In order to market a product, a significant budget is allocated, an advertising campaign is carried out, the commercials are instructed, sales are promoted… But, what happens if you kill him The marketing department wonders what to do: there’s no budget, there’s no incentive to withdraw the item, the distributors want to eliminate it and are pushing us… All the excitement about the launch turns to discouragement and a sense of failure.
It is estimated that 80% of new releases do not live up to 10 months. A clear idea that we must not forget and that not all entrepreneurs have in their heads: The cost of not taking back a product on time is much more serious than trying to preserve it, both in terms of money and image.
How to kill the product
The correct process goes through the following steps:
The first consists of the basic analysis why the product was unsuccessful. If there is a cure, use it to try to maintain it, but if there is no solution, eliminate it. The internal workshop must be held continuously: at least twice a year, at Christmas and in summer.
Once the decision has been made to remove a product, communicate it properly. The customer is becoming more and more demanding. Give as much information as possible. In a matter as sensitive as taking back a product You must be transparent to dealers, sales reps and customers.
Explain to the dealer
Remember that taking back a product means there is a gap in the store, on the shelves and on the stalls. You create a problem with what It is necessary to offer all possible guarantees and provide the necessary facilities.
Finally, the final customers are both the consumer and the retailer, because the latter decides whether to choose from the wide range of references that we offer or to display it in a prominent or secondary position. If for some reason the retailer is not attracted to the product (e.g. because the commercial doesn’t know how to explain it), we can find ourselves in a situation where the product dies without even having lived.
notify the consumer
This point strongly depends on the experience relationship with the product. If it’s more personal and permanent, you have to know how to explain it. When it comes to vehicles the user is afraid to think that he will run out of spare parts; It must be ensured that the supply and maintenance is guaranteed.
With colognes or cosmetic products, the relationship is even more personal. Here it is advisable to announce withdrawal, although there is usually one Cycle policy in which renewed versions of the product appear on an ongoing basis.
The sales department, which will play an important role in the abolition of the product, must be fully involved. Many companies forget that it is a task that must be encouraged, for example to avoid problems with dealers or the return of goods that you cannot put on the market. If you can’t offer economic variables, motivate them by promising them a star product portfolio.
There are sectors like textile or technology where there is a strategy to eliminate products before the expiry date because they already have a replacement. Here, the ability to innovate is ahead of consumption. In these cases, old products are withdrawn as planned.
The manufacturer does not abandon the consumer, but gradually gives him opportunities to join the new product. It is a question of gradually separating from the old product, for example no longer releasing games or premieres in this format and betting on the new format, so that the consumer increasingly chooses the novelty and turns to distribution, reducing stocks and reduction in prices.
For safety reasons
Another possibility is that a product has to be recalled for safety reasons. When errors of this type are detected, the problem detection system and the ability to solve it must be well organized. It is necessary to inform the market (customers, distributors…) of what has happened and the actions taken.
The best, Maximum transparency and fast product removal. In this way you offer an image of seriousness and rigor. The consequences of withholding important information (particularly when consumers are at risk to health or safety) or keeping a degraded product can be so severe, legally or financially, that it could lead to the demise of a business.
The substitution technique
If the target audience interests you and you don’t want them to go to the competition, launch a new product to replace the old one. This happens with technological products: we see it in video games or in electronic devices where new versions are constantly appearing to replace the previous ones.
It also applies to consumer products: dairy, beverages… These are sectors with very fast lifecycles, where shelf occupancy prevails and it is the retailers themselves who require a continuous launch of new flavors or new products.
Change or reduce the market
In At times, you may be interested in continuing in your geographic area, either because your competition is strong or because it forces you to use different business strategies.
Central Lechera Asturiana rose to this challenge. In this new business approach, the company’s goal was to strengthen its position in the milk, cream and butter categories in which it was already a leader, and to concentrate the yoghurt business in the north-west of the peninsula.
let it die
If that’s what you want, stop investing in the product until it goes off the market. It is enough not to allocate any investment. Withdrawing a product is very painful and always leaves you with a certain sense of failure, but it’s necessary to have options in stock so that this pothole doesn’t break you.
You should also not force the situation. If it doesn’t sell, don’t lower the price because it can leave a bad taste in the mouth of the street, in the store, and in the consumer. Sometimes it dies alone, sometimes because the customer isn’t interested and doesn’t put it up for sale. If sales continue to fall, the best option is to stop production, delist it, and withdraw it from the market.