Product Repositioning Means Changing The Product's Position

Product repositioning is a strategic marketing maneuver that involves altering the perception of a product in the minds of consumers. It's about changing the "position" a product occupies in the market, relative to competing products. This process is often necessary to revitalize a brand, adapt to changing market dynamics, or target new customer segments. Effectively repositioning a product can breathe new life into a struggling brand, but it requires careful planning, thorough market research, and a deep understanding of consumer behavior.

Why Reposition a Product?

Several factors can trigger the need for product repositioning. Understanding these catalysts is crucial for determining if repositioning is the right strategy.

Changing Consumer Preferences: Consumer tastes and preferences are constantly evolving. What was once desirable may become outdated or irrelevant. Repositioning allows a product to adapt to these shifts and remain appealing.
Increased Competition: As new competitors enter the market, a product's unique selling proposition (USP) may become diluted. Repositioning can help a product stand out and regain a competitive edge.
Market Saturation: When a market becomes saturated, growth opportunities diminish. Repositioning can open up new markets or customer segments, leading to increased sales and revenue.
Declining Sales: A consistent decline in sales is a clear indicator that a product is losing its appeal. Repositioning can revitalize a product and attract new customers.
New Technologies: Technological advancements can render existing products obsolete. Repositioning can help a product incorporate new technologies and stay relevant.
Changing Demographics: Shifts in population demographics can alter the target market for a product. Repositioning can help a product appeal to new demographic groups.
Brand Image Problems: Negative publicity or a tarnished brand image can damage a product's reputation. Repositioning can help rebuild trust and improve perception.
Missed Opportunities: Sometimes, a product is not reaching its full potential due to ineffective marketing or targeting. Repositioning can unlock these missed opportunities.

Types of Product Repositioning Strategies

There are several distinct approaches to product repositioning, each suited to different circumstances and objectives.

Image Repositioning: This involves changing the perception of a product without altering its physical attributes. It focuses on modifying the brand's image and how consumers perceive it.
- Example: A luxury car brand might reposition itself as more environmentally friendly to appeal to a growing segment of eco-conscious consumers, without changing the car's design or performance.
Product Repositioning: This strategy involves making actual changes to the product itself, such as adding new features, improving quality, or modifying the design.
- Example: A food manufacturer might reformulate a product to reduce its sugar content, repositioning it as a healthier option for health-conscious consumers.
Tangible Repositioning: This combines elements of both image and product repositioning. It involves making both physical changes to the product and altering its marketing message.
- Example: A clothing brand might introduce a new line of sustainable clothing made from recycled materials and simultaneously launch a marketing campaign emphasizing its commitment to environmental responsibility.
Competitive Repositioning: This focuses on changing how consumers perceive a product relative to its competitors. It often involves highlighting a product's unique advantages and differentiating it from the competition.
- Example: A soft drink brand might launch a campaign emphasizing its use of natural ingredients, contrasting it with competitors that use artificial sweeteners and flavors.
Target Market Repositioning: This involves shifting the focus to a new target market. It might involve adapting the product or marketing message to appeal to a different demographic group.
- Example: A product initially targeted at young adults might be repositioned to appeal to older consumers by emphasizing its ease of use and reliability.

The Product Repositioning Process: A Step-by-Step Guide

Repositioning a product is a complex process that requires careful planning and execution. Here's a step-by-step guide to help you navigate the process:

Step 1: Conduct Thorough Market Research

Understand Your Current Position: Begin by assessing your product's current position in the market. How do consumers perceive your product compared to the competition? What are its strengths and weaknesses? Use surveys, focus groups, and market analysis to gather data.
Identify Opportunities: Look for unmet needs or underserved segments in the market. Are there any emerging trends or technologies that you can capitalize on? Identify potential opportunities for repositioning your product.
Analyze Your Competitors: Understand your competitors' strengths and weaknesses. How are they positioning their products? What are their marketing strategies? Identify areas where you can differentiate your product and gain a competitive advantage.

Step 2: Define Your Repositioning Objectives

Set Clear Goals: What do you hope to achieve with your repositioning strategy? Do you want to increase sales, attract new customers, improve brand image, or enter a new market? Set specific, measurable, achievable, relevant, and time-bound (SMART) goals.
Identify Your Target Audience: Who are you trying to reach with your repositioning strategy? Define your target audience based on demographics, psychographics, and buying behavior. Understand their needs, wants, and preferences.
Determine Your Desired Position: What position do you want your product to occupy in the minds of consumers? How do you want them to perceive your product compared to the competition? Develop a clear and concise positioning statement that articulates your desired position.

Step 3: Develop Your Repositioning Strategy

Choose the Right Approach: Based on your research and objectives, select the most appropriate repositioning strategy. Will you focus on image, product, tangible, competitive, or target market repositioning?
Develop Your Marketing Mix: Adapt your marketing mix (product, price, place, promotion) to reflect your repositioning strategy. Make changes to the product itself, adjust your pricing strategy, modify your distribution channels, and develop a new marketing campaign.
Craft Your Message: Develop a compelling marketing message that communicates your new positioning to your target audience. Emphasize the benefits of your product and differentiate it from the competition. Use clear, concise, and persuasive language.

Step 4: Implement Your Repositioning Plan

Roll Out Your Campaign: Launch your marketing campaign across multiple channels, including advertising, public relations, social media, and content marketing. Ensure that your message is consistent across all channels.
Train Your Staff: Ensure that your employees understand your repositioning strategy and are equipped to communicate it effectively to customers. Provide training on product knowledge, customer service, and sales techniques.
Monitor Your Progress: Track your progress and measure your results. Use key performance indicators (KPIs) to assess the effectiveness of your repositioning strategy. Monitor sales, market share, brand awareness, and customer satisfaction.

Step 5: Evaluate and Adjust

Analyze Your Results: Analyze your results and identify areas for improvement. Did you achieve your objectives? What worked well? What didn't work?
Make Adjustments: Based on your analysis, make adjustments to your repositioning strategy. Refine your marketing message, modify your product, or adjust your pricing strategy.
Stay Agile: Be prepared to adapt your repositioning strategy as needed. The market is constantly changing, so it's important to remain flexible and responsive.

Examples of Successful Product Repositioning

Numerous companies have successfully repositioned their products, demonstrating the power of this strategic maneuver. Here are a few notable examples:

Old Spice: Old Spice was once perceived as an outdated brand for older men. In the 2000s, Procter & Gamble successfully repositioned Old Spice as a hip and humorous brand for younger men, using a series of memorable advertising campaigns featuring Isaiah Mustafa. This repositioning revitalized the brand and significantly increased sales.
Dove: Dove initially focused on selling soap for sensitive skin. In the 2000s, Dove launched its "Real Beauty" campaign, which celebrated natural beauty and challenged conventional beauty standards. This repositioning resonated with women of all ages and helped Dove become a leading brand in the personal care industry.
Marlboro: Marlboro was originally marketed as a women's cigarette. However, in the 1950s, Philip Morris repositioned Marlboro as a masculine cigarette, using the iconic "Marlboro Man" advertising campaign. This repositioning was hugely successful, transforming Marlboro into one of the world's best-selling cigarette brands.
Nintendo: Nintendo was once known primarily for its family-friendly gaming consoles. However, with the launch of the Nintendo Switch, Nintendo successfully repositioned itself as a versatile gaming platform that appeals to both casual and hardcore gamers. This repositioning helped Nintendo expand its market share and attract new customers.
Lego: Lego faced declining sales in the early 2000s as digital entertainment became more popular. The company successfully repositioned itself by expanding into new product categories, such as movies, video games, and theme parks. This repositioning helped Lego diversify its revenue streams and remain relevant in the digital age.

Potential Challenges and Risks

While product repositioning can be a powerful tool, it's important to be aware of the potential challenges and risks:

Cannibalization: Repositioning a product can potentially cannibalize sales of existing products in your portfolio. This is especially true if the repositioned product targets a similar customer segment.
Confusion: If not executed properly, repositioning can confuse customers and damage brand loyalty. It's important to communicate your new positioning clearly and consistently.
Resistance: Customers may resist the new positioning, especially if they have strong associations with the old brand image. It's important to address customer concerns and build trust.
Cost: Repositioning can be expensive, requiring significant investment in market research, product development, and marketing.
Failure: There is always a risk that your repositioning strategy will fail to achieve its objectives. It's important to have a contingency plan in place in case things don't go as planned.

Ethical Considerations in Product Repositioning

Product repositioning, like any marketing strategy, should be conducted ethically and responsibly. Here are some ethical considerations to keep in mind:

Honesty and Transparency: Be honest and transparent in your marketing communications. Avoid making misleading or deceptive claims about your product.
Respect for Consumers: Respect consumer privacy and data. Obtain consent before collecting and using personal information.
Social Responsibility: Consider the social and environmental impact of your product and marketing activities. Promote sustainable practices and avoid harmful stereotypes.
Fair Competition: Compete fairly and avoid engaging in anti-competitive practices.
Cultural Sensitivity: Be sensitive to cultural differences and avoid making offensive or insensitive statements.

Measuring the Success of Product Repositioning

Measuring the success of product repositioning is crucial for determining whether the strategy has been effective and for making adjustments as needed. Here are some key metrics to track:

Sales: Track sales volume, revenue, and market share. Did sales increase after the repositioning? Did you gain market share from competitors?
Brand Awareness: Measure brand awareness and recognition. Are more people aware of your product? Do they recognize your brand?
Customer Perception: Assess customer perception of your product. Do customers perceive your product differently after the repositioning? Do they view it more favorably?
Customer Satisfaction: Measure customer satisfaction and loyalty. Are customers more satisfied with your product? Are they more likely to recommend it to others?
Website Traffic: Track website traffic and engagement. Are more people visiting your website? Are they spending more time on your site?
Social Media Engagement: Monitor social media engagement. Are people talking about your product on social media? Are they sharing your content?
Return on Investment (ROI): Calculate the return on investment for your repositioning strategy. Did the benefits of the repositioning outweigh the costs?

Conclusion

Product repositioning is a powerful marketing strategy that can revitalize a brand, adapt to changing market dynamics, and target new customer segments. By understanding the reasons for repositioning, choosing the right approach, and following a well-defined process, businesses can successfully reposition their products and achieve their marketing objectives. However, it's crucial to be aware of the potential challenges and risks, and to conduct repositioning ethically and responsibly. By carefully measuring the success of your repositioning strategy, you can ensure that it is delivering the desired results and make adjustments as needed to stay ahead of the competition.