Customers and the market are ever-changing. Small businesses need to be in tune with these changes and adjust themselves accordingly to stay relevant. In some cases, the market changes so much that businesses must undergo repositioning.
Business or brand repositioning looks different to every company, but its impact is similar across the board. Repositioning allows an existing business to adjust to market fluctuations and remain successful over time.
Understanding what repositioning is
A brand’s positioning refers to the “place” the business occupies in the market. For example, a company might operate a B2C position and target its products to middle-class women. That business will become known for operating within that space of the market.
Repositioning is a strategy that businesses and brands of all types can use to shift their products, services and operation strategies to a new “place.” It involves “repositioning” the business within the market to serve a different customer base, apply products in new ways or adjust the way it serves customers. Building off the previous example, that company might reposition itself by shifting to a B2B operation and selling its same products to businesses rather than consumers. Or, it might adjust its prices and messaging to appeal to a more luxury demographic.
To make this kind of shift, a business needs to reevaluate its branding, its products or services and its strategies for reaching customers. By making changes, the business will adjust how customers perceive its brand and products moving forward. This often requires a shift in your business’s messaging, the product’s price and your marketing strategy.
Why a brand might need to reposition
Brands reposition all the time, and there doesn’t have to be a single reason for the change. However, many small businesses decide to reposition in response to market changes, whether positive or negative.
One prominent market influence these days is the uncertainty of the economy. Inflation has taken its toll on consumer spending, and businesses need to find ways to stay afloat. Some brands have chosen to shift toward business customers or revamp their products to remain competitive among consumers.
Another common reason for brand repositioning is a new market opportunity. Businesses that listen closely to their customers might discover a new niche they can fill with their products. A customer review might reveal a new application for a product that an owner hadn’t considered before. Or, it might indicate a pain point that the business can address immediately. Repositioning can help businesses take advantage of these opportunities for greater market share and a leg up over the competition.
Additionally, some businesses reposition their products because they’re simply no longer relevant in their current application. They might be experiencing declining sales or are having trouble keeping up with competitors. In this case, repositioning can breathe new life into older offerings.
Fund your business repositioning effort
When your business is in need of a dramatic shift, make a plan to adapt. Identify your current status in the market and create actionable steps to update or shift your products or business for the future.
Of course, repositioning does come at a cost. But investing in a reposition now can pay dividends for your business later! Whether you have savings or need a loan or cash infusion, don’t wait to make the changes your business needs to thrive. Tenet Financial Group can connect your small business to financial products to fund your repositioning strategy. Contact us today to learn more.