What is the difference between the 4 different product life extension strategies?
1. New Look: Changing a product's appearance or even just its packaging can be enough to rejuvenate sales.
=Soft drinks manufacturers have begun selling their products in 7.5-ounce cans and 1-liter plastic bottles as well as the traditional 12-ounce and 2-liter varieties.
2. New Pricing:Reducing the price of a product is the classic "supply and demand" response to declining sales. But when handled strategically, price reductions can accomplish more than postponing a product's inevitable demise. A lower price, especially for luxury items, can entice new customers to indulge in a brand name without the need to justify a high price. A good way to accomplish this is by offering a "basic" version of the product. Before computer laser printers became affordable to nearly everyone, manufacturers could sell slower black-and-white versions of their signature models. BMW is one car maker that has employed this strategy, giving buyers a lower sticker price in exchange for the chance to own a Beemer.
3. New Uses: Adding new features and finding new uses for technology can spark demand and exert a profound effect on a product's life cycle. Arm & Hammer's marketing department is a master of this tactic, devising dozens of uses for the company's baking soda. In fact, more baking soda is used as bath salt, toothpaste, cleanser and odor neutralizer than for cookies and pie crusts. Mobile phones are continually adding functionality, from cameras to texting, to GPS and the apps that become available every week.
4. New Markets: Introducing a product to a new market - whether a different location, demographic or other targeted market segment - can bring in new customers and perhaps even initiate a new growth phase. The beauty of this strategy is that it often requires little development. In fact, customers often devise the new uses. Cereal manufacturers pitch their products to dieters as late-night or mid-day snacks, for example. Perhaps it's only a matter of time before Pedialyte's makers take a lesson from college students and begin marketing their product as a hangover remedy. A common move into a new market involves making professional-grade products available to the general public. Notable examples include cookware and video-editing software.