The profits were relatively high to start with but with competition, the relatively low price of substitutes and wide range of varieties in different shapes and colors brought our product to a maturity and start of decline stage. It could be clearly seen that our product lacked a competitive advantage over other substitutes present in the market because of the price sensitivity and choice range. Now, in terms of repositioning the product with reference to breakaway positioning would be a definite challenge in this atmosphere with tough competition. The product was marketed to importers only because they exhausted the production capacity. Gradually, the price sensitive and high customization demanding market was phasing our product out.
It had to be repositioned in a new way now, so as to which the market looks at it with a new perspective. We can change the attributes of the product to suit the present market demands in accordance to the conclusions based in the market survey report. It now has to be positioned in a way where the product creates a higher demand and the everyday man also looks at buying it because of its ease of use and less problems.
Repositioning in this case would relate to change of attributes to the core product creating a renewed product according to market demands. It brings out the strategy of product rejuvenation where the product’s attributes are changed according to the markets needs. The market research report that we got contained the basis of augmentation of the product. With all these conclusions, we have a repositioning situation on our hands and would start with a check on the product for its incompetence’s and the flaws. The augmented product by the information received until now would help to manufacture the core product by adding extra attributes as per the need of the market.
The augmented product should now try to move back to the growth stage with a new marketing perspective to several segments of the consumers and the product should be distributed by new channels of distribution i.e., direct contact with wholesalers and retailers. A penetration strategy can be adopted to drill into the market with lower prices of the product. Also with the use of breakthrough positioning, the product which is an electrical accessory in description can be positioned as a fashionable household accessory which has electrical uses as its core use. It would now be in a new distinct segment of its own.
Finally, bringing fourth the stealth positioning strategy, this would advocate marketing the product as a fashionable electric accessory rather than a general socket box for switches. The vision of the everyday man will grow to use that product which was once rejected but now will be repositioned with its new attributes. Growing markets like United Arab Emirates, Dubai have been identified for the successful marketing of this product by market survey reports. So repositioning in a different category and in a differently percieved way for the added attributes for extra purposes would be the strategic plan for the abovementioned product to bring it back to the growth stage.
