At some point in a product’s life cycle, it reaches a stage of maturity, in which there is a slowdown in the growth rate of sales. This stage poses challenges to marketing management to extend the product life cycle and delay the decline stage. There are many strategies that can be implemented to accomplish this.
Market Modification
The company may choose to expand the market for its mature brand by working to increase the number of users of the brand, as well as the rate of use per user. The increase in the number of users of the brand can be achieved through:
1. Conversion of non-users: This strategy can be seen in Cebu Pacific, which clearly targets the middle class. His ridiculously low fares communicate the message that it truly is “time for every John to fly.”
2. Enter new market segments: The company may also choose to introduce the mature product into a new market segment. For example, baby powder can also be promoted for tweens, teens, and even adults.
3. Win customers from the competition: This strategy is being implemented in the LPG industry. Non-users can buy LPG of your brand using your current LPG tank.
Likewise, the usage rate per user can be increased by convincing customers of:
1. Use the product on more occasions: The promotion of shampoos for daily use is a clear example of this strategy.
2. Use more of the product on each occasion: Bear Brand’s campaign to “drink not just one, but two glasses of milk a day” obviously promotes increased use of the product.
3. Use the product in new ways: An example of this strategy would include the promotion of vinegar as a household cleaning agent.
Product Modification
Marketers can also stimulate sales by changing product features through:
1. Quality improvement: This strategy aims to increase the functional performance of the product. The release of a “new and improved” version of a product can potentially extend the life cycle of the product.
2. Feature improvements: A company may consider adding new features to the product. This is illustrated in the mobile phone industry, where new features are added to existing products and relaunched (for example, Nokia’s N97 and N97i, among others).
3. Style upgrade: This is intended to increase the aesthetic appeal of the product. For example, automobile companies periodically introduce new car models with styling improvements.
Modification of the marketing program
To extend the life cycle of a product, managers may also choose to modify other elements of the marketing program, including:
1. Price: Companies need to assess whether implementing price cuts or increases could stimulate sales.
2. Distribution: Current distribution channels could be reviewed to consider gaining more support from existing outlets or penetrating more outlets.
3. Sale promotion: Sales promotion strategies such as commercial offers, discount coupons, rebates, etc. it could also be implemented to stimulate sales.
4. Personal sale: The number and quality of the sales force could also be changed as deemed necessary. Salespeople’s training, specialization, and even compensation should also be evaluated and changed if necessary.
5. Services: Companies can also provide better services to establish customer loyalty. For example, they may provide faster delivery, greater technical support, or offer more credit.
