Product repositioning can be a high-stakes game. With 80% of new products failing to meet sales targets after launch, even the most established brands lose ground if they miscalculate their product positioning strategy. Still, many overlook the risks, assuming past brand success guarantees future performance. That assumption could be costly in today’s fast-evolving and short consumer attention market.
Misaligned product marketing and a poorly executed repositioning strategy can alienate your target market, leading to declining sales and irreparable brand damage. The question isn’t whether you need to adapt but how you can do it without losing what made your brand valuable in the first place.
This article provides a detailed guide on strategic product repositioning, revealing the hidden risks and critical insights to avoid costly mistakes. Don’t let your next move be the one that costs you everything. Read on!
What is Product Repositioning?
Successful Product repositioning is a strategic move to shape how consumers perceive a product line. It involves tweaking various aspects to attract a new target market. For example, Zing Zang reinvigorated its brand presence, boosting taste appeal and premium perception while retaining its legacy appeal.
The new design drove a 7-point increase in purchase intent, helping Zing Zang capture market share from major competitors and positioning it for portfolio-wide growth. Such product repositioning examples show how brands can adapt their marketing strategy to stay relevant.
Repositioning a product requires thorough market research and consumer testing. Companies must identify opportunities for tangible repositioning that match consumer needs to enhance their brand repositioning strategy.
Product Line Repositioning vs. Brand Repositioning
Brand repositioning and product line repositioning differ primarily in scope and focus. Brand repositioning involves changing consumers’ overall brand perception. This can include altering the brand’s values, personality, or target audience to enhance brand equity and align with market demands. The goal is to create a new brand positioning that resonates better with consumers.
In contrast, product line repositioning focuses on a particular product within a brand’s portfolio. This may involve modifying product features, targeting a different market segment, or adjusting messaging without changing the brand identity. Understanding the distinction between rebranding and repositioning is crucial for an effective marketing strategy, ensuring that both approaches effectively meet consumer needs.
Product Rebranding vs Product Repositioning
| Aspect | Product Rebranding | Product Repositioning |
| Definition | Changing a product’s visual identity (name, logo, packaging) to refresh or modernize its appearance. | Shifting the product’s market position by changing its value proposition or target audience. |
| Focus | External elements: name, logo, packaging, or messaging. | Strategic elements: target audience, perceived benefits, product use, features, etc. |
| Objective | Modernize the product’s image, address negative perceptions, or appeal to a new demographic. | Change how the product is understood in the market to stay competitive or enter new segments. |
| Example | Ronzoni Pasta rebranded its packaging and brand strategy, resulting in over 90% purchase consideration among consumers. | Hälsa introduced the new Zero Sugar oat milk yogurt, which has only 90 calories per serving and can be used as a base for making healthy probiotic smoothies, dips, sauces, salad dressings, and many other plant-based recipes at home. |
The Risk of a Reposition Gone Wrong
Product repositioning can be an excellent tool for maximizing brand equity and market share. But it comes with risks. A failed repositioning strategy will ultimately alienate the current brand positioning, resulting in declining sales performance and reduced equity. These are some significant risks associated with a failed repositioning process.
- Misalignment with Current Brand Positioning: If a brand attempts to drastically shift its identity, it risks losing its existing customer base, which may feel disconnected from the new image.
- Negative Customer Perception: If the repositioned product line or brand image fails to meet consumer demand, it could lead to backlash from consumers and the media.
- Increased Competition and Market Saturation: As brands reposition their products, they often enter crowded markets with fierce competition. The change can dilute their unique selling propositions and make it challenging to establish a distinct brand position in consumers’ minds.
- Resource Allocation and Financial Risks: Repositioning a product often requires substantial investment in marketing, research, and development of new products. If these new products do not perform well, the financial repercussions can be severe, leading to budget cuts in other areas or even layoffs.
Example of Failed Repositioning Attempt
Tropicana attempted a major repositioning by redesigning its packaging, removing the iconic orange and straw image in favor of a more generic look. This $35 million initiative backfired spectacularly, leading to a 20% drop in sales within two months as consumers struggled to recognize the product on shelves.
The new design failed to resonate emotionally, losing loyal customers who associated the original packaging with quality and freshness. Ultimately, Tropicana reverted to its classic design, highlighting the critical importance of understanding consumer attachment to brand identity and the risks of drastic changes in positioning.
Benefits Of Repositioning A Product The Right Way
Repositioning a product correctly offers several benefits, including access to a new market and attracting potential customers. Successful brand repositioning involves crafting a clear positioning statement that aligns with consumer needs and preferences. These are some of the main benefits of an impactful product repositioning process:
- Access to New Markets: Opens opportunities to target different demographics or geographic areas.
- Increased Product Trial: Repositioning refreshes the brand’s appeal, drawing in new consumers who may not have considered the product before due to its ingredients or features.
- Updated Marketing Mix: This mix allows for adjustments in product pricing, distribution, and promotion strategies to better meet consumer needs.
- Improved Branding Strategy: Strengthens overall brand identity and aligns it with current market trends and consumer expectations.
- Competitor Differentiation: Helps the product line stand out in a crowded marketplace, enhancing competitive advantage.
Example of Successful Repositioning
Blue Plate refreshed its packaging to support national expansion and highlight its New Orleans heritage and unique “All Yolk Recipe.” Initially launched in 1927, the brand aimed to reinforce its premium positioning while appealing to a broader audience beyond its Southern roots.
Using a data-driven design approach, SmashBrand created packaging that combined historical elements with a modern touch, boosting shelf appeal and purchase intent by 12 points. This repositioning effort enhanced consumer perception of quality and positioned Blue Plate to capture a more significant market share and justify premium pricing.
Factors to Consider When Repositioning an Existing Product
Repositioning an existing product involves strategic planning and considering various factors to ensure success. Here are some of the most crucial factors to keep in mind when repositioning an existing product line:
| Factor | Description | Challenges |
| Brand Architecture Implications | Repositioning may require adjustments in brand architecture to align with the new positioning. This includes evaluating how the product fits within the overall brand portfolio. | Misalignment can confuse consumers about the brand’s identity, potentially diluting brand equity if not appropriately managed. |
| Balancing Repositioning Without Alienating Customers | Maintaining a connection with the core customer base is critical while introducing new elements to attract a broader audience. | Overemphasis on new positioning may alienate existing customers, leading to backlash and loss of loyalty. |
| Managing Internal Resistance | Internal stakeholders, including employees and management, may resist changes due to fear of the unknown or attachment to the current brand image. | Effective communication and alignment on repositioning vision are crucial to overcoming internal resistance, especially when differing opinions within the organization exist. |
| Impact on Supply Chain | Product positioning changes may necessitate supply chain alterations, including sourcing, production methods, and distribution channels. | Disruptions in supply chain processes can lead to delays and increased costs, complicating the implementation of the new positioning strategy. |
| Financial Implications and Managing Expectations | Repositioning often requires significant investment in marketing, product development, and potential rebranding efforts. Managing expectations regarding the return on investment (ROI) is essential. | The financial risk is considerable; if repositioning fails, it can result in substantial losses and damage to the brand’s reputation. Organizations must carefully assess cost-benefit ratios before proceeding. |
How To Identify The Need For Product Repositioning?
Identifying the need for product repositioning involves analyzing internal and external factors affecting your product’s performance and market relevance. The following are the key indicators that signal when it’s time to reposition your existing product:
Shifting Consumer Preferences: If your target market’s tastes, values, or needs have changed (e.g., a growing demand for sustainability or health-conscious options), your product may no longer resonate with them.
Declining Sales or Market Share: A consistent drop in sales can signal that your current product positioning no longer appeals to consumers or that you face tough competition.
Competitive Pressure: If competitors are gaining ground with innovations or marketing strategies, repositioning might be necessary to stay competitive and differentiate your product.
Brand Misalignment: If your product’s messaging or value proposition no longer aligns with your brand’s overall identity or future vision, repositioning can help you regain focus.
New Market Opportunities: Identifying underserved or emerging markets can reveal a need for repositioning to capture new audiences.
Creating Your Product Repositioning Strategy
Rapid market changes can quickly render even a strong product irrelevant. A data-driven product repositioning strategy is crucial to staying ahead. By aligning your brand messaging with current consumer needs, you can effectively boost brand awareness and ensure your new product resonates with its target audience.
Unlike tangible changes, intangible repositioning—such as shifting perceptions or emotional connections—can profoundly impact market success. A successful brand repositioning example could be a snack brand transitioning from indulgence to wellness-focused, responding to health-conscious trends.
The following are the steps to developing an effective product repositioning strategy:
Understand the Market and Consumer Insights
The first step in an effective product repositioning strategy is gathering comprehensive market data and consumer insights. Use qualitative and quantitative research to analyze trends, purchasing behaviors, and consumer pain points. Understanding what drives your target market allows you to identify gaps between current perceptions and new opportunities. This involves leveraging tools like POS data, surveys, and consumer panel testing to uncover actionable insights.
Evaluate Competitor Landscape
Next, assess your competitors. Examine how similar products are positioned and their strengths, weaknesses, and market penetration. This step ensures that your product positioning stands out in a crowded market. Identify competitive advantages your product has that can be leveraged, such as unique benefits or attributes that align with changing consumer needs.
Align with Brand Positioning and Core Values
Repositioning should align seamlessly with your brand’s core values and broader identity. This ensures that your new strategy maintains consistency while evolving with market demands. Use your brand positioning as a guide to ensure the product fits within your overarching brand promise. Misalignment can confuse customers or dilute brand equity.
Refine Product Features and Benefits
Repositioning may require updating the product itself. Assess whether changes to product features, packaging, or formulations are needed to match the new target market or repositioning goals. This can involve making the product healthier and more eco-friendly or addressing new consumer needs while staying true to its core strengths.
Develop a Compelling Messaging Framework
Crafting a clear, compelling message is critical. Your messaging should reflect the repositioned product’s new value proposition and resonate with the target audience. Focus on the product benefits that align with current consumer needs. Every touchpoint, from advertising to packaging, should communicate this new position consistently.
Test with the Target Market
Before launching, conduct market testing to validate your new positioning. Use consumer testing to evaluate the effectiveness of your messaging, product packaging, and consumer reception. This phase allows for iterations and refinements based on empirical data, reducing the risk of failure post-launch.
Execute and Monitor Performance
Once your strategy is finalized, launch the repositioned product with a coordinated marketing plan. Post-launch, monitor key performance metrics such as sales growth, market share, and brand perception. Gather feedback and data to refine your approach to ensure your repositioning drives sustainable, long-term success.
Measuring The Impact of Product’s New Market Position
Positioning isn’t a one-time process. This means that companies must iteratively measure and tweak the performance of their products according to evolving market needs. Measuring the impact of the product’s new market position provides an opportunity to fine-tune the strategy and maximize product ROI. Here are the necessary steps to follow:
Define Key Performance Indicators (KPIs): Sales growth, purchase intent, market share, brand awareness, and consumer sentiment. Make sure your KPIs cover both short-term gains and long-term brand equity.
Monitor Consumer Perception Shifts: Leverage surveys, focus groups, and social listening tools to measure how consumers perceive the new product position. Track changes in brand messaging reception and whether the repositioning has shifted their views or purchase behavior.
Analyze Sales and Market Data: Compare pre- and post-launch sales data to evaluate how the new product position influences buying patterns. Look whether you’re gaining ground in the target market. Monitor increasing market share against competitors.
Assess Brand Awareness And Recall: Track brand awareness metrics. The goal is to measure whether consumers recognize the repositioned product and how it compares to previous market positioning.
Evaluate Long-Term Loyalty and Retention: Analyze customer retention rates. Measure repeat purchase rates and the lifetime value of customers post-repositioning to see if it attracts not just one-time buyers but sustained loyalty.
SmashBrand Repositioning Case Study
SmashBrand helped reposition Aspire Energy to target the 70% of U.S. women unfamiliar with energy drinks, addressing their need for clean, jitter-free energy. Through research-driven insights, SmashBrand revamped its packaging, marketing, and website to emphasize its zero-sugar, 80mg natural caffeine formula, appealing to women seeking healthier alternatives.
With 65% of its customer base now being women, Aspire’s vibrant new packaging features bright colors and fruit vignettes, making it easier to identify flavors. Aspire’s campaign promotes sustained, smooth energy throughout the day without the crashes or jitters associated with traditional energy drinks. This repositioning strategy has helped Aspire stand out in a male-dominated market, driving loyalty and introducing healthier energy options to a broader audience.
Frequently Asked Questions
How Much Of A Budget Should Be Allocated For Repositioning?
Budget allocation for repositioning depends on the scale of the effort and market context but typically ranges between 10% and 25% of your annual marketing budget. This covers consumer insights, strategy development, design, testing, and deployment.
For data-driven, low-risk/high-reward outcomes, like those SmashBrand guarantees, the investment is focused on ensuring performance through strategic testing and iteration, reducing the risk of wasted spend.
What’s The Difference Between A Full Repositioning And A Product Refresh?
A full repositioning involves shifting how a brand or product is perceived in the market, often targeting new audiences, changing messaging, and potentially altering the product itself. In contrast, a product refresh focuses on updating visual elements to keep the product relevant without altering its core message or market position. Repositioning aims for a long-term market shift, while a refresh is a tactical adjustment to maintain consumer interest.
How Long Does It Take To See The Impact Of A Repositioning Strategy?
The impact of a repositioning strategy typically begins to show within 6 to 12 months. This timeline allows for the strategy’s implementation, including branding, packaging, marketing efforts, and consumer response changes. For significant market shifts and long-term growth, it may take 12 to 24 months to fully evaluate the success through metrics like sales growth and brand perception.
How Do We Validate The New Product Positioning Before Launching It To The Market?
Validating new product positioning before launch involves data-driven testing to ensure market fit and minimize risk. SmashBrand uses a stage-gated approach with consumer-focused testing at each stage. Key validation steps include:
- Consumer Insights: Gather data on consumer preferences and behavior.
- Concept Testing: Present the new positioning to target audiences for feedback.
- PREformance® Testing: Simulate real-world buying scenarios to assess purchase intent.
- Iterative Refinement: Adjust positioning based on test results to optimize impact before launch.
This ensures the positioning resonates with consumers and performs in-market.
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