Product Relaunch

Defining product re-launch

 It is defined as the process, when an existing brand
changes or modifies the key elements of the
marketing mix without materially changing its target
consumer group.
 Or relaunch, typically, would mean that the product,
perfume and packaging have been modified or even
changed substantially and the change is
communicated through media advertising and at the
point of sale.
Example of Product relaunch

Nestle is planning to re-launch Maggi in its original

taste. The new ad campaign's refrain is `Ab sub
kuch pehle jaisa'. Nestle's campaign has been
necessitated, they claim, as in the recent past,
Maggi has lost some market share to competition in
noodles. Now, Maggi is a formidable brand; this has
been proved time and again, even after the launch
of Top Ramen. What Nestle is doing is leveraging
the brand name and all associations of the brand
name to lure customers of Maggi, who left it for Top
Ramen.Unlike Maggi.
 Binaca is a brand that existed only in
yesteryears. The most remembered thing
about Binaca is its conversion to Cibaca. So,
why is the company re-launching Binaca and
not Cibaca? Cibaca changed the brand name
Binaca to Cibaca when it was sold to another
company.
Reasons for brand relaunch
 Decline in market share
 and the brand's strength
 Competition in the market place
 Repositioning of the brand.
 Changed market conditions.
 Saving on costs of a new brand launch
 Entering a new market.
Major considerations while relaunching a
product
 The cost and time needed to fix a product.
 The required capital investment to re-launch the product.
 The response rate of different market segments to the re-
launched product.
 The optimum pricing strategy.
 The length of the sales cycle.
 The market size for each segment.
 The cost and profitability of servicing customer relationships
over multiple periods.
 The evolving cost and value characteristics of activities in the
value chain.
The revival checklist

Jeff Himmel, chairman of the Himmel Group, which has rebuilt such brands
as Ovaltine and Lavoris, outlined the "Twelve Musts" in product turnarounds:
 1. Point of difference. Will consumers buy this product instead of another
brand?
2. Unique selling proposition. Does the product tell a unique story?
3. Make the brand stand out.
4. Dominant share of advertising.
5. Frequency of advertising. Make sure the message about your product is
repeated over and over to the public.
6. Listen to the consumer, and then listen again more carefully.
7. Produce creative advertising that strikes a chord with the consumer.
8. Control commercial production costs. (He tends to only spend about $2,000
producing a commercial.)
9. Use your money to place ads, not make ads, and get a dominant share of
advertising.
10. Live in a state of perpetual paranoia and always know what your
competitors are doing.
11. Consider the X factors about your product. For example, does it have an
existing distribution, or will it have to be created from scratch?
12. Have discipline to follow all the points on this list.
Keys to turnaround

 Good distribution
 Unique value proposition
 Research into the product and people
 Saving on new brand building costs
 Conflict between the perception of the brand
and its current communication in the mind of
the prospect should be minimized.
Strategies for new product relaunch

 Line Extensions
 New Market Entries
 Differentiation
 Positioning
 New marketing mix
 Research and development- Bringing innovations
 Innovative packaging
 Aggressive marketing( mailing hard as long one feel
sending the right stuff, make affiliates to participate
by making relaunch an event, special moment, fun
and easy.)