This paper deals with the brand positioning and repositioning strategies of Mitsubishi Lancer. The dynamics of the Indian car industry underwent a complete change with the deregulation of the industry in 1993. However, the new entrants faced early setbacks especially in the luxury segment. Hence, this segment was considered to be unattractive. At that juncture, Hindustan Motors Ltd. entered the luxury segment in 1998 with Mitsubishi Lancer; and the image-positioning strategy of the company paid rich dividends. Apart from emerging as the market leader in the luxury segment, Mitsubishi Lancer expanded the segment beyond expectations. Mitsubishi Lancer remained the market leader till 2001. The attractiveness of the segment motivated other companies to make a foray into the segment. With the launch of cars having better features, Lancer's sales started to decline. At this juncture, Hindustan Motors Ltd. decided to reposition Lancer. The company formulated a two-pronged positioning strategy: It decided to launch low priced variants of Lancer, and simultaneously prepared for the launch of Mitsubishi Cedia as the new Lancer in the D segment. Hence in February 2005, Hindustan Motors launched the cheapest variant of the Lancer, which was priced at Rs. 6.93 lakh. It was positioned as an entry level car in the C segment, thus offering a `value for money' proposition. On the other hand, Mitsubishi Cedia was identified as the new Lancer 2004. The car, which comes under the D segment, was priced at about Rs. 12 lakh. Company sources claimed that the new Lancer would give another option to the customers to move up the value chain. The case attempts to highlight the appropriateness of the two-pronged strategy where a brand has two diametrical positioning planks.

Positioning is the act of designing the company's offering and image in such a way that, they occupy a distinct place in the target customers' minds. The need for positioning arises out of the fact that a product cannot be everything to everyone. Positioning has to give the brand a distinctive reason for being born and to continue to live. Ennis Beaven emphasizes that the fundamental responsibility of a marketing manager is to select a positioning concept that drives the consumer's perception of a brand as far up the spectrum of differentiation as is legally and ethically possible.