Brand Repositioning

Topics: Brand, Brand management, Branding Pages: 16 (5706 words) Published: November 22, 2012
A company or product is new and people already formed judgments about it. In other word, 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 unlikely to get to where it wants to go.

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 target customer, a new brand promise should be defined so the brand can be repositioned.

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 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 develop a new product in 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 were seen as reliable but dull in 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 has been 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 of group.

II. Market Re-positioning
The product remains unchanged but the product repositioned to appeal to a new market segment. For example, Lucozade is a brand of carbonated glucose drink 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 about 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 has 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.


1. 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....
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