Brand Repositioning

What is re-positioning?

A company or product is new, and people have already formed judgments about it. In other words, the company or product already has an image, either good or bad or in between. Many companies are not aware of their exact image, but it is important if that image can be identified. If a company does not know where it is now, then that product or company is unlikely to get to where it wants to go.

Re-positioning brands

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As markets and customer needs evolve, brands can lose customers to new competitors.

In addition, brands can become diluted as product or service offerings become commodities. When a brand loses meaning and relevance to the target customer, a new brand promise should be defined so the brand can be repositioned.

Types of brand re-positioning

Brand Re-positioning Brand re-positioning is changing the positioning of a brand. A particular positioning statement may not work with a brand. Brand re-positioning is undertaken in order to increase a brand's competitive position and therefore increase sales volume by seizing market share from rival products.

When re-positioning, companies can change aspects of the product, change the brand’s target market, or both. There are four types of re-positioning options for developing a new product in the market. I. Image Re-positioning This option takes when both the product and the target market remain unchanged. The aim is to change the image of the product in its current target market. For example product, Adidas was seen as reliable but dull in the early 1990s. The company created an image of ‘street credibility’ in an attempt to reposition the brand to appeal to the customer in the sports shoe market.

During the 1990s, Tango, the Britvic soft drink, was transformed from a minor UK brand into a brand showing dynamic growth. This has been achieved by creating an anarchic image for the products through a major promotional re-launch that was aimed to appeal to consumers in the critical 16-24 age group. II. Market Re-positioning The product remains unchanged, but the product is repositioned to appeal to a new market segment. For example, Lucozade is a brand of carbonated glucose drink that was originally targeted as a product for individuals suffering from illness, particularly children.

Now it has been repositioned as an isotonic drink aimed at young adults undertaking sporting activities. III. Product Re-positioning Product re-positioning is materially changed but is still aimed to appeal to the existing target market. Product positioning is closely related to market segment focus. Product positioning involves creating a unique, consistent, and recognized customer perception of a firm’s offering and image. A product or service may be positioned on the basis of an attitude or benefit, use or application, user, class, price, or level of quality.

It targets a product for specific market segments and product needs at specific prices. The same product can be positioned in many different ways. IV. Total Re-positioning This option involves both a change of target market and accompanying product modifications. For example, Skoda has managed under Volkswagen’s ownership to reposition itself totally. The product quality and design have changed significantly, and the brand now has credibility with new, more affluent consumers. This has also allowed the brand to expand its sales outside its Eastern European heartland.

Reasons to consider brand re-positioning

The brand has a negative image. This can easily happen and often is not the company’s fault. Damage can be done by maverick individuals, as in the notorious cases of poisoning of the products such as Tylenol and Perrier. It can also be an effect of government policy. For example, if a company builds a highway and forecasts year ahead the toll charges for the government, the public may know nothing about any intended road price increases until the government announces them at a much later date.

This announcement may be handled badly by the government, perhaps being made during recessionary times when disposable income is reduced. Although it is not within the control of the company collecting the toll, it still reflects badly on the company. Public relation is usually the fire-fighting answer, but forward-looking companies use advertising and public relation strategically to think ahead about potential problems. This is sometimes scenario planning or issues management. The company looks ahead for a certain length of time.

It can be months with fast-moving consumer goods or a couple of decades with conglomerates. An example of how a company thought about its brand image in this way is seen in Telekom Malaysia’s sponsorship of the 1998 Malaysian Everest climb. Many things could have happened, including the injury and death of the climbers. But a comprehensive set of guidelines was prepared for staff covering responses to possible questions the company would be asked in both positive and negative scenarios. On the other hand, Coca-Cola did not seem to react quickly enough when the European scare surfaced in mid-1999.

They suggest that it might not have planned what to say in such unlikely circumstances, and now it has a major re-positioning job to do. The brand has a blurred or fuzzy image When this happens, people do not feel strongly about the image one way or the other way or have mixed perceptions about it. This is quite likely to happen when a brand has not been positioned properly. Perceptual mapping would probably reveal that the brand is very close to other brands in terms of customer preferences and has little to differentiate it.

A re-positioning exercise would need to be carried out to get the brand into a space away from the other brands. This may involve changes to the product or packaging.  Competition has moved close or taken over the brand position. This is a constant threat facing any successful brand because everyone wants to emulate success. It sometimes takes companies by surprise, as the Japanese brand Lexus did to BMW in the U. Ss this is a constant hazard in the consumer goods category. Companies have to be prepared to constantly innovate with existing products and bring out new products to surround the category space.

FedEx, one of the world’s leading courier companies, upon finding out that all other Asian courier companies had positioned themselves around the benefit of speed as it had done, moved away with a very large advertising campaign and suggested that whatever the adverse circumstances, FedEx would deliver. It has not lost the speed benefit because this product is related. It has instead added a dimension of corporate personality to strengthen the overall company image hence differentiating it from the rest of the crowd. The company is embarking on a new strategic direction.

When a company embarks on a new strategic direction, moves into a new industry, or introduces a brand that is remote from the core business, brands with an already powerful image face less of a problem this might bring. However, weak brands will find it essential to reposition them to convince the target audience of their credibility. For example, Coca-Cola feels confident enough to bring out its own brand of clothing. There are limits to brand extensions. If the brand name is not too elastic, a totally new brand name may be necessary. The company introduces a new brand personality.

When a company introduces new brand values or personality characteristics, it needs to undertake re-positioning. Privatization and deregulation have forced many government institutions to change their practices, values, and their cultures. This is a significant challenge as consumer perceptions are deeply entrenched, and re-positioning requires considerable persistence and repetition backed up by a totally different brand culture and customer experience. Similarly, re-packaging a brand requires re-positioning. 6. The company addresses a new target audience

Moving to a new market segment in addition to the existing ones is always tempting for brand development. The danger lies in alienating the brand’s existing customer base. The example presented by Toyota said it is considering joining Formula One racing by 2003. It is trying to revitalize its image to appeal more to the youth, a segment that tends to buy more innovative products such as those produced by Honda. By joining Formula One, it hopes to send a message to young people about the fun of driving and position Toyota as technically up-to-date. The sales are declining.

This is the basic reason why Marlboro considered re-positioning in the 1950s. If the absolute sales start to drop, you need to take a step back and figure out the cause. If you think that you are offering your service or goods at its best, but it still does not continue to attract customers, it could be that your brand needs to be refreshed, if not represented differently. New competitors have a better value proposition. In that case, rest assured that your initial position will be destabilized. If customers see that other brands offer better than yours, they tend to shift.

Hence, the company's option is to either step up or get left behind. 9. Customers think that your brand is outdated and not established. Being an older brand does not necessarily put you in a higher position. Customers may see your brand as outdated or irrelevant. What you need to work on is how you can really ‘establish’ your brand. You know your brand is established when customers trust you and go back to it again and again. In other words, an established brand produces loyal customers. Your products and services have evolved drastically. Over time, companies change and expand.

You may have added new products, refined old ones, or expanded the line. This would help you stay relevant and fresh. However, if you have changed your products or offerings over a long stretch of time, chances are, the branding strategy that you started with does not reflect the brand anymore. It might be out of sync already. You may need to change it to mirror what the brand stands for now.

How to reposition a brand for higher meaning?

To be successful at re-positioning your brand, you have to create higher meaning and aim higher. Aiming higher requires outward thinking and learning from the marketplace.

Some companies have been engaged with a variety of consumer product brands whose managers are seeking new opportunities to grow their brand’s value. In all these engagements, I have noticed a common thread among all of them which were consumers no longer care about them because they have lost their compelling meaning in the consumer’s mind. Once a consumer’s mind is made up about a brand, it’s next to impossible to change it. The decisions facing brand managers and marketing executives regarding how they deal with our ever-evolving market landscape usually come down to three options:

1. continue to invest in the existing brand, meaning
2. create a sub-brand
3. invent a completely new brand

All of these options have advantages and disadvantages, more so if the brand is also facing dramatic challenges in distribution. The driver underpinning all these options changes. Brands are dynamic. They have their cycles, and they run their course. What is hard for managers to grasp is when to move on. This is particularly true if the brand was once a leader. Market success always creates size, power, and a false sense of security.

Over time, this creates an unrealistic view of the external reality and a lack of urgency to correct course in maintaining relevancy among consumers. Brand managers naturally become inwardly focused, and they tend to miss seeing new opportunities or competitive threats. Complacency becomes the norm, the brand’s compelling meaning in the minds of consumers gets blurred, and sales drop. If companies are faced with reinventing a brand, the problem that they face is most likely obvious. Somehow many people believe a good idea has to be clever, mysterious, or layered in complexity. The best ideas for re-positioning brands are simple.

If the core idea behind the brand’s meaning is not simple and obvious, it will not stand a chance in the overcrowded slush pile of a marketplace in which the brand must reside. Simple ideas are self-evident, which is why they work so well. Positioning is the art of sacrifice. A brand can only stand for one compelling, radical, differentiating selling idea. The trouble with simple ideas is they have no appeal to the imagination and are easily overlooked. We are naturally drawn to the more clever and ingenious ideas. Resist this temptation. The company needs to aim higher thinking toward the simple, obvious differentiating idea that elevates the brand to a new meaning people really care about.

Re-positioning strategies to achieve competitive advantage

It is high time we re-examine the way the re-positioning of the brand is done in this ever-changing marketplace. Uncertainty and trends have placed companies in a race against time. Gone are the days when work for every segment of consumers was like a charm. The life and soul of the marketplace today are focusing on and engaging a specific target market. The major paradigm of strategic re-positioning is now the introduction of small scale change with budget.

The value-based system is the money spinner that competitors have been using to bring companies down. Strategic re-positioning and exploitation of brand advantage is the only cash cow that can be used to counter them. The re-positioning strategy below will keep the company aware of the failure.

Reposition the brand internally. Internal brand building is an emerging trend in marketing that is used to solidify the position of a brand in an organization. Brand-based internal communication will communicate the new strategic position of a brand to employees of an organization.

Major home improvement companies like Home Depot and Lowes are examples of companies with strong internal communication. Engagement will foster strategic intent of re-positioning into the training experience and job activities of employees. Organizational alliance with brand re-positioning activities will enable the company to achieve increased customer referral, expanded sale portfolio, and customer service efficiency.

Carry out consumer analysis The essence of carrying out consumer analysis is to identify prospects, customers, and target groups in order to position the brand correctly.

Success will go the extra mile if new product development can focus on consumers’ needs and wants. The new brand profile should correlate with consumer behavior and value. New product development managers have to make sure that they meet and exceed consumer expectations in order to make them loyal to the brand. And lastly, the company should engage the brand in the mind of consumers consistently in order to create a lasting emotional affinity.

Competitive analysis is the assessment of the strength and weaknesses of your rival. The company does not underestimate the power of its competitors.

The emergence of technologies has made it easy for them to gain insight into the future before anyone does. New product development should create an uncontested market space by making sure their marketing mix is innovative in nature. They can differentiate the position of their brand by instilling a distinct feature in price, promotion, distribution, and the product itself.

Fine-tune advertising strategies Companies like Verizon, gap, Apple, Microsoft, and MacDonald have fine-tuned their advertising strategy to “consumer needs” tactics. Appealing messages will create brand awareness and increase sales to them.

By using a medium that will clearly communicate new brand position and features to existing customers and prospects. They have to employ a message that has a specific objective in order to add value, success, quality, excitement, substance, and equity to the positioning of their brand. Besides that, advertising objectives should be derived assessment of the market situation, price position, competition, and channel of distribution.

Create a good relationship with trade partners and channel members Trade partners and channel members are people that ensure the product or brand gets to the hands of final consumers.

Intermediaries have very strong ties to brands. Good strategic partnerships and relationships with channel members are very important in ensuring that the new brand position is communicated to consumers. They can also supply the sales force and marketing communications necessary to persuade consumers to go beyond buying a product. Companies like Dell Computer, FedEx, and Charles Schwab have a very great system that has enabled them to achieve a very powerful competitive advantage. 6. Reassess It is always good to carry out an assessment of brand position continuously to ensure relevance in the market.

This strategy will eliminate risks and problems from piling up. It is done by carrying out internal and external analysis of brand ratings within employees, customers, and prospects. The result of the analysis will enable them to know the strength and weaknesses of the brand position. Furthermore, the data collected will enable you to map out an informed strategy to reposition the brand all over again.

Profitable ways to reposition a brand

The reason is that brand re-positioning strategy is applicable to a wide range of real business problems and marketing issues.

Brand re-positioning is the only effective strategy that can generate feasible solutions to problems based on the current needs of the market. Therefore, it is imperative organizations understand specific ways to reposition a brand. Below are illustrations of ways to reposition a product or service. To make the brand relevant One way to reposition a product or service in the mind of the target market is to make it relevant. Brand relevance can be defined as the alignment of a brand’s identity, attributes, and personality with the needs of the target group.

The reason behind making brands relevant constantly is because of changing needs of society and the profusion of alternatives. Brand relevance entails keeping the brand current and significant in the mind of the target group. It also encompasses ensuring that the brand resonates and connects to consumers emotionally. ii. To enhance brand identity Another way to reposition a brand is to enhance its identity in the marketplace. Brand identity is the visible element of a brand, such as colors, logo, design, symbol, and name, that distinguishes a product or service in the mind of the consumer.

Identity enhancement is done, especially if there is no consistency between brand interfaces and consumers. Redefinition of identity is also done when two or more company is merging together. Brand identity is strategic or substance oriented in nature. Brand identity begins with an analysis of the marketing environment and ends with using research data to create a relevant brand portfolio. To enhance brand personality, Organizations reposition brand personality, especially when they need to solidify customer loyalty and engagement.

According to David Aaker, author of the book “Building a strong brand,” “brand personality can also be defined as the set of human characteristics associated with a given brand.” It is also the personification of intangible and tangible traits of a brand. Brand personality projects beliefs and core values of products or services. It is a framework that creates passion and affinity in consumers. Types of brand personalities include trustworthiness, sincerity, strength, reliability, consistency, sophistication, and emotion. To enhance the brand experience

Another way to reposition a brand is to enhance consumers' experience in order to gain a long-term competitive advantage. Brand experience encompasses aligning products or services to end-user moods, needs, desires, and behavior. It also involves using stimuli to invoke feelings, sensations, and responses. A memorable and unforgettable experience is created by being insightful, remarkable, valuable, dynamic, relevant, and accessible enough to unravel gaps and deliver satisfaction incessantly.

Customers’ physical & emotional expectations are enhanced by creating a great experience at all faucets of interaction. To enhance brand essence Periodically, organizations enhance the essence of their brand by associating the brand with meaningful and relevant substance. Brand essence is a pathway for adding value and equity to a product or service continuously. The concept of brand essence is also defined as a phrase or statement that contains an emotional connection or impression about a product or service experience. It is the DNA or core characteristic that distinguishes a brand from other alternatives. Illustrations of traits associated with brand essence include unique, relevant, scalable, and sustainable. i. To enhance brand image/reputation Another Way to reposition the image of a brand is through its appeal, fame, and value.

The business dictionary defines brand image as the “impression in the consumer’s mind of a brand's total personality.” Brand image can also be defined as what a brand stand for or a set of specific belief about the brand in the mind of consumers. It deals with readjusting the perception of consumers on the brand. It is tactical or appearance oriented in nature. Various ways to enhance a brand image are through advertising, promotion, word of mouth, customer service, and other touch points. ii. To adjust brand association Re-positioning of brand association is done by organizations to increase product or service appeal to the core target group. The business dictionary defined brand association as the “extent to which a particular brand calls to mind the attribute of a general product category.” It can also be defined as the meaning, attributes, and image associated with a brand in the mind of consumers. Associating brands with enchanting features can solidify loyalty and turn consumers into evangelists or advocates.

Various brand association includes customer contacts, advertisements, character, word of mouth, celebrity, category, geography, end-users, slogan, intangibles, products, extensions, and displays. viii. To emphasize brand attributes Sporadically, factors like unstable markets, short product life cycles, technological advancement, and alternatives can make the attribute of a product or service irrelevant. Re-positioning of brand attributes is done by emphasizing attributes that matter most to consumers or target groups. Brand Attributes are defined as the properties or characteristics of a product or service.

It can also be defined as the emotional as well as functional association consumers confer with a brand. Types of attributes include cost, friendliness, authentic, innovation, prestige, and reliability. ix. Brand differentiation Organization indulges in differentiation strategy when they need to establish a strong identity in the mind of consumers. Business dictionary defined brand differentiation as the “result of an effort to make a product or service stand out as a provider of unique value to customers in comparisons with its competitors.”

Chosen point of differentiation needs to be significant to the target market, not used by competitors, and supported by organizational resources. Types of differentiation include components, performance, experience, market leader, convenience, innovation, pioneer, essential, expertise, and responsiveness.

Why could brand re-positioning be the best solution through a website?

When you have been working on a brand for a long time, it can be depressing to find out that it does not have the positive effect that you hoped.

Examining the brand equity for the website can sometimes reveal that there is virtually no difference between marketing your company with the brand and promoting it without. This usually means that your current brand is missing the mark and you are just not connecting with your customers. In order to create better equity and retain more customers while bringing in new traffic, you should seriously consider brand re-positioning for your website. Re-positioning a brand means changing the angle or design of your current brand marketing campaign or even simply discarding your brand and starting again.

On a website, which needs to be constantly changing in order to keep up with modern trends, it can actually be a good idea to reposition your brand every so often. This keeps the website fresh for your clients and can also attract and retain customers who would not be otherwise connected while also allowing you to fine-tweak the Brand Promise or other elements which affect the levels of brand equity. There are a number of reasons why you should consider brand re-positioning for your website. If you are just not attracting the sales that you had at the beginning, then changing the brand can bring back former customers.

You would also need to focus on promoting different elements of your products or services to keep the interest, but this can be a positive side effect of brand re-positioning. Another reason may be that the brand you have chosen does not really match your website, and you are therefore losing customers. For example, if you are promoting a brand of shoes with puppies and kittens on, then you would not want a brand image that resembles a heavy metal poster. Your customers base their opinions of your values upon your branding, so the item and the brand need to be close, if not completely perfect, match.

A brand that clashes with your website or the item or service offered for sale simply has to go, and changing the logo, colors, and appearance of your brand can be the incentive that some websites need to completely overhaul the way that they operate which was by leading to new initiatives that generate more income for the owners. Brand re-positioning can also be a step designed to help the owner of the website with brand management, keeping the brand to a set design, and making it clearly different from other types of brands which are very similar to your own.

If a rival company has put out a product with a virtually identical brand to your own, then you can cut down their stealing of your clients by changing the appearance of your brand. This type of brand re-positioning can also ensure that you keep up-to-date with your opposition and don’t become the traditional website, as this can put off some buyers. There are also several different types of effects that can result from brand re-positioning. For example, you may find that changing the look and feel of your brand can make your company more relevant to the customer.

If you offer a service, then you may find that your regular customers increase their levels of use because re-positioning the brand has opened up potential uses that the customer had not previously thought of. It may also serve to make the customer take your product more seriously. Sometimes when a website has been used for a long while, clients can feel a bit bored with your site, and re-positioning can make them think again about your products. Re-positioning can also ensure that your brand keeps up with changing market conditions that would otherwise have resulted in a drop in sales.

By constantly re-positioning the brand in the market, websites can keep themselves one step ahead of the competition and keep up with current trends. Making sure that you don’t fall behind ensures that you retain customers and keep bringing in new ones. In the more modern era of social network sites, companies also rebrand in response to changing customer demands. Some websites may need re-positioning in order to keep the interest of ‘followers’ because it gives them something to notify their fans about, and so keep the company in the user’s memory.

Others may hear direct complaints about their current brand, and this can lead them to reposition their brand in the market, hoping to ease customer dissatisfaction with a particular part of the brand’s products. Although you may not have experienced any opposition as yet, re-positioning is a good idea even for a very small company with social networking contacts, and in order to ensure that effective branding is installed, working with a company such as www.expertsbranding.com can ensure that you keep your brand contemporary and consistent even after it has been repositioned.

Successful brand re-positioning

There are three key factors in successfully planning for and delivering on brand positioning. There are, of course, many examples of this not going to plan and, in fact, companies having to backtrack on their new promise to a more pragmatic place. The three components to success or consideration on this topic are i. Planning new positioning so that it fits within the existing reference points of the target market. Some companies, much like the creation of social media personas and communities, and not try to create a new identity or personality, or place for the brand.

That is too far away from the existing perception of that brand in its category and market position. ii. Ensuring that the audience will grant you permission to re-position. This stage essentially encourages the brand to consider current customer sentiment again. The question is whether they are looking for the brand to evolve and change, or are they comfortable with where it is or not even aware of the current positioning? Essentially efforts are wasted if the audience is not likely or be receptive. iii.

Finally, and I think critically, the last component is ensuring the organization delivers on the new brand promise. This seems logical, but the best examples of brand re-positioning are where brands start transforming internally and fundamentally - the brand, of course, needs to behave like it wants to be seen. No one likes a big talker with no follow-through.

Examples of re-positioning brand Sunkist

In this digital age where music and the virtual world dominate most of the younger generation's daily lives, marketers have to change and adapt their strategies to reach their target market.

Recently, the American soda brand Sunkist has initiated a brand re-positioning. They are now aimed at trend-savvy teens and young adults. Sunkist's brand manager said that they just couldn't rely on traditional marketing. The brand's mother company, the Dr. Pepper Snapple Group, is now utilizing YouTube, MySpace, and Facebook platforms to promote its products. The company has also partnered with MySpace to promote its project. Sunkist has also created four new videos featuring young break dancers out at night.

Many brands and companies are now using digital communication mediums and social media tools for a more relevant communication strategy that is in line with their target market’s interests and ways of life, such as LG, Unilever, and Nutella. In an era when people are switching from television to computers and mobile phones, companies cannot only use traditional advertisement channels and must find new ways to reach their customers. Today, the proliferation of online platforms seems to be a great opportunity for marketers to enter this new age of communication.

There is no doubt that Sunkist’s new strategy will help the brand increase its global awareness and successfully reach its consumers. Today, the young generation is more health conscious and probably less willing to buy drinks containing huge amounts of sugar. Sunkist did their market research before launching the new campaign to ensure their brand re-positioning was a success. Johnson and Johnson Liquid petroleum is low-value, mass-produced, and has a wide variety of uses; there is huge potential for mass marketing.

The market name for this substance has been long known as Mineral Oil, used primarily for health and medical uses. But US pharmaceutical and fast-moving consumer goods manufacturer Johnson and Johnson bridged the gap between the initial R&D and the market-ready innovation by defining a baby-care niche: Johnson’s Baby Oil was born. This extended their ‘baby’ product range, which later also included ‘No more tears shampoo.’ These products demonstrate the benefits and drawbacks of a ‘Focus’ strategy. As the consequential brand re-positioning shows, operating in a niche has its limitations.

The branding of their baby oil and shampoo has been highly effective in defining their niche: happy babies in above-the-line advertising, pink packaging, and a trusted producer send out all the right connotations; mothers know that these products will never harm their babies. As a result of this, Johnson and Johnson can differentiate themselves from the competition, which is the essence of what a brand should aim to do that seduces a female-orientated target market to ignore generic competitors. This may have been key to success as Micheal Porter’s Five Forces demonstrate, Johnson and Johnson has less power than their customers, the supermarkets, who are also trying to sell their own-brand alternatives. Hence, branding to create a niche is a competition-driven objective. However, while it was a competitive strategy, nowadays, the products are marketed to a wider mass market, and the ‘baby’ niche, which limited sales, has been ditched to pursue a new sales growth aim. This is essentially re-positioning a brand.

The baby oil and shampoo, it is argued, are soft and gentle enough even for babies, then surely new consumers can be attracted to use the product, which mirrors a form of market development. Predictably, more customers equate to more sales and, therefore, greater revenue; also, by increasing demand, Johnson and Johnson can benefit from internal economies of scale to reduce average unit costs, which boosts profit margins. But this is easier said than done: very good marketing was needed to reposition their products successfully.

Ironically, therefore, the secret behind successful brand re-positioning is not to change the branding to match the new consumer but change the consumer’s perceived ‘needs’ to match the brand.

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