Repositioning
Marketing is an essential aspect of business that is solely responsible for attracting target customers to any brand developed by a company. This makes it a very crucial part of business operations since proper marketing establishes a good product image with the target consumers. Following this, a company can create its own market niche, which can also be referred to as positioning. However, the image created during may, over time, influence targeted consumers to form positive or negative perceptions about their brands, leading to loss of market share. This means that a brand can lose relevance due to changing dynamics in either consumers or the market, creating a risk of losing customers to competitors. This can also be prompted by an organization’s need to explore new opportunities in the market. Repositioning, therefore, involves coming up with a fresh and innovative brand promise to restore or improve sales volumes by modifying brand identity for consumers (Belch & Belch 2018, 62). Reputation is, for this reason, a very crucial aspect that companies should handle with caution since it is the thread holding the business’s health together. Brand repositioning can thus be achieved by either modifying some elements of the specific brand or even altering the target market altogether.
General Motors’ (GM) Buick brand product and marketing developers took on a successful repositioning position meant to attract younger consumers. The Buick model had for long been associated with older adults, and the repositioning strategy entailed regeneration by adopting a stylish design to attract the younger population. The marketing team at GM rebranded the vehicle, making it trendy as a luxury vehicle to achieve this feat. This increased their sales and market share showing that it was a successful repositioning campaign (Belch et al. 2018, 62). The advertising campaign refreshed the model’s visual identity and ultimately succeeded in creating a better appeal for both older customers and newcomers, especially the millennial generation.
Repositioning a brand can, however, also be quite a daunting and challenging process, as was evidenced by JCPenney’s attempt. The company was not faring well among its competitors and thus decided to embark on repositioning by introducing a fresh, young, and modern exterior to their brand for younger customers. JCPenney, as a result, embarked on an upgrade of not only its products but also its stores. This strategy was not successful in the long run since it was unable to influence the entrenched perception by younger people that this was an old people store. At the same time, the initial target consumer, basically older people were completely locked out. Repositioning should, therefore, involve retaining the current market share while at the same time attracting new business for it to be deemed a success (Belch et al. 2018, 62). This resulted in not only the loss of existing customers, but it also failed in attracting the targeted market segment.
Repositioning is a marketing and advertising activity that is conducted through either modification of brand aspects or targeting new market niches. General Motors’ (GM) Buick brand is one product that successfully achieved the goals of its repositioning campaign. The brand was able to attract a new market share in younger people by developing a stylish vehicle that demystifies the vehicle as an old people vehicle. JCPenney’s attempt at repositioning was, however, not successful. The company failed to consider its primary existing target market and, at the same time, was unable to appeal to its intended younger consumers. This was because the elderly customers felt they no longer belonged there and thus lead to a loss in sales.
References
Belch, G. and Belch, M., 2018. Advertising And Promotion: An Integrated Marketing Communications Perspective. McGraw-Hill Education.