Relaunching a product that used to be on the market is a move that CPG brands want to carefully consider before doing. If the product was doing poorly enough to be taken off the market, why would the brand want to bring it back?
At the same time, there are benefits to relaunching a product, and sometimes it can be the right decision.
To Avoid Reinventing the Wheel
One compelling reason to relaunch a product is the time and cost savings of using an existing product rather than developing a brand new one. If a careful analysis of the previous product reveals the reason for its poor performance, and the reason is a correctable one (poor package design, formula mistake, etc.), it makes sense to correct the problem and see if it can perform better the second time around without the major investment a brand new product would require.
To Meet Changing Market Conditions
The market for CPG goods is constantly changing. What was needed or wanted one year may be completely different from another year. Good market research can identify these changes and needs, matching them with products that could be refreshed and relaunched. In some instances, a change can be made to a different market level, such as from mid-market to premium, with resulting increases in profitability.
To Take Advantage of a Trend
Maybe a product was ahead of its time, and a current trend would support a relaunch in conjunction with a trend cropping up in the near future. It is sometimes unprofitable to be ahead of the curve, but it can be beneficial in relaunching a product when the trend finally does materialize. Trends come and go, so a relaunch based on a trend can be risky if it is not positioned to ride the trend and fade away with it or to be rebranded again to achieve more permanence within the market.
To Capitalize on Nostalgia
There is a market for nostalgia, and people will buy products that remind them of their childhoods or other formative periods of their lives. A product relaunch done at the right time, perhaps in conjunction with a popular TV show that incorporates the original product in its original time period, could tap into this demand for nostalgic products and lead to success. In some instances, parents will be the driver of the nostalgia and may introduce their children to a cherished product that may then become an established part of the child's experience as well.
There are many reasons to relaunch a product if it can be done well with a solid plan for success in place. Even widely known, established brands from Coca-Cola to Sara Lee have relaunched and rebranded products from time to time, with varying degrees of success.
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Topics CPG Trends