7.1 Master the Pivot (aka Repositioning)

You did everything right. You followed the data. You charted a bold vision. You crafted a sharp competitive angle, built a great product, aligned your marketing mix, and optimized your marketing budget.

And still—results fall short.

If that happens, you’re not alone. Most successful products didn’t hit it out of the park on the first try. And it wasn’t because the products were bad—they just weren’t great yet.

Because here’s the truth: Markets shift. Competitors respond. And most importantly—customers often surprise us. Even the smartest strategy is still a hypothesis. Once your product hits the market, real behavior reveals what the research couldn’t. That’s not failure. That’s how growth works.

Figure 7.1: The Growth Cycle

The best teams use a simple rhythm:

Learn from what the market tells you

→ Pivot to better match needs—it may take several tries

→ Grow from how you’ve repositioned

Then repeat.

Responding is not the same as falling apart! The need to pivot isn’t a sign your strategy failed. It’s a sign your strategy was bold enough to meet reality—and flexible enough to respond.

Why Pivots Are the Norm, Not the Exception

It’s tempting to think that great products burst onto the scene fully formed, but history tells a different story:

  • Instagram started as a check-in app called Burbn. It pivoted to photo sharing when users ignored location features but loved posting pictures.

  • Slack grew out of a failed online video game. The team realized their internal chat tool had more potential than the game itself.

  • Play-Doh began as wallpaper cleaner. When sales flagged, the product was rebranded as a children’s toy—and became a household name.

Even corporate giants like Apple and Coca-Cola have repositioned flagship products in response to consumer feedback and competitive shifts.

Apple: iPhone Repositioning from Luxury Tech to Lifestyle Essential

When Apple launched the first iPhone in 2007, it was positioned primarily as a luxury, all-in-one tech device targeting early adopters and tech enthusiasts. But by the third generation (iPhone 3GS), Apple pivoted the positioning to everyday lifestyle utility by doing the following:

  • Lowed pricing via carrier subsidies

  • Broader app ecosystem aimed at productivity, social sharing, and entertainment

  • Marketing shifted from sleek “tech marvel” to “This is your life. Connected.”

Result: iPhone became not just a gadget but an essential part of daily life, driving mass-market adoption.

References

MageComp. (2024, April 15). Apple Marketing Strategy: 8 Essential Principles to Understand. MageComp. https://www.linkedin.com/pulse/apple-worlds-first-essential-luxury-brand-andy-cunningham-1c

Holland, P. (2022, July 2). The iPhone at 15: How Apple's phone became the center of your life. CNET. https://www.cnet.com/tech/mobile/the-iphone-at-15-how-apples-phone-became-the-center-of-your-life/

Coca-Cola: Coke Zero Repositioning to Coca-Cola Zero Sugar

Coke Zero originally launched in 2005 targeting male consumers wary of “diet” branding. Over time, consumer tastes shifted toward healthier options and sugar-conscious choices across all demographics. In 2017, Coca-Cola pivoted and did the following:

  • Renamed the product Coca-Cola Zero Sugar to emphasize no sugar rather than calorie counting

  • Tweaked the formula for taste closer to the original Coke

  • Underwent global rebranding tied to the master Coca-Cola brand identity, not just a sub-brand

Result: Sales surged post-repositioning, with global volumes up and Coca-Cola Zero Sugar becoming one of the company’s fastest-growing products.

References

FullSurge. (2017, July 27). A Closer Look at the Rebranding of Coca-Cola Zero. FullSurge. https://www.fullsurge.com/blog/a-closer-look-at-the-rebranding-of-coca-cola-zero

Hiebert, P. (2024, July 23). The soda category's breakout star is Coca-Cola Zero Sugar. Adweek. https://www.adweek.com/brand-marketing/coca-cola-zero-sugar-soda-market-share/:content

O'Reilly, L. (2016, July 8). Coca-Cola explains its Coke Zero rebrand. Business Insider. https://www.businessinsider.com/coca-cola-explains-its-coke-zero-rebrand-coke-and-coke-zero-sugar-are-like-ham-and-egg-2016-7

Even the most iconic brands aren’t immune to changing tastes and shifting value perceptions. Apple adapted to mass-market needs. Coca-Cola rebranded to align with health-conscious consumers.

When a Product Doesn’t Click

But what happens when your product just isn’t clicking from the start? That’s where strategic repositioning matters most—and Starbucks shows how learning fast and pivoting with purpose can turn a near miss into a market win.

Strategy in Action: Starbucks—The Pivot That Created a Coffee Empire

When Howard Schultz first joined Starbucks in the 1980s, the company didn’t sell brewed coffee. They sold coffee beans and equipment for home brewing. But Schultz had an insight: During a trip to Milan, he observed the Italian espresso bar culture—a place where people didn’t just buy coffee. They gathered, socialized, and lingered.1

He proposed pivoting Starbucks from a retail store into a café model. Initially, the company’s founders resisted. They worried that serving beverages would stray too far from their core business of selling premium beans and equipment.

So Schultz took a bold step.

He launched his own café chain, Il Giornale, to test the concept. The response was overwhelming—customers loved not just the coffee but the entire experience. The café wasn’t just a store; it became a community hub.

Starbucks then embraced the pivot, and when Starbucks’ original owners decided to sell the company, Schultz acquired it in 1987 and fully implemented the café model across new locations.

Today, the café model defines Starbucks’ global success:

  • Customers spend more per visit.

  • Store ambiance reinforces the brand’s premium positioning.

  • Loyalty programs and personalized drinks drive repeat business.

Result

Repositioning isn’t just about tweaking messaging. It often requires rethinking the entire business model based on customer behavior and unmet needs.

Pro Tip

Repositioning isn’t just about tweaking messaging. It often requires rethinking the entire business model based on customer behavior and unmet needs.

Bottom Line

Even a seemingly perfect marketing strategy can become outdated or outmaneuvered. But more often, what looks “perfect” on paper is simply a poor fit for the competitive realities of the market. Great businesses don’t just polish their strategies—they constantly assess whether they’re even playing in the right competitive space.

What separates average marketers from great ones isn’t having a flawless plan. It’s the ability to recognize when the fundamentals aren’t working, learn from real-world data, and reposition—fast.

That’s exactly what Howard Schultz recognized when he pivoted Starbucks from a struggling retail concept into an entirely new competitive space—the American café experience.

And that’s why great marketers always learn, pivot, and grow.

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