The recent criticism of the new advertising for Jaguar has focused attention on when repositioning of a brand is necessary and effective. The positioning of a brand is defined by the psychological space the brand occupies in the minds of consumers: the unique identity of the brand in terms of what it is (and is not), what value it provides, and how it differs from competitors.
Good positioning, which is only partially under the control of the brand marketer, carries a variety of benefits for the brand: (1) greater recognition and memorability by consumers, (2) a reason to buy, that is, the value provided by the product, and (3) a clear basis for choice over competitive offerings. Such consumer centric benefits are often associated with greater frequency of consideration of the brand by consumers, greater market share in the relevant market, greater consumer loyalty as measured by repeat purchase, greater willingness among consumers to pay a price premium, and greater financial return for the firm. If you have ever seen an ad and asked what exactly they are advertising, you have seen an example of poor positioning. Hence, the critiques of Jaguar advertising: no car is shown or implied; it looks like rather common ads for fashion or cosmetic products; no reason to buy or even identification of what to buy; different from what?
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The world changes and such changes often include changes in consumer needs, lifestyles, and values, changes in technology, and changes in competitors’ offerings. What was once of value, or a point of differentiation may become less so. Thus, changes in a positioning statement of a brand, repositioning, is often required in response to such changes. There are a number of signals that repositioning might be necessary: a downward trend in sales, eroding margins and/or market share, failure to capture new customers, especially those just entering the market, technology that creates new or better benefits, and loss of differentiation as a result of changes in competitors or competitive offerings, among others.
It is important to differentiate repositioning from rebranding and brand extension. Repositioning involves changing a brand’s message, image, or associations in ways that retain the core identity of the brand. Thus, Crest successfully repositioned itself by differentiating itself as the toothpaste for fighting cavities, a value proposition supported by endorsement of the American Dental Association. More recently, Old Spice changed its image by appealing to younger consumers with its “be like a man” message, while still retaining its associations with an attractive scent, ships, and other elements of its brand. The new positioning did not alienate older users, but did provide reasons for new customers to try the product.
In contrast, rebranding involves changes to the whole identity of a product. It may involve changing the brand’s look and feel, name, logo, associations, or even use. Listerine began life as a surgical antiseptic and was even advertised as a dandruff rinse before establishing its contemporary identity as a mouthwash. Rebranding often involves abandoning the original brand name and any who may still find the brand attractive. It is often done in response to negative associations with the brand. One the other hand, Apple has been a master at evolving its brand identity overtime, starting out as a computer hardware company but evolving into an umbrella for a wide range of digital products and content. Updates of existing elements of the brand, such as logos and fonts, are typically referred to as a brand refresh because they do not change the core identity of the brand. Finally, brand extensions represent efforts to extend product or service offerings into new, different categories. Thus, Crest has expanded from the name of a toothpaste to an umbrella brand for a host of dental hygiene products. Brand extensions almost always involve some repositioning of the original brand because they change how consumers think about the brand, the value or benefit(s) offered, and the points of differentiation.
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It is important for brand managers to understand and clearly articulate what they are trying to accomplish and how they hope to influence consumers regardless of whether the issue is repositioning, rebranding, refreshing, or extending a brand. An especially important consideration is the degree to which any change in current positioning influences current customers even if the intention is to attract new customers. Relevant changes in customer behavior are not just whether existing customers and new customers will buy, but also how often they buy, and what price premium they will pay, if any.
Any change in strategy and positioning needs to include an analysis of the target customers, new and existing, the effect of the change on some relevant behavior, such as purchase or price paid, and the financial implications of the change and resulting market response. Whatever the strategy there needs to be a clear and strong value proposition and a differentiating message. Effects of any change are measurable in advance and the costs of such measurement are modest relative to what is at risk. Change is inevitable; response to change is a choice. In the words of Steve Jobs: “Innovation is the ability to see change as an opportunity, not a threat.”
Contributed to Branding Strategy Insider by Dr. David Stewart, Emeritus Professor of Marketing and Business Law, Loyola Marymount University, Author, Financial Dimensions Of Marketing Decisions.
At The Blake Project, we help clients from around the world, in all stages of development, define and articulate what makes them competitive and valuable at critical moments of change. Please email us to learn how we can help you compete differently.
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