Reading: Repositioning

When It’s Time to Change Direction

Once products, services, and brands are introduced to the market, they rarely remain static. Competitive pressures, customer expectations, and broader market forces constantly shift. To remain relevant, organizations often need to reposition—that is, adjust how the market perceives their offering so it can compete more effectively within its current segment or expand into new ones.

Repositioning typically becomes necessary when demand is weakening, target segments are shrinking, or new innovations create opportunities. Common triggers include:

• Competition: New entrants disrupting the market, rivals joining forces, breakthrough innovations, or aggressive pricing strategies.

• Market environment: Economic shifts, changes in consumer confidence, political or regulatory changes, or social forces such as the rise of sustainability.

• Consumer trends: Evolving tastes, changing behaviors (like digital adoption), or the emergence of new customer segments.

• Internal environment: Leadership changes, new technology, acquisitions, or innovations that alter competitive advantages.

Example: H&R Block

H&R Block illustrates these dynamics well. As tech-savvy millennials began handling taxes, many turned to digital self-service tools like TurboTax instead of traditional tax professionals. Despite launching its own online product, H&R Block struggled to attract this segment, while its traditional customer base aged. Facing declining relevance, the company invested in repositioning campaigns in 2012 and 2014, using humor, social media, and social responsibility to refresh its image and better connect with younger taxpayers.^[1] The following H&R Block video ad from the 2012 “Stache Act” campaign makes the case for a fictional Million Mustache March on Washington to alter the tax code to include a $250 deduction for facial hair grooming materials:

You can view the transcript for “Stache Act Campaign Ad – The Oval Office”. (opens in new window)

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The Repositioning Process

Repositioning follows a similar framework to initial positioning, but with a critical difference: it builds on existing perceptions rather than starting fresh. The task is not only to introduce something new but also to reshape what’s already established.

Repositioning may involve tangible product or pricing changes, but more often it centers on messaging and communication. Many campaigns refresh perceptions without altering the product itself, instead encouraging the target audience to “take another look” at the offering. Successful repositioning tends to expand appeal—either by reinvigorating current segments or by opening doors to new ones.

Just as importantly, repositioning is not a one-time event. Market perceptions must be monitored continuously, with feedback loops to assess what’s working and where adjustments are needed. Like a scoreboard in a game, positioning can shift quickly, and marketers need to track and adapt accordingly.

Repositioning Risks and Pitfalls

Repositioning is powerful, but it’s also fraught with risk because it must reconcile the past with the future. Customers, employees, and other stakeholders carry memories and opinions of what the brand once stood for, which can complicate efforts to redefine it. Missteps can confuse loyal customers, weaken brand equity, or damage credibility.

Key pitfalls include:

• Insufficient research: Not fully understanding how the market or target segment will respond.

• Going too far: Making changes so radical they break credibility.

• Forgetting the basics: Overcomplicating messaging when clarity around core benefits is what matters most.

• Overpromising: Creating expectations the organization cannot realistically deliver.

• Mixed signals: Allowing old and new messages to conflict, creating confusion.

Example: United Airlines

United’s late-1990s “Rising” campaign is a cautionary tale. Moving away from its long-standing “Fly the Friendly Skies” positioning, the airline promised a superior service experience. But the company failed to deliver the operational changes needed to support those claims. Within two years, the campaign collapsed, damaging credibility and confusing customers.^[2]

Repositioning Success

Despite the risks, well-executed repositioning can transform organizations.

Example: The Red Cross

During the 2009 recession, the American and Canadian Red Cross faced declining donations despite high brand awareness. Research showed people strongly associated the Red Cross with disaster relief—but not with holiday giving. To shift perceptions, the organization repositioned itself with campaigns such as “Give the gift that saves the day” and “We Answer.” These messages reinforced its core strength in disaster response while linking the brand to seasonal generosity.

This message reinforced the powerful role that the Red Cross plays in times of disaster and invited Americans to be part of that important work. With words like “give the gift,” it also implanted the idea of the ARC as a great recipient for holiday giving. The following video was created as part of the 2009 integrated marketing campaign that introduced this new positioning.

The results were dramatic:

• Income grew by over 5% in 2009, despite the recession.

• Donors exposed to the campaign were twice as likely to give.

• By 2010, revenue increased 26% over 2009, with average gift size up 43%.

• Corporate donations followed, including record support from Walmart Canada.

This case shows how repositioning, when grounded in research and aligned with core strengths, can create lasting impact.^[3]

Creation note: This content was updated with the assistance of ChatGPT, a language model developed by OpenAI, and was subsequently reviewed and edited by the author for clarity and accuracy.