New year, new world...NEW POSITIONING?
2020 is drawing to a close, and a lot happened this year. Businesses have had to adapt to mandated lockdowns and adjust their strategy. The question becomes, what can businesses expect in the new year? How will they need to adjust to be successful?
To stay relevant, brands may need to reposition themselves in the wake of the global pandemic that shifted how consumers viewed the world. Instead of going out, most consumers increased their online approach to life.
Online shopping saw a 53% increase as more consumers bought products and necessities online versus in-person. This shift in behavior should not be ignored. Instead, repositioning should become a key conversation as you create your marking plan for the new year.
What is brand positioning?
Brand positioning is the use of specific messaging and marketing tactics to influence how consumers perceive a product in their minds.
Brands should strive to have consumers see them as unique and stand out from the competition. When determining your positioning, keep the consumer in mind. Consider, who is the target audience for a product, what problem does your product solve, and why should consumers pick you over the competition.
From these questions a positioning statement can be created to kickstart the rest of your marketing strategy. A positioning statement is a document for internal use that highlights how the brand can bring value to the marketplace. These statements should be short, simple, and clear to ensure it can be easily understood by everyone in the company, allowing for a cohesive, resounding impact on the consumer.
Is it time to reposition?
Sometimes your original positioning is no longer effective for your brand. That’s okay, and if that happened to you this year, you are far from alone.
Changes in the market and consumer activity can require you to reposition specific products to rekindle consumer interest. One main indicator that a reposition is needed is if a product stops selling all-together. While there may not be anything wrong with the product itself, a shift in consumer activity and the state of the market can result in a product becoming obsolete in its current space.
An increase in competition also may indicate that it’s time to reposition. New products enter the market every day. If a similar product is introduced that performs at a higher standard or costs substantially less, it becomes a threat to other companies. Since brand positioning should involve being the best in the eyes of the consumer, a reposition can convince consumers to stay loyal to a single product.
Internal factors such as updating a product and targeting a new audience should also involve a reposition. For example, Domino’s expanding their menu to include items such as sandwiches, wings and pastas. They could no longer call themselves “Domino’s Pizza” because they updated their product by offering more variety. In updating their product they also had to target a new audience to see them more than just a pizza company.
No matter when a reposition needs to occur, it’s not an easy decision to make or an easy task to execute. But it can make all the difference in the marketplace.
How to reposition your product or brand:
The first concern with repositioning is to identify what aspect of your current positioning needs to change. Many of these shifts are especially relevant as the pandemic has shifted the ways consumers buy products.
Virtual options of physical products: With the increase in online shopping, e-commerce has become a lifeline for brands by providing more options to buy. Consumers want to be able to buy a product at their convenience, adding virtual products makes this possible.
Shift products from B2C to B2B: For example, if a brand normally markets products to be sold exclusively in-person at certain retailers, they may no longer be relevant for consumers. But, a similar brand may be in need of that particular product and will be willing to buy a large quantity for the office. By shifting the business model, a brand can still sell their products even if the target consumer has lost interest.
New unique value propositions: Another aspect of repositioning involves an overhaul of a brand’s message to consumers. For example, if a brand wants to be seen as more eco-friendly, an emphasis should be placed on using more recycled materials in packaging or reducing carbon emissions within the brand’s mission statement.
The simple thought of changing a product or brand that took years in the making is hard. That is why we are here to help! Let us guide you through repositioning to help kickstart your new year with success.