What are examples of each of the 4 product life extension strategies?
The main stages of the product life cycle are:
1. Introduction - researching, developing and then launching the product
2. Growth - when sales are increasing at their fastest rate
3. Maturity - sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation
4. Decline - final stage of the cycle, when sales begin to fall
This can be illustrated by looking at the sales during the time period of the product. A branded good can enjoy continuous growth, such as Microsoft, because the product is being constantly improved and advertised, and maintains a strong brand loyalty.
Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales. Examples of the techniques are:
Advertising - try to gain a new audience or remind the current audience
Price reduction - more attractive to customers
Adding value - add new features to the current product, e.g. video messaging on mobile phones
Explore new markets - try selling abroad
New packaging - brightening up old packaging, or subtle changes such as putting crisps in foil packets or Seventies music compilations.