Not every product should be relaunched, but a product relaunch can be a way to advance a brand's product line without the level of investment that a new product would require. Here are some considerations that can help you figure out whether to relaunch a product and when is the right time to do so.
Is there a nostalgic or pent-up consumer demand for the brand product being relaunched? If consumers are clamoring for the product to come back or say they miss it and want to see more, that is an excellent time to relaunch the product. A CPG marketing campaign can enhance nostalgia or build up the demand for the product to an extent, but if there's not some demand to begin with, a relaunch probably isn't going to work as well as it could.
The Season/Sales Cycle
Some CPG products are made to be launched at a specific season or time of year to take advantage of the natural sales cycle for that product. This can be obvious (Christmas-themed cookies, for example) or not so obvious, like a prepackaged snack launching in late summer before school starts. Timing your relaunch with a seasonal cycle can help you get the most in sales and capitalize on seasonal consumer demand.
There are pros and cons to relaunching a product before or after a competitor's product, so you need to consider what will work best for your brand. Relaunching first can mean you take the biggest piece of market share, but it can also mean you need to do more to create demand. Relaunching second needs the right timing to hit peak market demand but avoid being an afterthought. Knowing your goals before the relaunch will help you make good decisions about when to relaunch your product in relation to competitors.
You need an adequate budget to relaunch in the right way--with a new look for the product and with enough advertising buys to get it into the public eye. If your budget is skimpy, the relaunch may fail or may not produce enough sales to make it worthwhile for the company. You want to hit the sweet spot of spending enough to maximize the response but not spending so much that you don't get a desirable return.
When Research is Complete
If you relaunch a product without doing market research to forecast how it will do, your results will be anyone's guess. Not too many companies can afford to take those kinds of chances, so market research is a must. When your research is done, and it shows that you will likely be able to turn a profit on your relaunch, you should go for it--but not a second sooner.
Want to further investigate relaunching a product? Fill out the form below to download our free "Roadmap for Relaunching a CPG Product" now.
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Topics CPG Trends