extending the product life cycle
DESCRIPTION
Extending the product life cycle. Business 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. - PowerPoint PPT PresentationTRANSCRIPT
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