Download MANAGING PRODUCTS AND BRANDS PRODUCT LIFE CYCLE

MANAGING PRODUCTS AND BRANDS
PRODUCT LIFE CYCLE: STAGES
Introduction
Growth
Maturity
Decline
Relate each stage to marketing objectives &
strategies (marketing mix actions)
INTRODUCTION:
Stimulate primary demand ◊ for product class
Create selective demand ◊ preference for a
specific brand ◊ educating the consumers
Pricing: skimming vs penetration
Place: limited ◊ convince channel to carry
GROWTH:
Rapid increases in sales ◊ new users + repeat
purchasers
Profit peaks
Competitors enter ◊ more competitive
Overall mktg strategy: differentiate ◊ improve
product, new features added (layering), product
proliferation
Place: expand distribution, more outlets
Pricing: to gain market share, offer deals
Promo: stress points of difference
MATURITY STAGE:
Slowing down of total industry sales
Market saturation
Shakeout: marginal firms eliminated
CB: mostly repeat purchasers
Profitability: declines ◊ fierce price fights
Strategy:
- hold market share
- differentiate product
- find new users
- find new uses
- reduce overall marketing costs
DECLINE STAGE:
Sales and profits drop
New technologies replace current tech
Elimination: drop product from product line
Harvest: retains product but reduce mktg costs
MANAGING THE PLC
Product manager:
Brand manager: in charge of mktg efforts for
brand ◊ product category manager
Product managers: responsible for seeing
product thru its life
Modifying the product:
Altering attributes of product to enhance value
and sales ◊ quality, performance, aesthetics
Modifying the Market:
Find new customers/users
Increase usage – milk
Create new use situation:
OJ not for breakfast anymore
Burger King ◊ in-between meal snacks
Repositioning the Product:
Change the place a product occupies in the
consumer’s mind. HOW?
a) react to competitor’s position – avoidance
- New Balance: focus on comfort, fit
b) reach a new market – rethink context of use
- St Joseph Aspirin: mild for infants ◊ adults
c) catch a rising trend: health trends,
convenience trend ..
- Quaker Oats: oatmeal ◊ low-saturated fat,
low-cholesterol diet ◊ reduce heart disease
risk
d) change value offered:
- trade up: Michelin/Goodyear ◊ ‘run-flat’
tires up to 55 miles after total air loss
- trade down: reduce number of features,
quality, or price