Repositioning: Changing Minds, Not Just Products
Repositioning changes how customers perceive your existing product. Netflix did this by moving from DVDs to streaming to meet new demand. Don't mistake it for rebranding—repositioning alters the core promise, not just the logo or colors.
Why it exists
Markets are not static. Customer preferences, technology, and competitive landscapes constantly change. A product's initial position might become irrelevant or less profitable over time. Repositioning exists to keep an existing product relevant and growing by adapting its market perception to these new realities.
The mental model
Think of repositioning as changing your product's story, not the product itself. You have an existing asset, but you're changing who you're selling it to and what promise you're making to them. It’s like a character actor known for comedy taking on a dramatic role to change how the industry perceives their range.
How it works
Repositioning involves changing the market's understanding of your product by reworking its narrative, look, and target audience. You take your existing product and shift its focus. For example, McDonald's, once just a burger outlet, repositioned itself to include salads, vegetarian options, and the McCafe to appeal to customers concerned with nutrition and convenience, even displaying dietary information to build trust.
When to use it
Use repositioning when there's a seismic shift in your competitive landscape or consumer behavior. This is necessary when new technology emerges (like streaming vs. DVDs), customer needs evolve (like a demand for healthier food), or you want to target a completely different market segment to unlock new growth. It's a strategic response to a changing world.
When not to use it
Do not confuse repositioning with rebranding. If your brand's values are solid but your logo looks dated, you need a rebrand—a visual update. Repositioning is a deeper, more holistic change of the brand's promise and competitive stance. It's a major strategic risk, not a quick fix for poor sales if the core product itself is the problem.
One canonical example
Netflix began as a DVD-by-mail service. As internet technology and consumer demand for on-demand content grew, it repositioned itself as a streaming service. Later, to compete with other streaming platforms, it repositioned again to become a dominant creator of original content, starting with 'House of Cards'. Each pivot was a repositioning to stay relevant and lead the market, not the creation of a new company.
Interview question
What is the primary distinction between repositioning and rebranding a product?
- a.Repositioning is a tactical response to short-term sales declines, while rebranding is a long-term strategy for market expansion.
- b.Repositioning changes the product's core promise and market perception, while rebranding updates its visual identity and external presentation.Correct
- c.Repositioning focuses on internal operational efficiencies, while rebranding targets external advertising campaigns.
- d.Repositioning involves creating a new product to meet emerging needs, while rebranding modifies an existing product's features.
Why? this is the answer
The card explicitly states that "repositioning alters the core promise, not just the logo or colors" and describes rebranding as a "visual update." Option D is incorrect because repositioning focuses on changing the perception of an existing product, not creating a new one.
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Read the original → brandwell.com.au
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