A poorly positioned brand with a fuzzy position or not offering a clear proposition is likely to be eclipsed or weakened by a stronger competitor. Weak positioning can occur if a retailer consistently cuts a brand’s price. The Ratner stratagem of bringing in foreign stock which was cheaper but not hallmarked was at first successful. However, the overstretching of the business in takeovers to expand the brand and then a widely reported statement by Ratner himself that his products were ‘crap’ led to the demise of the group. Ratner had to leave the company and the brand name was subsequently changed to Signet. In effect, Ratner management had repositioned the brand without thinking beyond the ‘price’ effect to the ‘brand’ effect. This led to the alienation of the company’s target market.
There are other undesirable consequences of not having the right positioning strategy for a product or service in the marketplace. Among the most common in retail trades are –
- The retail organization (or its own-label products) may find itself in a position where
- It cannot escape from direct competition from stronger competitors;
- The retailer may find itself in a position which is weak as demand may be falling and
- Others have left that position knowing there is little customer demand there;
- The retailer’s position, or that of its own-label products, is so confusing that nobody
- Knows what its distinctive competence or personality really is;
