8 Explain the reasons why a product might need to be reposit

8. Explain the reasons why a product might need to be re-positioned. Provide an example for each.

Solution

Answer:

1. Change in consumer needs: Over time (say 10-20 years), there are changes in consumer needs and lifestyles (as the next generation moves through), which may result in the key benefits of a product no longer being as relevant to the target market.

2. New/strong competition: A product may be challenged by a new (perhaps more relevant) or stronger competitor in their positioning space, requiring the task of repositioning to a less competitive arena.

3. Lack of perceived differentiation: A firm may have found their products with many points-of-parity and few points-of-differentiation, requiring a revised positioning in order to highlight their particular advantages.

4. Change in macro environment: Significant changes in the macro environment may require products to be repositioned. Economic conditions, technological advances, and even legislative change may require the firm to change its product’s positioning.