Brand repositioning is the process of redesigning the activities of a brand in a way that is more relevant to the proposed needs of the customer base. The update concerns various aspects of the company’s activities – first of all, it is the update of the brand’s message and value system, as well as the renovation of the marketing strategy. Considering the examples of repositioning major brands, it becomes clear that this practice is used to make companies more in line with the surrounding market reality and demographic demand. The reason for the need for repositioning may be a decrease in the number of purchases and a decreasing target audience. The need for renewal may be dictated by changes in the industry and the resulting discord between the company’s operations and its positioning.
A striking example of repositioning is observed in the updated Taco Bell brand. Initially associated with cheap Mexican fast food, this restaurant chain has upgraded its menu and design. At the moment, they have opened new restaurants in the city with open kitchens and an improved menu, raising the status of cuisine and service (Assenza & Lewis, 2019). At the same time, the brand retained its target audience – despite the increased status of the place, it still focuses on the youth audience. By distributing advertising through social media, Taco Bell has managed to change its identity without losing the recognizable and human features of its brand.
Brand repositioning can also be a response to external transformations in the market. Streaming music service Spotify experienced a drop in revenue with the onset of the pandemic and a decrease in ad requests, in connection with which it repositioned. The app has focused on developing original content, podcasts, and unique playlists. By becoming a content developer in its own right, Spotify has only strengthened its position in the music industry. All this shows that adaptation to new economic realities may require a more versatile approach and expansion of professional horizons.
References
Assenza, P., & Lewis, M.S. (2019). Can Chipotle compete by delivering “food with integrity”? The CASE Journal, 15(4), 233-252. Web.