EXTENDING THE PRODUCT LIFE CYCLEBusiness Case Study

A work by Youssef Ghannam and Guillaume Grosjean

SUMMARY

Introduction

Part I : The product life cycle

Part II : Why & How extending it ?

Conclusion

PART I : THE PRODUCT LIFE CYCLE

Business Case Studies

THE PRODUCT LIFE CYCLE

• Stage 0 : the R&D phase Sunk /start-up costs

LAUNCH AND GROWTH

Step 1 : the launchNutri-grain gains 50% share of the market.

Step 2 : the growth

MATURITY

Time of maximum profitability Raise of competitors

SATURATION AND DECLINE

Saturation : Market NutriGrain

Or

Decline :

QUIZ

1.

2.

QUIZ

4.

3.The future :

PART II : WHY & HOW EXTENDING IT ?Business Case Studies

EXTENDING THE PRODUCT LIFE CYCLE

EXTENDING THE PRODUCT LIFE CYCLE

Identifying the problem

Choose an appropriate extension strategy

Nutri-Grain problems : ① The brand message② Taken the focus away③ Not enough budget④ Promotional prices instead of the brand

EXTENDING THE PRODUCT LIFE CYCLE

Renewal of the brand image Unique selling point Satisfy realistic snackers Re-focus on the core products New packaging

EXTENDING THE PRODUCT LIFE CYCLE

Product

Promotion

Place

Price

CONCLUSIONThe product life cycle shows how sales of a product can change over time. The five stages of the life product cycle are launch, growth , maturity, saturation and decline. Once a product is in the decline stage, a company needs to decide if to extend the life of the product or withdraw it from the market. It can use the Ansoff matrix as a tool to analyse which strategy is appropriate. The Ansoff matrix shows both market orientated and product orientated possibilities.

decline

matrix

saturation

growth

strategy withdraw

extend

product sales

five