What Is Brand Repositioning (+ Top Strategy Examples)

Summary

In this video, Stephen Houraghan from BrandMaster Academy explains brand repositioning, outlining why it's crucial for adapting to changing markets and realigning a brand's perception. He highlights key advantages like refocusing target audiences, enhancing competitive advantage, and creating fresh market perceptions. However, he also warns of the potential drawbacks, such as high costs, alienating existing customers, and risking brand equity. Through examples like Taco Bell, Old Spice, and Mailchimp, Stephen illustrates how repositioning can help brands reclaim market share or expand into new opportunities.

Takeaways

• 😀 Brand repositioning helps adjust a brand's perception to better appeal to its target audience.
• 🔄 Repositioning is essential because markets change frequently, and brands need to adapt or risk failure.
• 💡 A successful repositioning involves refocusing the brand to be seen as a more viable option for the audience.
• 📊 One advantage of repositioning is the ability to refocus on the target audience and enhance competitive advantage.
• 🚀 Repositioning can create a fresh perception of the brand, which may not require changes to the product itself.
• 💰 Repositioning can be expensive due to the need for changes across multiple brand touchpoints like websites and ads.
• ⚠️ There's a risk of alienating existing customers if the repositioning strays too far from the brand's original identity.
• 🏗️ Repositioning can put a brand's existing equity at risk, especially if it has a long-established reputation.
• 🌮 Example: Taco Bell repositioned by embracing a young, free-spirited vibe, moving away from a 'cheap' perception.
• 🧔 Example: Old Spice repositioned itself with humor and personality, transforming from an 'old man' brand to a modern men's grooming leader.

Q & A

What is brand repositioning?

Brand repositioning is the process of adjusting or overhauling a brand's perception in the market to better appeal to its target audience. It aims to refocus the brand and change how the market perceives it, making the brand and its offering a more viable option.

Why is brand repositioning important?

Brand repositioning is important because markets are constantly changing, and brands must adapt to these changes to stay relevant. If a brand fails to resonate with its audience or market conditions shift, repositioning can help the brand find a more profitable position and take advantage of new opportunities.

What are some advantages of brand repositioning?

Advantages of brand repositioning include refocusing the target audience, enhancing competitive advantage, and creating a fresh perception in the market. It allows brands to better connect with their audience's needs, stand out from competitors, and reinvigorate their image without necessarily changing their product or service.

What are the disadvantages of brand repositioning?

Disadvantages of brand repositioning include the potential high costs, the risk of alienating existing customers, and the threat to existing brand equity. The process can be expensive, and altering the brand too much may cause loyal customers to feel abandoned or disillusioned. Repositioning can also harm the brand’s established reputation.

How did Taco Bell successfully reposition its brand?

Taco Bell repositioned itself by adopting a fresh, young approach with the 'Live Más' tagline, which emphasized living life on one's own terms. Instead of competing on nutritional value, they offered customers a lifestyle choice. This, combined with refreshed messaging, identity, and upgraded interiors, helped Taco Bell shed its 'cheap' perception.

What strategy did Old Spice use to reposition its brand?

Old Spice repositioned its brand by moving away from its outdated 'old man' image and adopting a humorous, personality-driven approach. The 'Man Your Man Could Smell Like' campaign became a viral sensation, helping the brand become the top men's body wash brand within 12 months, without changing its product formula.

What motivated Mailchimp’s repositioning, and how was it executed?

Mailchimp repositioned itself to expand from being just an email provider for small businesses to a more comprehensive marketing solutions platform. The repositioning involved a bold brand identity revamp and a subtle shift in messaging, allowing the brand to address the evolving needs of its small business audience.

Why might a brand choose not to reposition?

A brand might choose not to reposition if the risks outweigh the potential benefits. Repositioning can be costly, might alienate loyal customers, or damage the brand’s existing equity. Brands that have already staked a valuable claim in their audience’s minds may not need to undergo such a drastic change.

What factors should a brand consider before deciding to reposition?

Before repositioning, a brand should analyze its target audience, market conditions, competition, and current brand equity. It should determine if there is a need to adapt to new opportunities or address weaknesses, while weighing the costs, risks, and potential impact on its customer base.

How does repositioning affect a brand’s competitive advantage?

Repositioning can enhance a brand’s competitive advantage by providing a more up-to-date understanding of the market and competitors. By adjusting its messaging and positioning, the brand can strengthen its perceived edge, making it more appealing and relevant to its target audience.