Consumer driven repositioning
Consumer driven re-positioning could be defined as a reaction to unforeseen market response.
Producer’s objective typically is to change current associations/images of the product/service and to re-acquire consumers appeal and desire towards the product/service.
Black and Decker Power Tools for Professional-Tradesmen example (repositioned as: DeWalt)
Black and Decker name enjoyed substantial equity in both the United States and Europe. An independent survey (Landor Associates Survey) of 6,000 brands showed Black and Decker’s brand-strength ranking to be number 7 in the United States and 19 in Europe. This put Black and Decker in the company of Coca-Cola, Campbell’s, Walt Disney, Pepsi-Cola, Kodak, NBC, Kellog’s McDonald’s and Hershey – the other firms rounding out the U.S. top ten.Within consumer segment in power tools, B&D’s brand recognition and image helped it attain the #1 position in the marketplace with nearly a 50% share over suppliers such as Skil, Craftsman, Wen, and various provate label products.
However, B&D’s strength in the Consumer segments did not transfer in the Profesional-Tradesmen segment. The professional-Tradesmen were targeted largely at tradesmen such as electricians, plumbers, carpenters, framers, roofers, and general remodelers.
The behavior of tradesmen, who make a living and depending on tools that are reliable and proven (used widely by other tradesmen), occupy an important impact on decision to purchase within this segment. It is a priority, for tradesmen, to display a level of professionalism in their field of work to be at least in parity with their fellow tradesmen, if not better. And one of the instruments that perceived by them to show this degree of professionalism is the tools they use. Therefore, tradesmen tend to not deviate from the “trend of tools” that are widely used. Using the wrong tools, i.e. Tools that are widely recognized as a “home-use DIY” tools, like Black and Decker’s, could make them to be seen as a not professional tradesmen by their customer or fellow tradesmen. This is why tradesmen valued Black and Decker’s tools as inappropriate tools for them to use at work.
One alternative was to use alternative brand to position the power tools with a completely new image in the market. DeWalt was founded in 1918 and bought by Black & Decker in 1960. DeWalt was a leader in sales of large radial arm saws.
Essentially meaningless to most consumers, in the world of construction workers the name DeWalt conjures up memories of "high school shop classes and reliable old radial-arm saws" that never wore out. The DeWalt name had never been used on a portable power tool.
In the preliminaries awareness research, DeWalt name received 70% awareness rating, and most of those who knew DeWalt were positively disposed to it.