change. While this may seem obvious, the first step in making a change is to diagnose the real issues accurately. An effective diagnosis is always based on data and evidence – which comes from what those in the market (the people who buy) say and do.
Whatever the reason behind making a change, there are straightforward steps to evaluating the issues and formulating the plan to move the brand forward. Humans have a tremendous desire for predictability. We can use that to your advantage.
Positioning is just one part of a giant 3D marketing puzzle. Talk with us about your goals and how we can partner with you. AMBA partners with a range of clients across geographies and industries who trust us for insights and advice. Together we can help you create a true competitive advantage.
Brand Science and Strategy is at the core of the work AMBA does. Touch Hearts. Move Minds. Emotive triggers open eyes and rational minds. We connect both – repositioning brands (and all that entails) is one of the tools in our strategy toolkit. We’re based in Australia but connect with people everywhere – Find out more.