In With The Old, and Out With The New?

Product rejuvenation is one of the topics that I read about this week. This concept involves the reintroduction of an abandoned product or one with a quickly declining consumer interest. It is inevitable that hundreds of products will lose their touch, but the question is, what do you do next? There are basically two options, either clear the drawing board and start over, or recreate the same idea and put it back on the market. There are many advantages to product rejuvenation such as less risk, lower costs, less time necessary, cheaper market share, and hopefully higher profits. These are all prime factors in the decision process, and a good manager is always look for the most effective and efficient route.

Although this may seem like a perfect route to take, and I do believe that is has the potential to be very successful, this article really just touched the surface. Before making any business decision, especially one of this magnitude, any good business man know that you have to weigh the pros AND the cons. One apparent advantage is that you already have a captive audience. Because of this, it may seem that it is going to take less effort to win those "old users" over again. In one sense, this is true. Consumers that were avid users of a certain product will become nostalgic when they hear that brand or product they used to buy years ago. At the same time, brand loyalty can only go so far. With all of the changes our society is constantly going through, that product that was widely accepted and utilize five years ago maybe obsolete now. The general concept of the product may still be useful, but some drastic changes will have to made to appease those "old users." This isn't to say that some consumers will purchase something just for its nostalgic value, but to keep a product in the market much longer, more needs to be done to sustain its success.

A lot of it depends on the goals of the company. One reason a company may use product rejuvenation is to fill in a gap between productivity periods. For example, a typical scenario could be that Company A needs more time to fully develop their newest product. In the mean time, the revival of a past successful product could buy more time, and keep their brand fresh in the minds of their consumers. This is more of a short term goal. Another use for rejuvenation, in terms of a new product release, could be to show consumers that their "favorite" company is not leaving their roots, but just branching off to different area. Most people can respect and appreciate an entity trying to make change for the future, but still retaining their identity.

The bottom line is this: consumers, especially older ones, will at least consider the idea of a product that has been reintroduced to the market. At the same time, although this may not seem very risky, that is not the case. The fact that a product was well-established in the past does not guarantee it a future, even if it revamped.