Mistakes brands make when repositioning, and how to avoid them

As brands in the premium and luxury space exhibit diverse performances, boardroom discussions often revolve around repositioning and premiumizing. The goal is to make lagging brands relevant again and create significant desirability that translates into higher prices. This task typically falls to the marketing and communication department, which tries to craft a new narrative, often including terms like “timeless” and “modernize.” However, many of these relaunches fail to yield significant results, and instead of strengthening brand equity, they often weaken it. Tradition vs innovation In the dynamic world of luxury, brands must balance tradition and innovation. Repositioning a luxury brand is a challenging, high-stakes endeavor. Attracting a broader audience or adapting to shifting market dynamics can tempt even established brands to reconsider their identity. However, many fall into traps that dilute their value, alienate loyal clientele, and erode market standing. Here are the most common mistakes brands make when repositioning and how to avoid them. A significant misstep during repositioning is misunderstanding the essence of luxury. Today’s clients expect a client-centric narrative, but many brands still rely on buzzwords like quality, craftsmanship, and materials. Clients need to understand the brand's core values. Repositioning should enhance, not dilute, these attributes. The emotional connection luxury brands foster is paramount, and maintaining a steadfast commitment to core values and unique selling propositions is essential. The power of narratives Ignoring the power of storytelling is another common error. Extreme value creation depends on a precise brand story that unlocks the emotional world of the brand and inspires clients. Brands need to identify their role in clients' lives. A coherent, differentiated, inspiring, and compelling story narrated from the client’s perspective is crucial. Authenticity is key: too many brands create "marketing bla bla" that sounds great on paper but has zero value for clients. Inspiration is everything to create desirability. Repositioning based on assumptions rather than robust consumer insights is another frequent mistake. Brands sometimes pivot without fully understanding the desires, aspirations, and behaviors of their target audience, leading to misaligned strategies. Thorough market research to gain deep insights into consumer trends and preferences is essential. Utilizing this data ensures the repositioning strategy aligns with the evolving needs and expectations of the audience. Many brand stories are developed without considering the competitive landscape, and a story attributed to a competitor is unlikely to create market impact. Internal competitive reviews often miss the mark, lacking detail in reverse-engineering competitive brand stories. Client-centric approach Differentiation and client-centricity are critical. Brands that reposition without a clear and unique value proposition risk blending into the background. Following trends or mimicking competitors can erode a brand’s distinctiveness. Clearly defining what sets a brand apart from the competition is vital. Highlighting these unique attributes in repositioning efforts maintains a strong, differentiated market presence. When brand stories are inauthentic, imprecise, already occupied by others, and product-feature driven instead of core-value driven, brands cannot create cultural capital and desirability. If the brand core is not well-defined, executions fall apart. While attracting new customers is a common goal, neglecting the existing customer base can be detrimental. Loyal customers are the backbone of any luxury brand, and alienating them through drastic changes can lead to lost trust and loyalty. Gucci’s so-far failed Ancora reset is a cautionary tale. Engaging existing customers throughout the repositioning process is crucial. A break with core values will lead to client breakups and lost loyalty. Diving in digital-first In today’s digital age, an effective online presence is crucial for luxury brands. Many brands either underinvest in digital or adopt a digital strategy that doesn’t align with their luxury positioning, resulting in a disconnect between the brand’s image and its digital presence. Developing a digital strategy that complements repositioning efforts is essential. For younger clientele, expectations for the brand experience have never been higher. A brand story is only as good as its human-to-human execution, and many experience audits confirm that creating a brand-story-specific client experience is the exception, not the rule. Ultimately, repositioning a luxury brand is a complex and nuanced endeavor. By understanding and avoiding these common mistakes, brands can navigate this process more effectively, staying true to their core values while adapting to contemporary market dynamics. It requires a holistic approach that translates the client-centric brand story into distinct experience markers along the entire value creation ecosystem. Brands undergoing such projects must take them seriously and prioritize them, backed with sufficient resources. Future success depends on the quality of implementation. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders to Watch.” He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his masterclasses at the Jing Academy. Follow him: LinkedIn and Instagram. All opinions expressed in the column are his own and do not reflect the official position of Jing Daily.

Mistakes brands make when repositioning, and how to avoid them

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Published August 05, 2024

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Mistakes brands make when repositioning, and how to avoid them