Application: New Market Entry, Brand Extension, Competitive Strategy
Marketers that work with companies that already have strong brands or a company reputation can “reposition” their offer to command the attention of other customer segments, other market niches, or completely different markets. They can convince existing customers, and new buyers, that they have viable new offers.
Repositioning can also, of course, mean moving to a new area of focus in an existing market. Some fall from a premium or heritage position to niche as forces in the market buffet their brand. Others move in a clear and deliberate strategic manoeuvre. British supermarket, Tesco, was started, for instance, as a least cost (“pile ‘em high, sell ‘em cheap”) provider. In the past few decades, though, its innovation, marketing, and impressive management skills have turned it into the unquestioned market leader which, at the time of writing, is also intent on a strong global position.
Repositioning is no small task (as the case study of Virgin Media shows) and the start of this risky process is a clear understanding that the brand exists in the most important place of all: the imagination of its customers and potential buyers. Years of successful business and rewarding transactions for both the business and its buyers have created a valuable heritage; a brand equity. The goodwill towards ...