Why relaunching cars makes sense

Rolls RoycesIt may be debatable that whether relaunching a produce makes sense on the grounds on the stretched brand equity versus the potential to tap higher volumes, but it has been shown in the recent past that the relaunched products have done the trick for the company.

Be it the Rolls Royces, Mercs, Hondas or Volkswagens, all the companies have shown that relaunching makes a lot of sense in the automotive world. While the market leader Maruti Suzuki decided to drop the Zen brand from its portfolio last year, the company has recently relaunched the all new WagonR for the Indian consumer.

Experts say that relaunching the same brand displays the high R&D capability of the auto major. However, in case of Maruti it is also believed that the WagonR brand still has a lot of ground to cover and hence relaunching made a lot of sense in the Indian market. But it may be noted here that the relaunched product also plays a critical part in the brand equity as the consumer already has a benchmark for the brand in his mind and if the produce isn't able to match the level of quality, the brand is very severely affected.