Nowadays, repositioning has become very popular in business. Following the large companies that invested their financial resources in rebranding, medium and small firms started talking seriously about him. Today, many entrepreneurs are trying to "reposition" their products.
Rebranding is carried out from the packaging of the manufactured product to the company logo. Currently, this procedure is practiced by such popular brands as Coca Cola, Pepsi Cola, Ebay, Apple, etc. Other companies also run similar programs.
Conversion label
Repositioning is a set of measures for changing or updating a brand. This may also apply to its component parts. For example, logo and name, visual design and holistic brand philosophy. Repositioning or rebranding (rebrending) is a term of foreign (English) origin.
This process clearly demonstrates that the company has undergone significant changes. However, the brand itself does not change radically. Main trends and motives remain. Successful repositioning allows the company to reach a higher level of development, retain old and attract new customers.
In other words, repositioning is the process of changing the status of a brand relative to the products of other companies that are competitors. Rebranding of a trademark is a kind of response to the inversion occurring in the market of goods and services. The process also starts as a result of the fact that the marketing goals planned by the advertising company are not achieved. It often involves changing all parts of marketing.
Grounds for occurrence
Brand repositioning is an important and serious process, which often crosses out all investments made in the promotion of goods and services made earlier, and can lead not only to an unplanned decrease in any sales, but also damage the company's rating. Therefore, the main thing in an advertising company and marketing is to double-check the need for rebranding. In world practice, there are several reasons for repositioning a product:
- bad and unclear image;
- the emergence of new perspectives;
- updating the program and strategy of the company;
- image that does not correspond to modern trends;
- expanding the target audience;
- the emergence of new competitors;
- any other unexpected circumstance.
Character traits
Repositioning is an indispensable component of brand development, which should fit into the development of any brand’s strategy. This is a lengthy process that completely changes the personality of the structure. It takes place until the marketing network updates the changed product, until new associations about products from customers turn into stable trends.
The main goal of rebranding is either to re-evaluate the target audience, or to change the company's products. This is what repositioning is. The tasks of this procedure depend, first of all, on the purpose of the process. These include the following:
- increasing brand uniqueness;
- improving customer loyalty;
- changing the target audience.
Appointment
Rebranding is a multi-valued process. Even the most inconspicuous details affecting the perception of brand buyers can be of great value. All these nuances are taken into account by manufacturing companies that are interested in promoting their goods and services. Why is repositioning necessary? This process, according to many marketing experts, allows you to:
- increase the uniqueness of the logo;
- increase the number of sales;
- ensure the company's output to the international level;
- increase production scale;
- expand the scope of the company;
- ensure a successful merger and separation of companies.
Stages of creation
Repositioning is an update not only of the components of a brand, but also of the brand itself. These attributes include several components: numbers, colors, words, names, slogans, sounds, abbreviations, symbols. Rebranding is carried out gradually in several stages:
- Marketing audit. The process allows you to evaluate customer awareness of the company's products; realize the popularity of the brand; increase customer loyalty, choose the target audience, analyze the obstacles that prevent the sale of products on the market of goods and services.
- Repositioning the brand. The process of changing the basic characteristics of the product and fixing them in the minds of the target audience.
- Restyling brand attributes. The process of directly changing the logo, slogan and other components of the brand that characterize the company and give an idea of new products.
- Internal and external communication. At this stage, the company introduces new products to the target audience (consumers, competitors, etc.) and reports its main characteristics.
Main strategies
The main objective of the repositioning program is to change the existing product concept. In this case, the existing understanding between the buyer and the manufacturer plays a large role, which can help to achieve high results in a short time.
There are several methods for repositioning products that are used depending on the current situation in the market for goods and services. They demonstrate high results due to professional manipulation of consumer perception and the use of modern market trends. These include the following strategies:
- repositioning of goods;
- image repositioning;
- hidden repositioning;
- explicit repositioning.
Benefit or harm
Specialists advise modern companies to deliberately and reasonably reposition. An analysis of recent marketing research has shown that in the absence of an important reason, intervention in an advertising company is more likely to harm than bring benefits. Many companies change depending on the needs of the target audience and new trends.
However, such a strategy does not always give positive results. Sometimes consumers perceive attempts to follow general trends as a loss of brand uniqueness and consumer-friendly amenities. However, times are changing. Technological progress does not stand still. Today, various novelties in the market of goods or innovations have gained relevance.
Some practical tips
Currently, many buyers perceive the repositioning of goods and services as a negative trend. Negative attitude towards rebranding arose as a result of ignorance of the population. This process is an adaptation to the changing conditions in the market of goods and services. Changes may be minor, but the end result is not always positive. Experts advise to apply to this procedure in those cases when the company’s positions have been shaken and nothing else remains.
Before rebranding, it is necessary to seriously study and analyze the current situation. It is important to understand that the end results are not immediately apparent, but after a certain period of time. Experts advise to pre-evaluate costs, as well as how much time is required for a similar procedure to competitors or companies with similar activities. This will avoid panic when the results do not meet current expectations and make a reliable forecast of the future situation.
Life examples
Repositioning is more than updating a tagline or logo. This is a search for a new offer or its improvement, which directs the target audience, reminds her of the advantages of the company and the uniqueness of the brand. Rebranding (repositioning) implies, first of all, the compliance of brand products with the requirements of modern consumers.
Today, companies like Pepsi Cola, Johnson & Johnson, P&G often practice repositioning. An example of rebranding is the change in the slogan of Siberia Airlines, as well as the “new image” of Russian Railways. In the Russian advertising structure, the breakthrough of the year can be called the repositioning of the Beeline trademark in 2005.
The most radical result is the rebranding of MTS OJSC and other companies that are part of Sistema Telecom holding. The most successful event of the new century is the repositioning of the Schlitz brand of light German beer. The most beneficial to competitors is the change in Avis car rental company.
Product repositioning is an interconnected comprehensive marketing tool that helps to achieve a change in the consumer’s emotional associations with respect to a particular product. This approach affects all aspects of the advertising program, which, under favorable conditions, can greatly change the composition of the market for goods and services.
With the help of repositioning, you can not only modernize your business, but also save the existing one, as well as attract a new target audience. Thus, this is not only a restructuring of old images and trends, but also a new life.