How to Elevate Performance with a Company Repositioning Strategy.

The last decade has seen seismic shifts in everything from technology to consumer goods. Consumer preferences have evolved—trends such as health-conscious and eco-friendly choices are no longer nice to have; they are expectations. For companies, standing still is no longer an option. Strategic company repositioning is critical to adapting to these changes, ensuring that brands remain relevant and competitive in an increasingly demanding market.

Brand repositioning is a powerful tool for keeping companies relevant in a rapidly evolving landscape. It isn’t just about changing the logo or tweaking messaging; it’s about fundamentally transforming how consumers perceive the brand. Companies must establish strong brand foundations to achieve successful brand repositioning. 

This guide will teach you how to build a successful company repositioning strategy. You will also learn about various company repositioning strategies and how to implement them while avoiding the common pitfalls. So read on to learn more!

When and why do companies consider repositioning?

Companies consider repositioning when their current brand, product, or strategy no longer aligns with market realities or business goals. Effective repositioning strategies often hinge on a thorough understanding of changing conditions, consumer preferences, and competitive dynamics, all anchored in a solid brand repositioning strategy. 

Here are some of the most common drivers behind product repositioning and brand identity shifts:

Changing market dynamics. 

Shifts in economic landscapes, technological innovations, and emerging trends frequently demand a reassessment of a company’s marketing strategy. For instance, inflation or economic downturns can influence consumer purchasing power, necessitating a more value-driven or premium approach to remain competitive. 

Similarly, innovation disrupts industries, compelling brands to evolve to stay relevant. Companies may emphasize digital-first solutions or integrate cutting-edge features. Lastly, sustainability and ethical production are prime examples of consumer demands that can redefine a brand’s personality. 

At SmashBrand, we leverage market mapping to map the latest trends against consumer needs, ensuring that repositioning decisions are data-driven and consumer-validated. 

Competitive pressures.

Disruptive business models, market saturation, or the rise of nimble competitors can erode market share. Brands often reposition to:

• Differentiate in a crowded market.
• Counteract competitors with unique value propositions.
• Leverage tangible repositioning strategies, such as packaging updates or highlighting underutilized strengths.

Through proprietary testing methodologies, SmashBrand eliminates subjectivity and validates repositioning with real-world shoppers’ insights. We ensure the refreshed brand identity holds firm against competitors. 

Organizational growth or evolution. 

Internal changes—like mergers, acquisitions, or leadership shifts—can redefine a company’s goals, requiring a new brand repositioning strategy to reflect its new direction. A merger might require a unified brand personality. Growth in new markets may sometimes call for cultural or regional positioning adjustments. 

Adapting to consumer trends and expectations.

Sustainability, digital convenience, and transparency are increasingly shaping consumer values. Brand repositioning in marketing resonates with these priorities and enhances relevance and loyalty. For instance, eco-friendly initiatives, simplifying digital touchpoints, or emphasizing ethically sourced materials. 

Our marketing strategy begins and ends with the consumer. By embedding their feedback into our testing and design iterations, we craft tangible repositioning strategies that align with current expectations while maintaining authenticity​​.

Types of company repositioning.

Various company repositioning strategies adapt a brand to evolving markets, consumer expectations, and competitive pressures. Here’s a breakdown of the main types of repositioning:

Product-based repositioning.

This strategy involves enhancing product attributes—quality, features, or packaging—to meet changing market demands. For instance, Quest Nutrition expanded the protein snack category by launching protein chips, turning a non-functional snack into a high-protien alternative. This move leveraged consumer interest in functional foods to redefine the product’s appeal. 

Impact: Product-based repositioning targets customer perception by meeting demand for health-focused options while maintaining brand relevance.

Market-based repositioning.

Companies adjust their target market or explore new segments to capture untapped opportunities. For instance, Dole’s Fruitify juice line entered the health-conscious segment with products enhanced by turmeric and coconut water, appealing to consumers seeking functional nutrition.

Impact: By leveraging a clear repositioning strategy, Dole reached new demographics by prioritizing health and wellness, enhancing its brand perception.

Value proposition shift.

In this strategy, brands significantly enhance their promise to consumers by prioritizing affordability, premium quality, and sustainability. Take Nestlé, for instance; they have successfully launched new premium blends of Nescafé in eco-friendly packaging, effectively attracting customers who desire both sustainability and an exceptional coffee experience. 

Impact: The company successfully transitioned to a new brand positioning, improving its resonance with environmentally conscious consumers.

Organizational repositioning.

Organizational repositioning strategy focuses on altering the company’s culture, vision, or operational focus to better resonate with employees and consumers. For example, PepsiCo expanded its commitment to sustainability by reducing sugar in beverages and using more sustainable packaging across its portfolio. 

Impact: Organizational repositioning creates a cohesive message that enhances trust and reinforces customers’ perceptions of the company’s values. 

Critical steps in a company repositioning strategy.

Repositioning a company requires a structured approach to ensure alignment with market needs, improve brand perception, and enhance brand equity. Here are the critical steps in a successful repositioning strategy:

Conduct a comprehensive market and internal audit.

Before initiating changes, it’s essential to assess the company’s current brand positioning. Analyze market trends, competitors, and customer perception to identify gaps or opportunities. Retail audit services and consumer insights are valuable for pinpointing what resonates or falls short with the target market. Evaluate internal strengths, weaknesses, and organizational alignment with brand values.

Define clear objectives and target audience. 

Set measurable goals to guide the repositioning, such as capturing a new brand positioning to target emerging demographics. Other goals include enhancing brand awareness or expanding market share in niche segments. Sometimes, a company may want to realign the brand’s identity to redefine customer perception. 

Crafting a repositioning roadmap.

A comprehensive roadmap is critical for ensuring repositioning efforts are deliberate and impactful. This plan incorporates both tangible and intangible repositioning components. Tangible Adjustments include revising packaging, refining product features, or recalibrating pricing strategies to align with the new brand strategy and meet shifting consumer expectations. 

SmashBrand’s market mapping service plays a pivotal role by identifying precise opportunities for optimizing these physical elements based on consumer behavior and competitive benchmarks. Intangible adjustments involve redefining brand messaging to highlight core values such as sustainability, innovation, or ethical sourcing. 

Engage stakeholders and align the organization. 

Repositioning requires buy-in across the company to avoid disjointed efforts. Conduct workshops or meetings to communicate goals and gather input. Ensure that all departments, from marketing to sales, are aligned with the brand development objectives. Take buy-ins from everyone to keep all stakeholders on the same page and avoid confusion. 

Implement changes in phases.

Instead of a sudden role out, opt for gradual implementation. Why? Because gradual implementation allows for adaptation. Roll out the updated digital marketing strategy and branding elements (logos, taglines) in phases. Use market testing to evaluate customer perception and fine-tune elements before a full-scale launch. 

Measure, adapt, and optimize.

Leverage key performance indicators (KPIs) like sales growth, market share, and consumer engagement to gauge the success of repositioning. Use real-time insights from consumer surveys, social media analytics, and brand management platforms to monitor the impact of repositioning. Use feedback to optimize your strategy and ensure improvements in the sustainability of your brand position. 

Challenges and risks in company repositioning.

Repositioning a company is a strategic necessity in dynamic markets. Still, it comes with challenges and risks that demand careful navigation to protect the brand name, enhance brand image, and maintain customer loyalty.

Risk of dilution.

Companies risk weakening their brand name or alienating loyal customers when transforming into a new brand position. Striking the right balance between innovation and consistency is critical to maintaining a cohesive brand image.

• Challenge: A lifestyle brand repositioning to attract new demographics may inadvertently alienate its existing customers if the changes feel misaligned with the original ethos.
• Mitigation: Conduct thorough market perception analyses and leverage tools like email marketing to communicate the vision to core audiences, ensuring clarity and inclusivity.

Internal resistance.

Cultural inertia and employee reluctance often hinder the successful implementation of repositioning in marketing.

• Challenge: Employees may feel disconnected from the revised positioning or unclear how their roles fit in the new direction.
• Mitigation: Build internal alignment by engaging teams early through workshops, feedback sessions, and consistent communication. Make employees ambassadors of the repositioned lifestyle brand to foster enthusiasm and shared purpose.

Resource allocation and investment.

Repositioning demands significant financial, operational, and time investments. Mismanagement can strain resources and impact day-to-day operations.

• Challenge: Allocating sufficient resources without compromising ongoing projects can be difficult, particularly for smaller organizations.
• Mitigation: Establish clear priorities and phased rollouts to balance workloads. Utilize services like SmashBrand’s market mapping to allocate investments precisely, ensuring efficient focus on areas with the highest return on investment.

Market and consumer reception.

The success of repositioning hinges on whether it resonates with the target consumer and aligns with evolving consumer behavior.

• Challenge: Misjudging consumer expectations may result in the repositioning in marketing falling flat, eroding trust and engagement.
• Mitigation: Continuously monitor market perception and adapt based on real-time feedback. Employ surveys, email marketing, and other tools to keep the pulse on existing customers while drawing insights from prospective ones.

Data-driven brand repositioning for low risk and maximum reward.

If you are looking for an agency that can help you define and execute new positioning that attracts more potential customers, we can help. SmashBrand is a brand development agency for CPG brands. Our PathToPerformance™ process guarantees a performance lift.