Repositioning is defined as altering the position of a brand or product in the minds of the customer relative to the offerings of the competitive product. It is a very subtle and difficult process as the brand needs to change the target market’s understanding of the product.

The brand positioning of any brand is based on the target market, the benefits to the customers and the market situation. The brand positioning for any brand should be unique and should set apart a brand from its competitors.

Reason for Repositioning

The company decides for the repositioning of the brand due to low or declining sales because of increased competition in the market, loss of the customers, retarded benefits, innovation or better technology. The actual reason for declining sales could be faulty brand positioning, poor distribution or poor promotional strategy.

Here are some important reasons behind repositioning:

An Incline in Competition

Sometimes, strong competition can prove to be “unhealthy” for many brands. That said, the customers may forget a specific brand when there are “hundreds” of options around. In that case, repositioning becomes almost compulsory to highlight the advantages a brand can still offer.

Faulty Positioning

It is possible that a brand is under-positioned; i.e., it fails to connect with its customers emotionally and psychologically. Or a narrowly defined brand can also impede business growth. Repositioning becomes important in both cases.

Product Evolution and customer Trends

With the constant technological advancement around, customer trends also change regularly. Customer preferences changes with time, and brand repositioning become important for a business to survive and grow. Moreover, when a brand makes significant changes in its product(s), repositioning can help in introducing those changes in a better way.

Environmental Changes

Apart from customer trends, environmental changes can also force businesses to reposition. For instance, changes in government policies, industrial changes, economic conditions, and technological advancements can also trigger repositioning.

Failed Extensions

Sometimes brand repositioning becomes important due to brand extension. Brand extension is a marketing strategy where an already established business launches a new product in the same or new category.

However, sometimes brand extensions do not work as planned. This can hurt a brand’s already created image as well. In these situations, brand repositioning becomes important to regain the lost advantage.