A company used to bidding moves into the private market: the challenge of repositioning

Real technical capability paired with a brand language that suits the wrong market is why private clients do not trust you.

Sinh Vũ · Creative DirectorPortrait

Quick summary

Companies used to winning state tenders often carry heavy technical language and an administrative identity into the private market. Neither is wrong in content, but both are wrong for the audience: private clients decide by feeling and trust, not by capability profiles. The solution is not to change the logo but to reposition from the ground up: redefine who the client is, what worries them, and what problem the company solves for them.

In this article · 6 sections

Many technical companies in Vietnam have real capability. They have won tenders, delivered large projects, and built up decades of experience.

But when they move into the private market, they lose not because they are weaker than competitors, but because clients cannot read who they are.

The problem is not the product. It is how the company introduces itself.

Two markets, two languages

Public tendering has its own rules of the game. Thick capability profiles, certificates of every kind, process language, the tone of official correspondence: all of it exists for a reason.

State bid evaluators read a dossier to check requirements. They need to see every criterion met, not to feel emotion.

Private clients are different. Owners of small and medium businesses do not read a capability profile clause by clause.

They skim the website for a few seconds, read the introduction, look at the images, then ask themselves: “Does this company understand my problem?”

If the answer isn't clear right away, they move on to someone else.

A brand is how customers perceive a company. It is not the logo, and it is not the capability profile.

Marty Neumeier, The Brand Gap

Symptoms you can spot right away

Companies moving from a tendering environment into the private market often share a few symptoms. You can check them yourself.

  • The website uses the language of a capability profile: “quality commitment”, “professional team”, “comprehensive solutions”, without a single specific sentence.
  • The logo and colors feel institutional: navy blue, bronze gold, stiff typefaces, no different from most others in the same industry.
  • The introductory materials list capabilities instead of describing the results clients receive.
  • The sales team is used to presenting by technical process, not to listening and then reflecting the client's problem back to them.
  • When asked "how are you different from company X?", the usual answer is to add more certifications or more years of experience.

None of these symptoms is wrong in a tendering environment. But in the private market, they create distance instead of building trust.

50 millisecondsThe average time it takes a user to form a first visual impression of a website, before reading a single word. Source: Lindgaard et al., Behaviour & Information Technology, 2006.

The root of the problem: misaligned positioning

Positioning is not a slogan.

Positioning is the answer to three questions: who the company serves, what worries them, and how the company solves it in a way others cannot.

In a tendering environment, these three questions often don't need a clear answer because technical criteria already act as the filter. Any company that meets the requirements moves on to the next round.

The private market has no such filter. Private clients choose by trust, by the sense that a provider understands them. If the positioning is unclear, clients have no reason to choose you.

This is a point many companies overlook when expanding into a new market.

They focus on product capability and forget that this capability has to be communicated in a way private clients can take in.

38%The higher price premium customers are willing to pay for a brand they perceive as “meaningful and different”. Source: Kantar BrandZ, ~2020.

Diagnose before you redo

Before changing anything about your visuals, you need to understand clearly where you stand in the eyes of private clients.

Sinh Vũ usually starts with three simple tests.

The first test: ask someone outside the industry to read the company's homepage for ten seconds, then tell you what they understand the company does and for whom.

If the answer is vague or wrong, it is a positioning problem.

The second test: place the logo and company name next to three competitors in the same industry. If they look so alike they could be swapped, that is an identity problem.

The third test: ask the sales team “how are we different from company X?” and write down the answers.

If everyone answers in a different way, or the answers revolve around process and certificates instead of the results clients receive, that is a messaging problem.

These three tests are usually enough to show where the company needs to start fixing things.

Order of priorities when repositioning

Repositioning does not start with changing the logo. That is the most common mistake.

The right order is usually:

  • Redefine your specific private-sector segment: not “private businesses” in general, but which industry, what size, and at what stage.
  • Research what worries them when choosing a supplier in this industry: risk, price, or being left behind after the contract is signed.
  • Rewrite the positioning statement: one sentence that says what the company does, for whom, and why to choose you over someone else.
  • Rewrite the messaging across the most important touchpoints: the homepage, the introduction materials, and the way the sales team opens a conversation.
  • Once the message is right, then consider whether the visuals need to change to match the new positioning.
+32 points%The outperforming revenue growth of top-quartile companies in design investment compared with the rest, measured across 300 companies over 5 years. Source: McKinsey & Company, The Business Value of Design, 2018.

What to keep when making the shift

Not everything from the tender environment needs to be discarded.

Experience delivering large projects, risk management ability, rigorous processes: these are real advantages that many companies born in the private market do not have.

The problem is that these strengths are being told in the wrong language. “We have ISO 9001” says nothing to a business owner who is worried about project timelines.

But "we have delivered more than twenty projects of this type and have never missed a deadline" says a great deal.

The repositioning work here is not about creating a new advantage. It is about translating the old advantage into a language private clients can understand.

Positioning is what you do in the mind of a prospective customer, not what you do to the product.

Al Ries & Jack Trout, Positioning: The Battle for Your Mind
The growth figures after repositioning in this article come from large-scale research (McKinsey, Kantar) and reflect general trends, not guaranteed results for any specific case. Actual results depend on the industry, the level of competition, and the ability to execute once the positioning is done.

References

Marty Neumeier, The Brand Gap (2003). Byron Sharp, How Brands Grow (2010). Al Ries & Jack Trout, Positioning: The Battle for Your Mind (1981). McKinsey & Company, The Business Value of Design (2018). Kantar BrandZ, global brand report (~2020). Marq/Lucidpress & Demand Metric, Brand Consistency Report (2019).

Frequently asked questions

Does a company that built its business on state tenders need to rebrand when moving into the private market?

You don't always need to change the whole brand. The first step is to check whether your current language and visuals speak to private clients. If your capability profile, website, and the way you introduce the company use the language of process instead of the language of results, that is a sign you need to reposition, not necessarily to change the name or the logo.

Does technical language really affect private-sector sales?

Yes. Private clients, especially small and medium businesses, decide based on trust and the sense that a company understands their problem. When they see administrative language and a long list of certificates, they don't see themselves in it. They often choose a smaller provider that speaks more directly to the problem they are worried about.

What is the first step in repositioning?

The first step is to rewrite your answers to three questions: who exactly do you serve in the private market, what are they worried about, and how does the company solve it in a way competitors cannot. You should be able to answer all three in about ten seconds. If it takes longer to explain, the positioning is not finished.