Repositioning a Brand: When and How to Do It Right

In the dynamic and ever-evolving business landscape, a brand’s positioning is critical to its success. Brand positioning is how a company differentiates itself in the minds of its target audience. It involves creating a unique space in the market that aligns with the brand’s values, offerings, and customer perceptions. However, there are times when a company needs to revisit and reposition its brand to stay relevant, competitive, and aligned with its business goals. This article explores when there is a need to reposition a brand and the steps companies should take to do it effectively.

When Is There a Need to Reposition a Brand?

Brand repositioning is a significant strategic decision that shouldn’t be taken lightly. It involves shifting the brand’s identity, messaging, and market focus. Here are some key scenarios where repositioning might be necessary:

1. Market Changes and Evolving Consumer Preferences: Consumer preferences and market dynamics are constantly changing. A brand that once resonated well with its target audience may find itself out of sync with current trends. For instance, the rise of health-conscious consumers has forced many food and beverage companies to reposition their brands to emphasize healthier options. If a company fails to adapt to these changes, it risks becoming irrelevant.
2. Increased Competition: When new competitors enter the market or existing competitors revamp their strategies, a company may find its market share shrinking. Repositioning can help the brand stand out in a crowded market by highlighting unique value propositions or appealing to a new segment of customers.
3. Negative Perceptions and Brand Image: A brand’s reputation can be tarnished due to various reasons, such as product recalls, poor customer service, or controversial incidents. In such cases, repositioning can help rebuild the brand’s image and regain customer trust. For example, after a series of safety concerns, Toyota successfully repositioned itself by emphasizing quality and reliability.
4. Outdated Brand Identity: As a company grows and expands its offerings, its original brand identity may no longer reflect its current mission, values, or market position. Repositioning allows the brand to align its identity with its evolving business goals. For example, Apple’s transition from a computer company to a lifestyle brand required a significant repositioning effort.
5. Expanding or Changing Target Audience: Companies often start with a specific target audience but may later decide to expand into new demographics or markets. Repositioning is essential to appeal to these new audiences without alienating the existing customer base. For example, Old Spice successfully repositioned itself from a brand associated with older men to one that appeals to younger generations through a humorous and modern approach.
6. Product or Service Innovation: When a company introduces new products, services, or technologies, its existing brand positioning may no longer be relevant. Repositioning helps communicate the brand’s new offerings and ensures that the brand stays current and competitive. For instance, Netflix’s transition from a DVD rental service to a leading streaming platform required a comprehensive repositioning strategy.
7. Mergers and Acquisitions: When two companies merge or one company acquires another, a brand repositioning may be necessary to create a cohesive brand identity that reflects the combined entity’s strengths and values. This was evident when United Airlines and Continental Airlines merged, resulting in a rebranded United that incorporated elements from both airlines.

Steps for Effective Brand Repositioning

Repositioning a brand is a complex process that requires careful planning and execution. Here are the steps a company should take to successfully reposition its brand:

1. Conduct a Comprehensive Brand Audit: The first step in any repositioning effort is to conduct a thorough brand audit. This involves analyzing the brand’s current positioning, strengths, weaknesses, opportunities, and threats (SWOT analysis). The audit should also assess customer perceptions, competitor positioning, market trends, and internal factors such as company culture and values. By understanding the brand’s current state, a company can identify the gaps and opportunities for repositioning.
2. Define Clear Objectives: Before embarking on a repositioning strategy, it’s essential to define clear and measurable objectives. What does the company hope to achieve through repositioning? Objectives may include increasing market share, reaching new customer segments, improving brand perception, or aligning the brand with new business goals. Clear objectives will guide the repositioning process and help measure its success.
3. Identify and Understand the Target Audience: A successful repositioning strategy hinges on a deep understanding of the target audience. This includes their needs, preferences, pain points, and motivations. Companies should conduct market research, surveys, focus groups, and customer interviews to gather insights. Understanding the target audience allows the company to tailor its messaging, visual identity, and value propositions to resonate with the desired demographic.
4. Refine the Brand’s Value Proposition: A critical aspect of repositioning is refining the brand’s value proposition. The value proposition should clearly articulate what makes the brand unique and why customers should choose it over competitors. It should address the target audience’s needs and reflect the brand’s new positioning. For example, if a brand is repositioning itself as a premium offering, the value proposition should emphasize quality, exclusivity, and superior customer experience.
5. Revamp the Brand’s Visual Identity and Messaging: Repositioning often requires a fresh visual identity and updated messaging to reflect the brand’s new positioning. This may involve redesigning the logo, updating the color palette, typography, and imagery, and creating new marketing collateral. The messaging should be consistent across all touchpoints, including the website, social media, advertising, and packaging. It’s crucial that the new visual identity and messaging align with the brand’s value proposition and resonate with the target audience.
6. Communicate the Change Internally: Repositioning is not just an external effort; it requires buy-in and alignment from internal stakeholders. Companies should communicate the repositioning strategy to employees, partners, and other stakeholders to ensure everyone understands the brand’s new direction and their role in its success. This may involve training, workshops, and internal communications campaigns to build enthusiasm and commitment to the repositioned brand.
7. Launch a Strategic Marketing Campaign: A well-executed marketing campaign is essential to communicate the repositioned brand to the target audience. The campaign should be multi-faceted, leveraging various channels such as social media, digital advertising, public relations, influencer partnerships, and content marketing. The messaging should be consistent and reinforce the brand’s new positioning. Companies should also consider timing the launch to coincide with significant events, product releases, or industry trends to maximize impact.
8. Monitor and Measure the Impact: Repositioning is an ongoing process, and companies need to monitor its impact continuously. Key performance indicators (KPIs) such as brand awareness, customer sentiment, market share, and sales growth should be tracked to assess the effectiveness of the repositioning strategy. Companies should also gather feedback from customers, employees, and other stakeholders to identify areas for improvement. If necessary, adjustments can be made to fine-tune the brand’s positioning and ensure long-term success.
9. Stay Consistent and Authentic: One of the critical challenges of repositioning is maintaining consistency and authenticity. While the brand’s positioning may change, it’s essential to stay true to the brand’s core values and mission. Consistency across all brand touchpoints ensures that customers receive a coherent and unified brand experience. Authenticity is equally important, as customers are more likely to connect with a brand that is genuine and transparent.
10. Evaluate and Adapt: The business environment is constantly evolving, and so should a brand’s positioning. Companies should regularly evaluate their brand’s performance and market position to determine if further adjustments are necessary. Flexibility and adaptability are key to staying relevant in a competitive market. By staying attuned to market trends, customer needs, and industry developments, a company can proactively adapt its brand positioning to maintain its competitive edge.

Conclusion

Brand repositioning is a powerful tool for companies looking to stay relevant, competitive, and aligned with their business goals. Whether driven by market changes, evolving consumer preferences, increased competition, or internal shifts, repositioning requires a strategic and thoughtful approach. By conducting a comprehensive brand audit, defining clear objectives, understanding the target audience, refining the value proposition, and executing a well-planned marketing campaign, companies can successfully reposition their brand and achieve long-term success.

However, it’s essential to remember that repositioning is not a one-time effort. It requires ongoing monitoring, measurement, and adaptation to ensure that the brand continues to resonate with its target audience and maintain its competitive position. When done right, brand repositioning can unlock new opportunities, strengthen customer loyalty, and drive business growth in an ever-changing marketplace.