28th October 2024
During one of my reading sessions, I stumbled upon a fascinating example in Sudhir Sitapati’s book CEO Factory, which discussed how the British transformed the perception of tea in India. This sparked my curiosity, leading me to explore more such instances. It’s evident that the strategy employed by the British East India Company can be seen as a classic case of repositioning.
Repositioning involves changing the way a product or brand is perceived in the mind of consumers, without necessarily altering the brand name, logo, or visual identity. The primary focus is on changing the brand’s value proposition and how it is communicated to target markets. It often targets new audiences, new uses for a product, or updates the messaging to adapt to changing market conditions or competitor pressures.
There are several fascinating historical instances where products were repositioned on a societal scale through clever strategies, often by leaders or governments.
1. King Frederick the Great of Prussia Repositioning Potatoes
- Problem: In the 18th century, potatoes were introduced to Prussia (modern-day Germany) as a potential staple food, but the population was apprehensive. They saw potatoes as unappetizing, fit only for animals, or even suspicious due to their unfamiliarity. Potatoes were popularly referred to as ‘Devil’s Apple’ since it was never mentioned in the Bible. However, introducing potatoes in European gardens brought a huge respite to the farmers as well as consumers. For the farmers, this was a cheaper crop to grow and tend and the produce was much higher than wheat for a single acre and for consumers it was an alternate source of carbohydrates.
· Repositioning Strategy:
- Perception Shift: Frederick the Great recognized the nutritional value of potatoes as a solution to frequent famines and food shortages. However, rather than forcing people to eat them, he used reverse psychology to make them desirable.
- Reverse Psychology: He declared potatoes as a “royal vegetable” and planted them in his royal gardens. He instructed his soldiers to guard these potato fields but subtly told them not to guard them too closely.
- Result: The perception of the potato shifted, as peasants began to steal the “forbidden” crop, believing anything protected by royal guards must be valuable. This created intrigue, and over time, potatoes became an essential and respected food source in Prussia.
- Impact: Potatoes eventually became a major part of the Prussian (and later European) diet, helping to alleviate food shortages. Eventually potatoes provided respite during the Austrian Wars of Succession (1740-1748) and during the seven years of war (1756-1763) Prussian peasants were still able to escape disaster by eating potatoes.
There are more instances of repositioning of products in India by the British East India company to keep their coffers full. Many of the traditionally grown products like spices and cotton were repositioned to appease the British market.
2. The British Repositioning of Tea in India as “Chai”
- Problem: During British colonial rule in India, tea was not a common drink among Indians. The British East India Company was producing large quantities of tea in India, but it was mostly for export, with the domestic market largely untapped. In order to attend to the excess tea production in Assam, the then Viceroy Lord Curzon had called upon several companies to develop the tea market in India. Brands like Lipton and Brookebond responded to this call and implemented several tactics.
· Repositioning Strategy:
- Domestic Market Targeting: In the early 20th century, the British-owned Indian Tea Association saw an opportunity to increase tea consumption domestically. They rebranded tea (originally seen as a foreign or elite drink) as a beverage for the masses.
- Chai Culture: The British encouraged tea vendors, or “chaiwalas,” to add milk, spices (like cardamom, ginger, and cloves), and sugar to the tea, creating what is now known as “masala chai” or simply “chai.” This made the drink more appealing and affordable for Indian tastes.
- Mass Marketing: The British-backed campaigns to promote tea drinking in offices, train stations, and streets across India. Tea stalls became popular, and drinking chai became a cultural norm, blending British influence with Indian tastes.
- Impact: Today, chai is an integral part of Indian culture, with its own unique identity distinct from British tea-drinking traditions. What was once an unfamiliar, elite product was transformed into a daily ritual for millions of Indians.
3. Spices (Pepper, Cloves, and Cinnamon)
- Initial Positioning: Spices like pepper, cloves, and cinnamon were highly prized luxury goods in Europe during the 1700s. They were sourced from India and Southeast Asia and used primarily by the wealthy for food and medicine.
- Repositioning: As the British East India Company and other European traders established greater control over spice trade routes, these spices became more accessible in Europe. What were once luxury items for the elite were gradually repositioned as more affordable, everyday products for broader markets.
- Impact: The repositioning of spices from rare luxuries to widely available commodities helped fuel European demand and the expansion of colonial trade networks. In India, the spice trade continued to be a significant part of the economy, though under increasingly exploitative conditions imposed by the British.
4. Cotton Textiles
Initial Positioning: India had been a hub for high-quality cotton textiles, especially muslin and calico, for centuries. Indian cotton goods were sought after in Europe, seen as luxury items due to their fine quality.
Repositioning: In the late 1700s and early 1800s, under British colonial rule, Indian cotton production was restructured to benefit the British textile industry. Raw cotton was exported to Britain, processed into textiles in British factories, and then re-imported into India. Cotton textiles, previously viewed as premium exports, were now sold back to Indians as more affordable, mass-produced goods.
Impact: This repositioning led to the decline of traditional Indian textile industries. British- made textiles, marketed as more affordable alternatives, became widespread, but this also sparked nationalist movements and the Swadeshi movement, promoting locally made goods.
5. The Tomato in Europe:
- Initial Resistance: When tomatoes were introduced to Europe from the Americas, they were often feared to be poisonous due to their relation to nightshade plants.
- Repositioning: In Italy, tomatoes were gradually embraced and incorporated into traditional dishes like pasta, pizza, and sauces, becoming central to Italian cuisine. This shift was achieved through culinary innovation and their eventual acceptance by the masses.
- Impact: Tomato is one of the most widely used vegetables for cooking, seasoning and many other culinary experiences. It has become the staple vegetable for many economies.
6. Bananas in the United States:
- Initial Reluctance: When bananas were first imported to the U.S. in the late 19th century, people were unfamiliar with the fruit.
- Repositioning: Advertising campaigns rebranded bananas as a healthy, convenient snack. Promotions by the United Fruit Company (later Chiquita) positioned bananas as a nutritious part of breakfast, appealing to American family life.
- Impact: Bananas are now one of the most consumed fruits in the U.S
In conclusion, repositioning is not just a tactic for survival but a critical strategy for brands to thrive and evolve in dynamic markets. When executed effectively, repositioning allows brands to expand their appeal, enter new markets, and build a deeper connection with their audience. The long-lasting impact of these strategies can turn products into cultural icons, making them an integral part of everyday life for generations. In essence, brands that continuously refine their positioning are better equipped to remain relevant and resilient in a fast-changing world.
References
https://berlinexperiences.com/did-frederick-the-great-introduce-the-potato-to-germany- mythbusting-berlin/
CEO Factory by Sudhir Sitapati – Juggernaut Publications
Questions
- What is your opinion on the repositioning of products by British East India Company in India? Do you think they were successful?
- How can you create a perception shift using reverse psychology for repositioning of products? Give an instance based on the caselet.
- List down a few repositioning strategies used recently by marketers.
