How to fight price erosion – re-launches and offer updates

Is there a way to manage your portfolio so that it’s not boring for consumers, doesn’t fuel competition among your clients and is relatively resistant to a phenomenon called price erosion? Absolutely! Of course, we are talking about re-launches, i.e. an economically affordable strategy occurring in various configurations. If you feel that your product is good enough to receive a “second life”, today we will tell you how to successfully make its market debut again.

What is a re-launch?

A more advanced strategy that may or may not be used together with selective distribution will be to re-launch the product on the market or into a given category. The re-launched product should have parameters that distinguish it from the previous version or use the broadly understood market context. One of the most striking examples of such conduct will be the re-launch of Nokia 3310, which after a time of absence, has returned not only as a brand, but also with the premiere of the once flagship product.

Re-launch? On what grounds?

The decision to re-launch may be made impulsively based on conclusions from the appropriate data analysis or on the category of interest to us. Naturally, we recommend the second of the paths. Spontaneous decisions always carry certain risk. An example of a success story here is the re-launch of the iconic “take and go” segment, i.e. Frugo juice. The strategy based on two pillars: the sentiment of consumers remembering the 90s and young people who heard about the “legend”, but did not have the opportunity to try the product, proved to be sufficient in this case. Unfortunately, this is one of the few examples of stories with a “happy ending” that we can attribute to spontaneous re-launch decisions.

In most cases, we also don’t have the convenience of making autonomous decisions based on intuition. A successful re-launch requires data and in-depth analysis to minimize the risk of the entire project. Therefore, it is best to rely on platforms that will at least partly support us in this process.

Said platforms will give us a solid foundation of knowledge on which we can build the right strategy for re-launch, implementing specific goals, e.g. preventing price erosion.

What does a re-launch involve?

A re-launch usually costs around 10 to 20 percent of the marketing budget devoted to a specific product category. To recover these funds and earn, the decision on these actions must be taken at the right time. If the data we see in the reports clearly indicate a reduction in the prices of competing products or, worse, our own – we should be ready to act. A quick reaction involving the introduction of “refreshed” goods can allow you to get a temporary advantage on the shelf, generating a satisfactory profit.

Why is it worth re-launching the product?

On the other hand, it is worth remembering that “reviving” a given product in a new setting, we need much less investment in its development than in the case of launching a new portfolio item. We can also enrich the refreshed range with new features or functions that will allow us to effectively compete even with the newer products. An interesting strategy is also to link the relaunched product, e.g. with a media event, which can recently be seen on the example of cooperation between Coca-Cola and Netflix at the product placement New Coke in the series “Stranger Things”.

Re-launch is also a great tool for increasing the value of a product, which stands out among the available goods on the current price shelf and can successfully compete in the higher category. Introducing it with a new price and parameters naturally allows consumers to be reminded of it, and the brand helps to protect the product against a tendency to lower prices among customers.

Undoubtedly, the most favorable situation will be when the demand for the product is high, but price erosion in the category has led to the disappearance of the competitive product. In this case, the decision to re-launch may allow the utilization of the created niche almost entirely, but only in the event that we notice at the right moment that the opportunity arose! Benefits from these circumstances can only be derived from price monitoring of the entire product category. Sounds complicated? See how easy it can be with us!


A peculiar variant of this situation is a market trend – e.g. a temporary fashion for a given product, ingredient or value that none of your competitors has not yet noticed and turned into sales. Remember that often even small changes in the product configuration allow you to take advantage of this trend and gain new consumers. A great example is the New Coke promotional campaign discussed above – the product suffered a defeat during the launch in the 80s to return in glory and glory when the series happening in that era).


  • The strategy described today is one of the most universal, used not only to fight price erosion. With its help, we can effectively prevent a drop in the value of the category or even the entire brand.
  • With proper market monitoring – it allows you to gain competitive advantage, or at least increase profits.
  • Justification for re-launching can be found primarily in the data, but also in a broad market context.
  • Like any process, re-launch requires a solid strategic foundation and time to implement, but compared to a launchour assistance it is much cheaper, less time consuming and ultimately more reliable.
  • Thoughtful re-launch often allows the product to be upgraded to a higher category.


One thing is certain – it is worth having the strategies described above, be prepared for their use and regularly monitor the actions of customers and consumers through appropriate automated solutions. Only regularly collected and analyzed data allow us to make the right decisions!