The Marketing Mix: Product Product Life Cycle – Extension Strategies Today you will know how the product life cycle can be extended You will understand the strategies businesses use to extend the life of products You will be able to apply this theory and understanding to real products
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The Marketing Mix: Product Product Life Cycle – Extension Strategies Today you will know how the product life cycle can be extended You will understand.
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The Marketing Mix: Product
Product Life Cycle – Extension Strategies
Today you will know how the product life cycle can be extended
You will understand the strategies businesses use to extend the life of products
You will be able to apply this theory and understanding to real products
Extension StrategiesA firm may try to prevent sales from going into decline by
using extension strategies.
Examples include:
Increasing the use of the product
Encouraging the use of the product on more occasions
Reducing the price
Adapting the product - extra ingredients, new improved flavour etc
Introducing promotional offers - e.g. competitions
New advertising campaigns
Changing the image of the product through promotion methods and branding - e.g. vodka now appeals to a younger audience
Extension Strategies:Product Life
CyclesSales
Time
Effects of ExtensionStrategies
Other options:
Terminate production OR Continue to let the product sales decline
Examples of Extension Strategies:
Ford re-launched its KA with different features, to target new customers, and increase sales.
Kellogg’s in their adverts suggest eating cereal at any time in the day not just the traditional breakfast time. This encourages consumers to increase their use of the product and hopefully increasing sales.
Johnson’s baby shampoo increased the length of its life cycle by targeting adults to use the product as well as babies therefore opening up new markets.
Smarties recently released their new packaging and have ditched the cylindrical design and replaced it with a hexagonal pack.
Student Activity In pairs provide an example of a way in which each of these
products has used an extension strategy in it life cycle and think of an extension strategy you feel it could use to increase sales:
Sony Ericsson Mobile phones Walkers Crisps GHD hair straightners McDonald Happy Meals
Once complete discuss your extension strategies with the group next to you. Make a judgement on which extension strategy you feel is the best and why.
Write this up.
The Product Life Cycle:McDonalds
Activity
McDonalds has used extension strategies on its Happy Meal products by providing healthy alternative options to
carbonated drinks and Fries. Based on your knowledge of McDonalds and the product lifecycle complete the two
questions below:
1. Analyse two factors you believe have influenced McDonalds decision to change their Happy Meal product. (6 marks)
2. Evaluate the success of this new strategy. (10 marks) Here you need to explain both sides of the argument and then
make a judgement based on which factors you consider the most important.
What extension strategy has each of these products used?
Additional features
New uses and aiming at different market segments
Product modification
New market segments
Increased usage
Starter Activity: Product Life Cycle
Activity
Draw a basic product life cycle for each of the following types of products…
a) flop productb) a product with seasonal salesc) a product that has used multiple extensionsd) a product that has had a long life with high salese) a fad product that has had a short life