Product-Repositioning Strategy

Definition: Reviewing the current positioning of the product and its marketing mix and seeking a new position for it that seems more appropriate.

Objectives: (a) To increase the life of the product. (b) To correct an original positioning mistake.

Requirements: (a) If this strategy is directed toward existing customers, repositioning is sought through promotion of more varied uses of the product. (b) If the business unit wants to reach new users, this strategy requires that the product be presented with a different twist to the people who have not been favorably inclined toward it. In doing so, care should be taken to see that, in the process of enticing new customers, current ones are not alienated. (c) If this strategy aims at presenting new uses of the product, it requires searching for latent uses of the product, if any. Although all products may not have latent uses, there are products that may be used for purposes not originally intended.

Expected Results: (a) Among existing customers: increase in sales growth and profitability. (b) Among new users: enlargement of the overall market, thus putting the product on a growth route, and increased profitability. (c) New product uses: increased sales, market share, and profitability.

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