This article provides a detailed response to: What are the challenges in repositioning a well-established brand, and how can they be overcome? For a comprehensive understanding of Positioning, we also include relevant case studies for further reading and links to Positioning best practice resources.
TLDR Repositioning a well-established brand requires Strategic Planning, effective communication, and continuous evaluation to navigate market dynamics and preserve brand equity.
Repositioning a well-established brand is a complex and nuanced challenge that requires a deep understanding of the market, the brand's existing equity, and the dynamics of consumer behavior. It involves changing the target market's perception of the brand to better align with its current or future offerings and strategic objectives. This process can be fraught with difficulties, but with a carefully crafted strategy, these challenges can be overcome.
The first major challenge in repositioning a well-established brand is the risk of alienating the current customer base. Brands build equity over time through consistent customer experiences, quality products, and effective marketing. Altering the brand's position can confuse or disappoint loyal customers, potentially eroding this hard-earned equity. To mitigate this risk, organizations must conduct thorough market research to understand the current perceptions of their brand. This involves analyzing customer feedback, conducting focus groups, and utilizing sentiment analysis tools. The goal is to identify the core values and attributes that customers associate with the brand, which should be preserved or carefully evolved during the repositioning process.
Additionally, organizations must closely monitor competitive movements and market trends to ensure that the new brand position is relevant and differentiated. This requires a dynamic approach to Strategic Planning, leveraging frameworks and templates from leading consulting firms to analyze market data and consumer trends. By understanding the competitive landscape, organizations can identify unique positioning opportunities that leverage their strengths and align with consumer expectations.
Real-world examples of successful brand repositioning include Old Spice and Lego. Old Spice shifted its brand image from being seen as an outdated product for older men to a dynamic, youthful brand through a clever marketing campaign. Lego repositioned itself from a traditional toy manufacturer to a global entertainment brand, expanding into video games, movies, and digital platforms. Both cases underline the importance of understanding and leveraging existing brand equity while carefully navigating consumer perceptions.
Effective communication is critical during the repositioning process. Organizations must develop a comprehensive communication strategy that outlines how the repositioning will be communicated to internal and external stakeholders. This includes employees, customers, partners, and investors. Internal communication is particularly important, as employees must understand and support the new brand positioning to effectively convey it to customers. This involves training and Change Management processes to align the organization's culture and operations with the new brand strategy.
Externally, the organization must craft messages that clearly articulate the reasons for the repositioning and the benefits to customers. This requires a careful balance of maintaining the brand's core values while highlighting the new positioning. Marketing campaigns, public relations efforts, and digital communication channels are all critical components of this strategy. The use of storytelling can be particularly effective, as it allows the brand to connect with customers on an emotional level, facilitating a smoother transition.
For instance, McDonald's repositioning towards healthier options and sustainability practices involved a comprehensive communication strategy that included menu changes, marketing campaigns highlighting their commitment to quality and sustainability, and community engagement initiatives. This multi-faceted approach helped to shift public perception of the brand without alienating its existing customer base.
Finally, repositioning a well-established brand requires continuous evaluation and adaptation. Market conditions, consumer preferences, and competitive dynamics are constantly evolving, making it essential for organizations to remain agile. This involves setting clear metrics for success and regularly monitoring performance against these indicators. Customer feedback mechanisms, social media monitoring, and market research should be integral components of the organization's ongoing strategy development process.
Organizations must also be prepared to refine their approach based on performance data and feedback. This may involve adjusting marketing messages, further evolving the product or service offering, or even revising the brand positioning itself. The key is to maintain a customer-centric approach, ensuring that the brand remains relevant and compelling to its target audience.
In conclusion, while repositioning a well-established brand presents significant challenges, these can be overcome with a strategic, data-driven approach. By understanding and preserving existing brand equity, communicating effectively with stakeholders, and remaining agile in the face of market changes, organizations can successfully navigate the complexities of brand repositioning.
Here are best practices relevant to Positioning from the Flevy Marketplace. View all our Positioning materials here.
Explore all of our best practices in: Positioning
For a practical understanding of Positioning, take a look at these case studies.
Telecom Network Optimization for Rural Connectivity
Scenario: The organization is a mid-sized telecom operator focused on expanding rural connectivity.
Market Positioning Strategy for Infrastructure Firm in Renewable Energy
Scenario: The organization is a key player in the renewable energy sector within the infrastructure industry, facing challenges in differentiating its offerings in a highly competitive market.
Brand Positioning Revamp for Consumer Packaged Goods in Health Sector
Scenario: The company, a mid-sized producer of health-focused consumer packaged goods, is struggling to differentiate itself in a highly competitive market.
Telecom Infrastructure Positioning for Competitive Edge in Power & Utilities
Scenario: A telecom firm specializing in infrastructure for the power and utilities sector is struggling to differentiate its offerings in a highly competitive market.
Positioning Strategy Development for a Renewable Energy Firm
Scenario: A renewable energy company that has made significant strides in the industry finds itself struggling with its positioning strategy.
Brand Positioning Strategy for Midsize Cosmetics Firm in the Luxury Segment
Scenario: A midsize firm in the luxury cosmetics industry is struggling to distinguish itself amidst a saturated market.
Explore all Flevy Management Case Studies
Here are our additional questions you may be interested in.
Source: Executive Q&A: Positioning Questions, Flevy Management Insights, 2024
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
![]() |
Download our FREE Strategy & Transformation Framework Templates
Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more. |