Lewins Model of Organisational Change Essay
Lewins Model of Organisational Change
Example of repositioning
Another current example is McDonalds who has lost touch with consumers and global changing needs of consumers (health issue) and are trying to reposition themselves capitalising on their competencies like store location and convenience to update their brand offerings.
A brand’s market share and profitability may be strengthened by repositioning. Repositioning can be accomplished by: – physically changing the product
– changing the price
– changing distribution
– changing image through promotional efforts
– aiming product at a different target market
When a product or brand’s position creates an unfavorable circumstance, the company’s marketing team may seek to reposition it. Repositioning is the process of changing consumer perceptions of a brand relative to competitors. It involves a sweeping process that must be implemented at the strategic level, thereby affecting every part of the company. It cannot simply be a marketing ploy, which might arouse the suspicions of consumers.
Repositioning is the process of changing consumer perceptions of a brand relative to competitors.
In the positioning map shown in Figure 5.9, Nissan did not have an advantage with regard to either safety or speed. The marketing department, after seeing the results, might try to reposition Nissan on the variable of safety. Repositioning would involve improvements in the safety features of the automobile (in the design and manufacturing departments), a promotional campaign to inform consumers of these changes (marketing), public relations releases announcing the results of new safety tests when they favor the company, and an overall company focus on safety.
Such a strategy includes informing all employees about the new approach and rewarding those who suggest innovations and improvements related to safety of the automobiles. If successful, a future positioning map would show Nissan moving up on perceptions of safety. The Hyundai example from earlier in this chapter serves as an example of effective repositioning. The company moved from perceptions of being cheap and low quality to a new position based on improved consumer perceptions of quality.
Sometimes during its existence, a company may notice that its products’ image is outdated, or can be improved. Then the company starts re-positioning its products in customer’s perception. Re-positioning consists in identifying a new, unoccupied market position and promoting the product based on the new criteria. Re-positioning is suitable for minimizing company’s own products’ competition. The business is trying to make a difference in the way the consumers perceive the similar products they furnish. Re-positioning requires a sustained promotional campaign and bring forward many risks.