Repositioning

Repositioning involves changing market perceptions with a donation so that it can compete
effectively in its current market or in other targeted segments.

Companies that have repositioned themselves successfully

1 : NETFLIX

Today’s new generation probably doesn’t remember that in the late 90s to early 2000s, “Netflix
and chill” wasn’t as easy as shooting a laptop, logging into a Netflix account and choosing a
movie or TV program to indulge in excess. Instead, Netflix was like an online Blockbuster,
almost or less.

In 1998, Netflix launched the first DVD rental site and marketing site through Netflix.com. One
year later, the company began its subscription service, which allowed movie buffs to rent
unlimited DVDs at low monthly costs and receive them by post.
It wasn't until 2007 that Netflix switched to online streaming - and it was a smart move.
Eventually, viewers of all ages will have access to some of their favorite shows and movies, as
well as original Netflix content. In fact, in 2013, Netflix hosted 31 Emmy nominations for the
first time in its first series such as "House of Cards" and "Orange Is the New Black."

Although the company has received angry complaints from customers over the years due to price
changes, the company has experienced financial success over the long term. For example, Netflix
stock was selling for $ 3.80 in early 2007. On September 1, 2016, the stock closed at $ 97.38.

These days, it is safe to say that Netflix is considered one of the coolest stocks you can invest in.
And while the company did not grow its subscriber base as it wanted in the second quarter of
2016, Netflix grew its members by 1.7 million.

2. LEGO

Lego has been around since 1932 and has been a bright toy for many children's lives. Sometime
in 2014, Lego even became the world's largest toy company, surpassing Mattel's Barbie doll, the
Wall Street Journal reported at the time. But the Danish toy company was not always the star.

According to the 2015 Fast Company entitled "How Lego Became the Apple of Toys," the
company was reportedly on the verge of collapse more than 10 years ago. The growth of video
games and the internet has threatened the toy company, which may have been considered "old"
in terms of new toys and games, reports Fast Company. In response, Lego reportedly made
several mistakes. However, by cutting costs, improving processes and managing cash flows, the
company was on its way back.

In 2011 a line of Lego called the Friends Friends, which helped brand the brand in young girls
and fostered the belief that only boys could play with building blocks. But jump ahead 2014,
when "The Lego Movie" arrives in theaters. The movie and its productions have been
instrumental in Lego's discovery of the increase that Matel had to cover in 2014, according to the
WSJ. Thanks to new products and a successful movie, Lego is now more than just a toy - a cool
franchise.

According to BoxOfficeMojo, the "The Lego Movie" has grossed more than $ 460 million
worldwide. And according to the company's 2015 annual report, as reported by Bloomberg,
revenue reached 9.2 billion Danish kroner in 2015 - equivalent to $ 1.34 billion and an increase
of about 31 percent.

3: STARBUCKS:
Howard Schultz had changed the game by placing Starbucks coffee shops as a "third place"
(home, work, Starbucks) for social time in our daily lives. The real product positioning strategy
has been very successful and established a global business.

But in 2008, rapid growth made it difficult to measure the level of service and the number of
sites. The brand also refined its image as an art coffee by trying non-coffee products (such as
music). The Great Depression was the last straw. More than 900 Starbucks stores have closed,
and American consumers have turned to less expensive alternatives such as McDonald's to tackle
their tight budgets.

All of these factors have played a role in the positive re-branding of the product to rejuvenate
the coffee juggernaut market. Starbucks has launched its largest marketing campaign in the
company's history, "The Value and Values of Coffee," to strengthen the quality of their product
and reassure consumers that it was worth the extra cost. Ads use lines such as:

“Beware of a cheap cup of coffee. It comes at a price. "

“Starbucks or whatever. Because compromising leaves a lasting impression. "
"If your coffee isn't perfect, we'll do it again. If it's not finished, you don't have to be in
Starbucks

It worked. In 2014, the company returned to the dark with an annual revenue record of $ 16
billion. Starbucks offers one of the most successful examples of brand re-branding as a "new
creative" strategy. They strip the basic message refined, separated, or trimmed down to its roots
(a cup of really good coffee) and confirm the product price proposal in the process.

4: GUCCI
Gucci was a very effective product in 2010, but its crowd was growing. The dubious, sensual,
and sensual taste that put Gucci on the map did not please the Millennials on the grounds that it
did not address their social moment.

Marco Bizarre took over the position of CEO in 2015 (along with the new Creative Director
Alessandro Michele) and introduced the process of aspiring to redesign the product. Gucci will
hold its Italian roots and splendor, but moreover it is modern. In any case, what would make
Gucci so attractive in her teens?

Gucci has found a way to emphasize the nature of change, for example,

• New highlights with Instagram style books

• The refined logo becomes a focal point for everything

• An inviting and engaging situation in the smoothness of sexual orientation

Such changes have made Gucci a very rewarding one in the next five years (to the best of their
ability so far). Financially and socially, the above conditions of the product repetition approach
have proved fruitful. Prosecutors are excited about Gucci's transition from glossy and fun to
eccentric and antagonistic.

5: SPOTIFY:

Not all examples of product redesign are required with older or outdated strategies. Flexible
problems such as COVID-19 restructuring business models and consumer needs everywhere,
almost all night. One way to respond to a disaster is to reset your product to make it better “new
standard.”

Spotify can be seen as a well-designed product to thrive on the epidemic - digital, remote, and
offers distressed or struggling customers an acceptable escape. However, Spotify also relies
heavily on revenue from ads provided to its many free listeners. COVID has caused many
advertisers to cut budget, and this business model has experienced difficulties.
This requires a pivot towards the most successful model on the market - the ones that have
already proven to be profitable with products like Netflix. Spotify has redefined itself in two
important ways:

They have increased their focus on original content such as podcasts and Spotify® Originals.
They put a lot of effort into selected playlists (from internal experts, external experts, AI, and
celebrities).
This strategy places Spotify as a flavor maker and content creator, not just a music provider. The
results speak for themselves. Artists and customers have uploaded more than 150k podcasts in
just one month. Exploded special podcast deals and artist-selected playlists. Subscriptions work
well - so does Spotify.