What is Repositioning?

[vishakha-vartak]

Repositioning is a process by which a company strategically changes the distinct image and identify that its product or brand occupies mind of customer. Companies do so when consumer get used to original positioning and it no longer stands out in their minds.
Ex: GE repositioned itself as an International brand by focusing their public attention by wind and water turbine they produce (sustainable energy production).

[chirag-garg]

Take examples like Honda or Hyundai. These car manufacturers started with cars that sold because they were a cheap alternative. They were not considered great cars or high quality, but that was part of their brand.

Then of course, over time, as product quality increased, they began to be see as a higher quality product. So Honda cars are often respected for their quality, often been slightly higher in price that competing Japanese brands.

This is the example, where how we think of a brand overall impacts on our decision to buy. Do we see a car brand of good quality, value for money, cheap or stylish? There is a reason why many companies by other brand cars, like Humvee, or Mini, so that they can diversify their brand image.

Your strategy is about changing your product, marketing in a coordinated way to ensure that these match. Take for example, if a restaurant chain wants to move up or down the price ladder, they need to do so in an intelligent way. If they just increase the price, it will drive away many customers, while failing to pick up new ones. At the same time, merely changing your market, without changing the product will not create the desired effect.