Common Pivot Strategies Used by Brands

Peterson , content writer | Friday, 21 April 2023

Starting a business is a difficult task. A corporation must work on acquiring customers and ensuring that its products stand out in the market from the start. However, because consumer preferences continuously change, firms must be more adaptable than ever. A successful pivot strategy and business plan can allow firms to react to new trends and remain competitive.

Whether you're a new entrepreneur or a seasoned business owner, keep reading to discover how pivoting might help your firm succeed.

Common Pivot Strategies Used by Brands
Pivots come in a variety of shapes and sizes. Sometimes a modest incremental modification can have a large impact. At times, it takes an all-hands-on-deck effort to steer the massive vessel in a new direction.

Here are some of the most common pivots.

1. Product Pivot
Product pivoting entails modifying a company's product offerings. A product's ingredients, packaging, pricing, or introduction of new product lines may be pivots to satisfy consumer demand.
2. Distribution Pivot
A distribution pivot strategy involves a corporation shifting how its products are delivered to customers. Expansion into new geographic regions, partnering with new shops or online marketplaces, or utilizing new distribution channels are all examples of distribution modifications.
3. Pricing Pivot
A pricing pivot strategy entails adjusting the pricing of a company's products to match consumer demand or a profit goal better. Pricing adjustments may involve lowering prices to attract more price-sensitive customers or increasing costs to reflect a product's perceived value.
4. Marketing Pivot
A marketing pivot plan entails altering a company's marketing strategy. A CPG marketing plan can be altered to target a different audience, use other advertising channels, or change the tone or messaging of marketing efforts.

Why do businesses need to pivot?
To successfully pivot a consumer packaged goods brand, it is critical to identify the need for change. Here are three important considerations to examine when deciding whether a pivot approach is required:

Evaluating Competitors’ Strategies
Evaluating competitors' market strategies is required in strategic planning and helps brands identify areas where they may lag behind similar category offerings. Competitors' products may target your ideal audience more effectively, adapt to market trends more effectively, or connect their brand with the appropriate retail partner.

Pivots are not necessarily the result of adversity. They frequently come from an opportunity discovered while analyzing competitors' strategies.

Analyzing Market Trends & Consumer Behavior
Don't ignore information that could jeopardize your brand. Keeping an eye on current market trends and consumer behavior is crucial for determining whether a pivot strategy is required.

Market changes, like adjustments in customer tastes or the development of new competitors, may necessitate a brand pivot to remain competitive.

When it comes to coffee, many businesses have shifted from hot to cold brew options. Brands that adapt rapidly can capitalize on a new coffee segment, reducing the competitive environment.

Identifying Weakness In a Current Brand Strategy
Identifying vulnerabilities in the brand's current approach is another essential issue to consider when taking into account the necessity for a pivot plan. Brand flaws are faults with a product's consumer perception, poor marketing effectiveness, an unreliable supply chain, or an ineffective distribution plan.

It starts with determining what works and what doesn't. Not to eliminate what isn't functioning but to figure out why. Weakness in a brand strategy refers to optimizing strengths while highlighting weaknesses.

What are the risks and challenges involved in pivoting a business?
Customer loss, poor resource allocation, and coping with internal resistance are all potential dangers of a company pivot. There is also the risk of tarnishing the company's brand, the difficulty of implementing new processes, and the unpredictability of the outcome.

Bottomline
In today's quickly changing market, organizations must increasingly rely on multiple business strategies to ensure long-term success and a solid competitive position. Modern realities force entrepreneurs to build flexible and agile operations that allow them to respond quickly to changes in their environment and within their organization. This technique allows them to stay ahead of the competition by being adaptable and responsive to the market's changing needs.