Has the excitement left your brand? Are sales trending down? It could be time to try a fresh approach. Change is often said to be the only constant—not in vain. New structures and houses appear on the streets and eventually become homes; children grow up and mature into adults, and wines mature and develop a richer flavour. Same, but in a slightly different dynamic, companies evolve, change, grow, and mature.
Building a company or a business brand is one thing. It’s another thing to ensure that your brand consistently captures the attention of your desired audience. Companies must constantly seek new ways to stay relevant and competitive in today’s fast-paced business world. And one of the effective strategies for achieving this is through brand repositioning.
Keep reading as I will key you in on everything you need to know about brand repositioning and 5 successful brand repositioning examples. Come with me!
Key Points
- Brand repositioning is when a company or organization changes its strategic focus to better align with the needs and wants of its target audience.
- Repositioning is crucial for staying relevant and competitive in a fast-paced market.
- Some reasons you should consider brand repositioning include targeting a new audience, competitors consistently outperforming you, significant market changes, releasing new or adapted products, and attracting younger generations.
- Some critical challenges and risks of brand repositioning include high costs, alienating existing customers, inconsistent brand image, and impact on brand equity.
What Is Brand Repositioning?
Simply put, brand repositioning is when a company or organization changes its strategic focus to better align with the needs and wants of its target audience. Changes to the marketing strategy, such as product, price, location, or promotion, are frequently made as part of this process.
Repositioning is often carried out when a business experiences a drop in sales and realizes it is time to adjust and grow. This is essential to keeping the brand alive and remaining on top of customer requirements and desires.
When Should You Consider a Brand Repositioning Strategy?
In business, repositioning a brand is inevitable and occurs for various reasons. The markets are continually shifting, new trends are always emerging, and customer demands and preferences are constantly changing.
Sometimes, the need to reposition isn’t entirely external. It becomes necessary when a product or service doesn’t perform as well as you envisaged, a product is of poor quality, or if you targeted the wrong audience.
Here are some reasons you should consider brand repositioning:
- Targeting a New Audience: Are you looking to expand into new markets or introduce a new product for a different target market? You’ll need to consider how these new audiences will respond to your current brand and adjust your messaging accordingly.
- Competitors consistently outperform you: Brand repositioning is an excellent way to redefine your unique value proposition and stay ahead of companies with a competitive advantage.
- Significant market changes: Consolidate your brand position when new competitors emerge or new tech and trends shake the market.
- Releasing new or adapted products: Ensure your brand personality and message align with your latest offerings.
- Attract younger generations: To stay relevant, you must appeal to young and future consumers. This might mean repositioning your brand and adapting marketing efforts.
Is Rebranding the Same as Repositioning?
Brand repositioning is a broader strategic process that involves changing the company’s overall market position. At the same time, rebranding is a more specific effort to change the company’s brand identity and perception in the marketplace. They differ in their focus and scope:
- Repositioning involves changing the company’s overall strategic direction and market position, while rebranding focuses on changing its brand identity, including its name, logo, messaging, and visual design.
- Unlike rebranding, repositioning may involve changes to the company’s products or services, target market, pricing strategy, distribution channels, or competitive position to create a stronger market position and improve profitability.
- Rebranding, on the other hand, is typically a more focused effort to change how the company is perceived by its target audience. This may involve changing the company’s name, logo, colour scheme, messaging, or visual design to create a new brand identity that is more relevant, appealing, and memorable to customers. Rebranding may also involve a new marketing campaign to promote the new brand identity and increase brand awareness and loyalty.
Now that we have a basic understanding of brand repositioning and its difference from rebranding, the next question that should come to your mind is how you can reposition your brand. Keep reading to find out.
How to Successfully Reposition a Brand?
Brand repositioning is a big job, but ensuring your brand’s longevity and success is well worth it. Here, I outline six critical steps to achieving a successful new brand position and the tangible benefits you can see.
#1. Define Your Desired Positioning
The first and perhaps most crucial step is to have a brand vision that everyone buys into and develop a road map for moving from brand perception X to brand perception Y.
Determine what makes your brand distinctive and differentiates it from your competitors. In the case of automotive brands, this could be based on factors such as exterior style, superior quality, performance characteristics, interior craftsmanship, innovation, or personalized services.
Align your brand identity, such as logo, colours, typography, and visual style, to reflect your desired brand positioning while staying true to your brand’s values and personality.
#2. Conduct Market and Audience Research
You’ve identified your desired positioning, but where do you go? One of the most fatal actions a company can take is creating a marketing strategy based on assumptions.
Market research is vital to identifying the current state of your market and repositioning it tangibly. Adequate research will give you insight into new opportunities, your target market’s needs and preferences, and the state of your competitors.
Many market research tools and methods help you conduct surveys, interviews, and behavioural research to make data-driven decisions.
#3. Evaluate Current Brand Positioning
The third step is to understand your current brand positioning. This will help you know precisely where you are starting from and how your target audience differs from the new one.
A brand deep dive will give you insights into your new target audience, their purchasing behaviour, and their perception of your brand today. It will also help you understand the competitive landscape and identify gaps or opportunities that can be leveraged for your desired positioning.
If the repositioning barriers look impossible, you may consider creating and launching a different brand, as many mainstream car companies have done when faced with the challenge of attracting premium car buyers. Examples include Toyota with Lexus, Seat with Cupra, Nissan with Infiniti, and Hyundai with Genesis.
#4. Adjust Pricing Strategy
The fourth step is to develop a pricing strategy that reflects your desired brand positioning.
Consider your value proposition, competitive market pricing, affordability, transparency, and cost structure. Many premium car brands have made their models more accessible through creative pricing options such as monthly subscriptions that offer an all-in-one ownership/rental model.
You need to ask if you are simply repositioning for scale or if you are looking to premium your offer and increase margins from the perspective of both your new audience and your old audience (if you want to bring them with you).
#5. Refine Brand Messaging and Channels
Craft compelling brand messaging that conveys your brand attributes and resonates with your target audience. These should highlight the unique benefits and value customers can expect from your brand and emphasize critical differentiators to help your brand stand out.
Review and refine your marketing and communication channels to align with the new brand positioning. This may involve changing your product, website, packaging, materials, and visuals and using new advertising platforms or media outlets to reach and engage with your target audience.
Download our Brand Messaging Framework template below to help structure and refine your brand messaging to align with your new positioning. This template includes sections for critical messages, value propositions, and brand personality traits, making communicating your brand’s new direction easier.
Lamphills Brand Messaging Framework Template
#6. Analyze the Results
The work is far from over after you’ve launched your new brand strategy. You need to monitor the successes and failures of your brand repositioning and make adjustments as necessary.
Listen to your customers, ask for feedback, and understand how your new positioning has landed. You can track sales and brand awareness metrics and gather customer feedback at every implementation stage.
Continuously analyze the results of your repositioning strategies using brand tracking and consumer insights studies to ensure that you’re on the right track (and make adjustments to ensure that you remain on track and take advantage of new opportunities).
Read also: How To Measure Brand Awareness: KPIs To Look Out For
5 Successful Brand Repositioning Examples
Repositioning success stories is a big motivator to pull the trigger and enhance the brand’s fortunes.
Here are some of the most successful brand repositioning examples.
#1. Google
Google is a shining example of expanding a business model in a new and emerging market. They began as one of the first global search engines. While a transformative invention in 1998, Google was committed to maintaining a free search engine, leaving them without a revenue stream.
After experimenting with a few revenue streams, they launched AdWords in 2003—and digital marketing was created. The second new invention from Google!
Since then, Google has launched various revenue-generating products. However, it has also had some failed revenue streams, such as its attempt to enter social media networking with Google+.
To date, Google’s AdWords has generated over $21 billion. Other revenue streams include YouTube and Google Workspace tools. While many of Google’s technology and tools are free, such as personal email, Google Maps, and Google My Business, all products are designed to create a cohesive experience that ultimately generates revenue.
#2. Gucci
Gucci was a successful brand in the mid-2010s, but its audience was ageing. The controversial, provocative, and bold aesthetic that made Gucci famous wasn’t appealing to Millennials because it didn’t speak to their cultural moment.
Marco Bizarre took over as CEO in 2015 (along with new Creative Director Alessandro Michele) and introduced an ambitious brand repositioning strategy. Gucci would retain its Italian roots and extravagance but also become more contemporary. But what would make Gucci especially attractive to younger generations?
Gucci took steps to emphasize a progressive mindset, such as:
- A new focus on Instagram-style communication
- A polished-up logo that took centre stage on all products
- A welcoming and empowering stance on gender fluidity
These changes led Gucci into a highly lucrative period over the next five years (their best so far). Financially and socially, the above examples of brand repositioning strategy bore fruit. Fashion influencers have been enthralled by Gucci’s transformation from glossy and seductive to quirky and activist (and just as bold!).
#3. Spotify
Spotify is an example of COVID-related brand repositioning. It was doing well as a free music streaming service that allowed advertisers to play ads in between songs. It was like a radio, but users curated their playlists and selected the music they wanted to hear. Users could access ad-free streaming with a monthly subscription, starting at $9.99 monthly. Subscribers also had access to offline streaming and on-demand playback.
Things went well until COVID hit, and Spotify started losing subscribers and advertisers. They continued streaming music but repositioned themselves as a music and podcast platform. This created new revenue streams by attracting a new listening demographic and charging a subscription to podcasters for uploading their podcasts. They also created curated playlists and Spotify® Originals to attract new listeners.
The timing was ideal, as the demand for quality podcasts skyrocketed during the pandemic.
#4. Burberry
Burberry is a high-end British fashion brand. What started as a celebrated fashion brand worldwide became one at risk of destruction due to a declining brand image. They spotted a drastic decrease in revenue due to brand perception and image problems.
In the early 2000s, Burberry implemented a brand repositioning strategy to overhaul its product and messaging. With a new creative director, they modified their designs and pricing and cut back their signature checked patterns in favour of high-quality material and vibrant colours.
The brand revamped marketing campaigns and enlisted supermodel Kate Moss to reiterate its new visual identity and upscale image.
Burberry is now considered a luxury fashion brand for celebrities and sits atop the crème de la crème of British apparel.
#5. Old Spice
Once upon a time, Old Spice was 70, and so were its biggest fans. The new brand “Axe” had disrupted the men’s body wash market with sleek styling and fresh, energetic advertising. Meanwhile, in the public mindset, Old Spice was just… old.
Younger consumers barely noticed Old Spice before NFL player Isaiah Mustafa told us that “the tickets are now diamonds” and “anything is possible when your man smells like Old Spice and not a lady (I’m on a horse).” If you missed it in 2010, here’s the commercial that relaunched Old Spice’s ship:
Hundreds of commercials and social videos later—including a hilarious real-time feud with Fabio over who would be the next brand spokesperson—Old Spice was once again a red-hot category leader. The ad campaign boosted sales of their body wash by 27% in only six months.
Business Insider reported a year after the launch of the “Smell Like a Man, Man” campaign that Old Spice had taught us all a valuable lesson: “A clever ad + smart use of social media can produce a fresh identity, even for a brand that many associate with their grandfather’s deodorant.”
What Are the Disadvantages of Repositioning a Brand?
Repositioning a brand can offer many benefits, but it also comes with several potential disadvantages. Here are some of the critical challenges and risks:
#1. Brand Repositioning Can Be Expensive
A brand’s position in the market is shaped by the brand’s perception, which ultimately stems from the brand experience.
Throughout a given brand, there may be upwards of 100 touchpoints, which can include:
- Website
- Social Channels
- Physical Store
- Printed Collateral
- Packaging
- Traditional Ads
- Digital Ads
- Vehicle Fleets
- Distribution Channels
This cost only represents the visual and verbal adjustment on the brand’s front lines, though there is also lost investment in any equity built up over time.
#2. Risk of Alienating Existing Customers
Loss of Loyalty: Long-time customers may feel disconnected or betrayed by the brand’s new direction, losing loyalty and reduced customer retention.
Confusion: If the repositioning is not communicated effectively, existing customers might be confused about the brand’s identity, values, or offerings, leading to a potential drop in sales.
#3. Inconsistent Brand Image
Message Dilution: If not executed cohesively across all channels, repositioning can dilute the brand’s core message, leading to a fragmented image.
Brand Identity Confusion: If the new positioning is too far removed from the original brand identity, it can create confusion in the market, making it difficult for consumers to relate to the brand.
#4. Impact on Brand Equity
Erosion of Brand Equity: If the repositioning is perceived negatively or fails to align with the brand’s established reputation, it can erode brand equity, diminishing the brand’s value in the eyes of consumers.
Negative Publicity: Poorly executed repositioning efforts can lead to negative media coverage, damaging the brand’s reputation and trustworthiness.
What Tools Can Help Me During Brand Repositioning?
There are two vital tools to assist your brand repositioning strategy.
- Customer surveys: Use customer surveys to gather feedback and data for market research. Consistently track your brand to understand perception and awareness at all stages of repositioning.
- Market research tools: Many solutions are available to conduct effective market research, automate processes, and analyze results.
Bottom Line
In conclusion, brand repositioning is complex and time-consuming, but many companies must take a different course. Remembering the above examples of successful brand repositioning, you shouldn’t be afraid to change.
Adapting to the current situation is a natural step in developing your business. So, with a new offer or a redefined target group, something new will help your brand grow.
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- How I Mastered Brand Communications: Strategies for Clear and Effective Messaging
- Building a Positioning Map: A Guide for Your Business
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