• Repositioning helps in targeting new audience segments with an enhanced brand perspective. 
• Brands reposition themselves to a better market for multiple benefits. 

The core of “Reposition into a Better Market” is establishing the brand in a different location in the customer’s consciousness for better results. The strategy revolves around a refined version of repositioning and focuses on finding a more suitable marketplace or segment for the product or service.

Before deciding to incorporate this marketing strategy, it is essential to note that the brand will lose the market it is already in. Moreover, a brand cannot occupy two positions at once, so it should be clear about the position it wants to occupy in the market. There should also be consideration of the retaliation from the competitors in the new market. 

Incorporating this marketing strategy provides multipronged benefits. By targeting the niche market, a brand might face less competition, making it easier for them to stand out. Understanding the specific needs of new audience coils allows marketers to tailor marketing messages and campaigns. Eventually, it could make the brand a go-to solution in a specific market segment. 

How did Harley Davidson Successfully Incorporate a “Reposition into a Better Market” Strategy? 

Harley Davidson is an iconic motorcycle brand and a prime example of successfully incorporating the “Reposition into a Better Market” strategy, boosting brand awareness, engagement, and revenue. Now, Harley Davidson is synonymous with freedom, adventure, and individuality and is attracting a broader audience segment.

Understanding the Challenge & Repositioning Strategy

Between the 1990s and 2000s, Harley Davidson realized that its core customer base was aging, and its brand image was tarnished by being associated with outlaw biker culture. This scenario limited the brand’s appeal to the younger audience and broader demographics. 

To solve this problem, Harley Davidson used a repositioning strategy. They moved away from the “outlaw biker” image and subtly focused on core values like freedom, adventure, individuality, and open-road experience. This allowed the brand to resonate with a broader range of riders, especially those who desired escape and self-expression. 

Repositioning the Brand

Although the brand is known for its iconic large cruisers, Harley Davidson introduced new motorcycles to reposition itself. These included Street motorcycles, which were smaller and more affordable; sportsters, which were lighter and more agile; and electric motorcycles, like LiveWire, which were targeted to younger, urban riders and environmentally conscious consumers. 

Through these endeavors, the iconic motorcycle brand cultivated a strong sense of community and lifestyle. Marketers went the extra mile to organize rallies, tours, and events to celebrate the rider’s experience and camaraderie among riders. Eventually, this fostered brand loyalty and attracted new customers seeking a compelling sense of belonging. 

By incorporating this marketing strategy, Harley Davidson was able to tap into a broader audience. The campaign allowed the brand to reposition itself from featuring rugged bikers to depicting a wide range of bikers. Commercials also included women, young adults, and minorities, providing obvious benefits for the brand. 

The Impact & Underlying Challenge

The repositioning strategy provided multiple benefits for the Harley-Davidson brand. It attracted a new, younger demographic and procured a diverse customer base, which ensured long-term growth. It enhanced the brand image and moved from an association with a rebellious subculture to a positive and aspirational lifestyle. 

However, it is essential to understand that repositioning is an ongoing process. Even if this strategy had multiple benefits for Harley Davidson, it needs help balancing legacy with change. Its core customers are feeling alienated by this shift. Moreover, the motorcycle brand is fiercely competitive, and the brand has to innovate and evolve with respect to consumer preferences. 

What is the “Reposition into a Better Market” Strategy? 

Repositioning into a better market is a strategic tactic specifically designed to change how the target audience perceives a particular product, service, or the entire brand. The strategy revolves around adjusting the offerings and narrative to better align with the customer needs and wants, making a competitive advantage in the marketplace.

Why Should a Brand Consider Repositioning? 

There are several reasons why a brand must consider incorporating this marketing strategy to reposition itself. One significant reason is declining sales and market share; if the current plan is not working and sales are plummeting, repositioning can help reach new niches and a different audience segment. 

Another reason could be shifting customer needs. Markets and consumer preferences evolve constantly, and repositioning can ensure that offerings stay relevant and address current needs. Increased competition makes it hard for a brand to stand out while developing new products or features can better reach target markets with repositioning. 

How to Implement a Repositioning Strategy? 

Repositioning requires extensive market research and analysis. Marketers must understand their current market positioning and how customers perceive the offerings and brand image. Furthermore, they should analyze the competition, their strengths and weaknesses, and focus on identifying the requirements of target markets.

Marketers can then move on to define the new value proposition. It is important to showcase your unique benefits that competitors don’t. Understanding how a brand’s offerings solve consumers’ problems can help in curating a clear and concise message that resonates with the target audience. 

Different Repositioning Strategies

Brands can opt for numerous repositioning strategies to target a better market. They can incorporate product or service adjustments, such as modifying features, introducing product lines, or changing pricing strategies. Marketers can refine and tune the marketing message, brand image, and communication channels to establish better connections with the target audience. 

Repositioning can be done to target new market segments, expand reach and offer solutions that resonate with the new audience. It can be done by repositioning brand messages, portraying a compelling narrative, and using channels to showcase how this repositioning would benefit existing and new customers. 

Pros and Cons of “Reposition into a Better Market” Strategy

Similar to every other marketing strategy, this repositioning strategy has pros and cons, as discussed below. 

Pros

Finding a market with a better fit leads to increased sales and market share. Repositioning also helps address negative brand perception or outdated image and replace it with a stronger brand identity. When a brand aligns the offering according to customer needs and market demands, it helps create a satisfying customer experience.

Entering new markets exposes the brand to fresh customer segments and revenue streams, providing compelling growth opportunities. Repositioning makes a brand stand out from the competition, carve a unique space, and avoid head-on competition. 

Cons

Repositioning is a complex procedure with multiple variables; effectively implementing this strategy requires careful planning and execution. Incorporating this strategy could be expensive and time-consuming and involve challenges in marketing materials, branding narrative, sales training, product development, etc.

If the repositioning is drastic, it could alienate the core customer base by confusing them about the brand identity. Gaining enough traction in the new market requires building brand awareness and establishing trust with new customers. Also, there’s no guarantee that repositioning will be successful, and it has the potential to backfire. 

In conclusion, the repositioning market strategy is a powerful marketing tool with multiple benefits. It can increase brand awareness, engagement, and image, reduce competition, and boost customer loyalty. However, marketers must conduct proper market research, reframe the value proposition, and educate consumers about repositioning efforts and objectives.