SUCCESS AND FAILURE OFPRODUCT REJUVINATION

PRODUCT REJUVINATION

Creating a large surge in sales for a product through intense marketing effort.

It Involves adding value to an existing brand by improving product attributes and enhancing its overall appeal

FEATURES• Less Risk Rejuvenation strategies are safer than product development, where the odds for success are low. Product development involves risk because of capital shortages, short product life cycles, keen competition, and many other potential pitfalls. To companies with lower risk propensities, the cost involved in rejuvenation is apparently more attractive than the uncertainty inherent in entering new, unfamiliar, and possibly highly competitive growth markets.

¨ Lower Costs¨ Rejuvenation strategies reduce various types of costs.

Promotional costs are reduced because of prior customer familiarity. Product development costs become nonexistent, or nearly so. Fewer expenditures are required to obtain the cooperation of trade channel members. Production and technology costs are cut by capitalizing on past experience with suppliers of equipment, raw materials, and component parts. Prior marketing and distribution experience minimizes time, which translates into lower costs. New products are created from old products at a fraction of the cost incurred in developing new ones from scratch.

Less Time Rejuvenation strategies also cut time in many ways. Up front product development is not required. Few product alterations are necessary to reintroduce the product. Time is further compressed because companies capitalize on prior manufacturing know-how and on past experience with marketers, distributors, and suppliers of equipment, raw materials, and component parts. Less time translates into lower costs and higher profitability, which in turn enables firms to invest elsewhere.

Cheaper Market Share• Rejuvenating a product is a cheaper way to gain

market share than marketing new products that must crash consumers' recognition barriers. For abandoned or declining products, markets exist that are waiting to be served. Compared to new products, for which heavy advertising is needed to build awareness, abandoned and declining products

• Higher ProfitsAbandoned and declining products may be very profitable when handled correctly. Low-growth, small-share businesses (or products) seem to generate more funds than typical startups. They follow narrow product lines, avoid price competition with leaders, and stress product quality. Efficiency, brand recognition, superior product quality, and a precise focus translate into high performance. Rejuvenated businesses can focus their endeavors in many ways--customer type, geography, product characteristics, and so on.

OBJECTIVES

• It aims at revival of brand • Even healthy, successful brands may need

occasional rejuvenation.• It helps keeps the brand live and in focus.

STEPS IN REJUVENATION

1. Determine the reasons for the product's abandonment or decline.

2. Examine whether the forces in the macro environment support a rejuvenation strategy.

3. Examine what the product name communicates to consumers.

4. Explore whether there is a potential segment to be reached, as well as competitors' strengths and weaknesses in that potential segment.

5. Examine the possibilities of creating value for

customers.

FAILED REJUVENATION

• MicroSoft VistaIn 2007, when Microsoft launched Windows Vista, the media and the public had high expectations. So did the company, which allotted $500 million for marketing and predicted that 50% of users would run the premium edition within two years. But the software had so many compatibility and performance problems that even Microsoft’s most loyal customers revolted. Vista flopped, and Apple lampooned it in an ad campaign (“I’m a Mac”), causing many consumers to believe that Vista had even more problems than it did.

• Kitchen Entrees by Colgate Colgate launched a line of frozen dinners. Consumers can eat a Colgate meal, then brush their teeth with Colgate Tooth paste, Unfortunately for them , the thought of toothpaste failed to the consumers appetite for a chicken stir-fry. The product was a complete bust, and was pulled from the shelves shortly after.

• Crystal Pepsi It’s a new cola as a clear liquid. Which was not helped by the fact that crystal didn’t taste like cola at all . In fact, no one really knew what it tasted like- just that it was not good. But pepsi didnt give up completely on its quest for purity. Shortly after the clear cola fiasco, the company decide to get in on another, more widely accepetd clear liquid ,market :bottled water. That went much better for them.

WHY Failure.?

• Wrong Assumption On Market• High Expectation• Lack Of Consumer Coordination• Wrong Marketing Policies• Lack Of Effective Rejuvenation Strategies

SUCCESSFUL PRODUCT REJUVENATION

• Windows 7 Windows 7 is the successful version of MicroSoft system softwares. This is altered and modified from the Failure version of Windows Vista. The main Attraction is , the product have many versions like Premium, Professional, Home basic. An very other attraction is it’s very user-friendly and also it will run on Low processors and RAM Machines.

• Google Plus Google Plus is a successful product from Google Inc. Everyone knows Google Buzz is a Failed Social Networking site from Google Inc. Google Buzz didn’t find a good platform from Social Networking area because of the grand acceptance of Facebook and Twitter. Google + is launched by 2011 as it is now a very much successful Social Site. Sharing ,GIF Image Uploads, Direct Webcam, YouTube Direct comment etc are the great features of it.

Keys To Success

• Discover Details of your customers unmet needs.

• Develop Hypotheses• Build a prototype solution.• Test with customers• Analyze Variance• Pick strategy

CONCLUSION

• The current scenario shows the product Rejuvenation is a process of retaining the customer attraction and also keeping the customer close to the business.

• Many product failed because of the wrong rejuvenation strategies and fail in marketing policies.

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