Markets for consumer products and customer demand changes rapidly and
therefore a company has to change in a way that meets these new demands. A
repositioning process can be a great strategy for companies to change their
position in the marketplace. Repositioning can affect the brand
personality, and it is important that this personality features can be
compared with those for humans. For this reason, the purpose of this study
is to provide a deeper understanding on how customers react to a brand when
it is repositioned. In order to reach this purpose, research questions
focused on looking at the concerning the strategic risks and benefits with
the repositioning, as well as taking a look at how a brand's personality
might change during such a repositioning. Based on these research
questions, a review of the relevant literature was conducted, resulting in
a conceptual framework. This framework was then used to guide this study's
data collection. Using a qualitative, case study approach data was
collected from a focus group consisting of eight female students at Luleå
University of Technology, looking at the recent repositioning of the brand
Hennes and Mauritz (H&M). The findings indicate that several benefits
follow with repositioning. However, it is risky for the brand if it is not
conducted correctly, resulting in the company losing their creditability
and their loyal customers. The findings also show that it is less risky for
a more established company to go through a repositioning process than for a
small-sized, not well known brand. This is for the reason that larger
companies have a tendency to control the market to some extent, and have a
larger amount of loyal customers. The findings also show that it is
important for a company to possess a significant brand personality. The
consumer has to have the ability to relate to the personality if purchasing
from the specific company. It is for this reason that customers are loyal
to a brand. ...
