Blog 48: Why, when, and how to reposition a product?

In blog 47, we discussed 'Customer Product Experience', product positioning strategies, and their various benefits.

Market changes or customer preferences might force changes to our product's position. Product repositioning is a quicker and more cost-effective way to correct course.

Why do we need to reposition our product for growth?

· To replace an initial position that failed to gain traction.

· To refine a product and build affinity. Combine features of products, in different categories, to form a refined product.

· To make the position more sharper, moving away from being too broad or diluted.

· To appeal to a different target market. Changes include pricing, features etc.

· To satisfy changing customer needs.

· To set apart from the intense competition.

· To rejuvenate a dying product. Repositioning generally occurs in the decline stage of the product life cycle (read blog 49 to learn more).

· To move away from the current consumers who were not the desired target. This can improve perceived brand image, correct negative perceptions, etc.

When should it be done?

If a product has gained traction, major repositioning could backfire. It may push away core users, cause confusion in the minds of existing or new customers, or eat away considerable time and financial resources.

However, if you do decide to go for it, it is important to conduct a detailed market research:

· Understand changing consumer preferences

· Review the competitive landscape

· Meticulously plan the repositioning execution plan

· Have an effective communication plan (with customers, stakeholders) to convey this

Minor repositioning are sometimes welcome. As it is a move to better align with the product’s aspirational position.

How?

There are broadly three ways. Firstly, reposition the same product to address a different persona (read blog 14 to know more about personas). Secondly, reposition the same product to address a different use case. Thirdly, a combination of both i.e. address a different persona for a different use case.

Note:

Repositioning vs. pivoting: Repositioning can be achieved without any significant or immediate product changes. For example, a product analytics company could reposition itself into a marketing analytics company. Whereas, pivoting requires more significant changes, is more expensive and time intensive.

Jump to blog 100 to refer to the overall product management mind map.

Source:

https://insight.kellogg.northwestern.edu/article/tdos-and-donts-of-repositioning-your-brand

https://blog.logrocket.com/product-management/how-to-reposition-a-failing-product/

All the best! 😊