Lecture Notes On Brand Repositioning
Lecture Notes On Brand Repositioning
Introduction
Brand repositioning is a strategic decision as it has long term implications for the business of
the firm. As strategic decisions go these have long term implications as well need large
investments of resources which in case of failure are usually lost or unretrievable. This
requires a thoughtful consideration of not only the customers trends that might have
triggered this decision but also how the competitors will react to this repositioning move. The
second is intricately linked with the first as when repositioning is being executed the
transition results in an emergent strategy situation where projection and predictions cannot
be made with accuracy thus requiring a new set of skills and competencies such as flexibility
and resilience that keeps both emerging opportunities and threats under observations while
responding to these in calculated manner. For further explanation on emergent strategy
framework read material which high lights emergent versus planned strategy approach
(Mintzberg and Lampel).
Given the seriousness of the decision it is best to not only understand the pros and cons of
repositioning but also to understand the risks involved and the possible alternatives that
might be considered before finally deciding to reposition or not to reposition. In the next
section we will look at some pros and cons of repositioning the brand based on the trends or
the brand audit reports that suggest either gaps in the brand strategy and the market
(customers necessities) or when the brand loses its core customer market to shifting
demographics or shifting social and economic trends. The third section will pose some risk
factors and finally fourth section will highlight some alternative to brand repositioning which
form important options that need to be considered with all their own individual implications
for business. These last sections can be further supplemented by reading more from the
prescribed book that is available on line with the students of BBA VIII, or may refer to the
following referable books.
References
Keller, K. L., & Kotler, P. (2016). Marketing management. Pearson.
Aaker, D. A. (2010). Brand leadership. Simon and Schuster.
Kapferer, J. N. (2012). The new strategic brand management: Advanced insights and
strategic thinking. Kogan Page Publishers.
SECTION 2
This section critically examines the advantages (pros) and disadvantages (cons) of brand
repositioning efforts. Brand repositioning refers to the strategic process of altering the
perception and positioning of a brand in the minds of consumers. While repositioning can
offer numerous benefits, it also poses certain risks and challenges. This section provides the
key pros and cons of brand repositioning, drawing on relevant literature and research
findings.
Introduction:
Brand repositioning has become a popular strategy for organizations seeking to adapt to
changing market dynamics and consumer preferences. This section will shed light on the
advantages and disadvantages of brand repositioning efforts, enabling brand managers or
decision makers to make informed choices in their pursuit of managing a successful brand.
Pros of Brand Repositioning:
Enhanced Market Relevance:
Brand repositioning allows companies to adapt to evolving consumer demands, market
trends, and competitive landscapes. By revitalizing their brand image and messaging,
organizations can regain relevance and attract new customer segments. A study by Aaker
and Joachimsthaler (2012) found that successful brand repositioning efforts can lead to
increased market share and improved financial performance.
Expanded Customer Base:
Repositioning offers an opportunity to target new customer segments that were previously
untapped. By repositioning the brand to appeal to a different demographic or psychographic
group, companies can unlock new growth avenues and increase their market penetration.
Research by Yoo and Donthu (2001) supports the notion that brand repositioning positively
affects customer acquisition and market expansion.
Competitive Advantage:
Brand repositioning can help a company gain a competitive edge by differentiating itself from
rivals especially in a crowded market. It may also be relevant when the brand has lost its
competitive advantage in an existing market which may require establishing a unique market
position in a new or growing segment. By aligning the brand with distinct attributes or values,
organizations can create a compelling value proposition that sets them apart from
competitors. Keller and Lehmann (2006) note that successful repositioning efforts can lead
to a sustained competitive advantage in the long run.
Cons of Brand Repositioning:
Risk of Customer Confusion and Loss:
Changing a brand's positioning can confuse existing customers who have established
associations with the previous brand image and values. Repositioning efforts that are not
well-executed or properly communicated may result in customer dissatisfaction, alienation,
and ultimately, loss of market share. A study by Keller and Aaker (1992) highlights the
importance of carefully managing brand repositioning to mitigate the risk of customer
confusion.
Financial Implications:
Brand repositioning can be a costly endeavor, involving expenses related to market
research, creative development, communication campaigns, and potential product
modifications. Organizations must carefully assess the financial feasibility and potential
return on investment before embarking on a repositioning journey. Studies by Ailawadi et al.
(2009) emphasize the need for rigorous financial analysis and risk assessment when
considering brand repositioning initiatives.
Introduction
The above section briefly pointed out some of the opportunities and challenges faced by
brand managers when the start out to figure out if a brans repositioning would be right
decision to recover lost brand equity. In this section the focus would be on the possible risks
that a brand could face if the effort is undertaken. This will do things one to focus the
management on the possible stumbling blocks that may lead to failure of the brand
repositioning effort, which at the same time will help in aligning the organizational strengths
to avoid or mitigate the risks that are being presented. It is strongly advised that this section
should be viewed in combination with the brand value chain. When we combine the two, we
have a much clearer view of what the possibilities of failure are and how we can manage to
achieve success in the effort.
Risks
Loss of Brand Equity: Repositioning can lead to a loss of existing brand equity if customers
perceive the change negatively. The brand may lose its loyal customer base, market share,
and competitive advantage.
Confusion and Dissonance: Repositioning can cause confusion among customers who are
accustomed to the old brand positioning. If the new positioning is not effectively
communicated, it may result in dissonance and alienate customers.
Target Market Misalignment: If the brand fails to accurately identify and understand its target
market during repositioning, it may end up attracting the wrong customer segment or fail to
appeal to any segment effectively.
Competitive Response: Competitors may react strategically to the brand repositioning by
adjusting their own positioning, intensifying competition, and potentially eroding the brand's
market share.
Financial Investment: Repositioning often requires significant financial investment in
marketing campaigns, research, and development. If the repositioning fails to generate
desired results, it can result in a waste of resources and financial losses.
Internal Resistance: Employees and stakeholders within the organization may resist the
changes associated with brand repositioning. This resistance can manifest in low morale,
decreased productivity, and potential conflicts within the organization
Brand Dilution: Repositioning can dilute the brand's identity and core values if the new
positioning is not aligned with the brand's heritage and existing brand equity. This dilution
may lead to a loss of brand differentiation and customer loyalty.
Perception Gap: There is a risk that the desired brand positioning may not align with
customers' perceptions or expectations. If the new positioning fails to resonate with
customers, it can result in a gap between the intended and perceived brand image.
Timing and Execution: Poor timing or inadequate execution of brand repositioning can have
detrimental effects. If the market conditions are not favorable, or if the brand fails to
effectively communicate and implement the of the repositioning campaign
SECTION 4
When the risks associated with brand repositioning outweigh the potential benefits, brand
managers may consider alternative strategies to address their goals and challenges. The
following are some alternatives to brand repositioning:
Brand Extension: Instead of repositioning the existing brand, a brand manager can explore
opportunities for brand extension by introducing new products or services under the same
brand umbrella. This allows the brand to leverage its existing equity and expand into new
markets or target new customer segments.
Line Extension: Rather than repositioning the entire brand, a brand manager can consider
line extension by introducing new variations or versions of existing products or services. This
strategy helps to cater to different customer needs while minimizing the risks associated with
a complete brand overhaul.
Brand Partnerships or Co-branding: Collaborating with complementary brands through
partnerships or co-branding initiatives can be an effective alternative to repositioning. By
leveraging the strengths and reputation of partner brands, a brand manager can achieve
market growth and differentiation without making significant changes to the existing brand.
Repackaging and Design Refresh: If the brand's visual identity or packaging has become
outdated, a brand manager can opt for a design refresh or repackaging strategy. This
approach helps to modernize the brand's look and feel while maintaining continuity and
minimizing the risks associated with repositioning.
Targeted Marketing and Communication: Rather than changing the brand positioning, a
brand manager can focus on refining the marketing and communication strategies to better
reach and engage the target audience. This approach involves understanding customer
insights and tailoring messages, channels, and campaigns to effectively connect with the
desired market segment.
Customer Experience Enhancement: By improving the customer experience, a brand can
strengthen its relationship with existing customers and attract new ones. This alternative
strategy involves investing in areas such as customer service, product quality, convenience,
and personalization to differentiate the brand and drive customer loyalty.
It is important to note that the suitability of these alternatives will vary based on the specific
context and objectives of the brand. Therefore, it is that a thorough market analysis is
conducted. This may include customer market research, analysis, and evaluation as well
resort to brand audit reposts to determine the gaps that could be identified and then take the
most appropriate course of action.