Starter On the iMac screen, list all the products that Apple sell that you can think of. Extension: Analyse what the graphic to the right tells us about Apple

Learning Objectives How does a company assess their products? LO1: Explain a product life cycle and how it is used LO2: Construct a product life cycle LO3: Explain what a Boston Matrix is and how it is used LO4: Construct a Boston Matrix for a company LO5: Evaluate the value of these tools to assess a product portfolio

Apple Products List these products from newest to oldest in terms of when they were released. 1. Apple TV 2. iPad 3. iPhone 6 4. iMac Air 5. iMac 6. iPod Touch 7. iPod Shuffle Touch 8. iPod Shuffle 9. iPod

Product Life Cycle This is a tool used to assess how old a product is and what its sales are like during this time. Often companies change what they are doing and how they approach a product depending on the stage they are at in the product life cycle.

Product Life Cycle - Diagram 1. Introduction: Sales are low as the new idea is first introduced to the market. 2. Growth: Rapid growth in sales & profits. 3. Maturity: Tough competition means sales begin to level off. 4. Extension: This is a strategy used be business to boost sales of a mature product. 5. Decline: Shrinking market, sales decline. EXTENSION

Product Lifecycle - Diagram On your tables draw a product life cycle and match any products that you can think of to the correct stage of the product life cycle. EXTENSION

Draw a pop up product life cycle in your book Complete the tasks for your target grade (and try some above!) Fold paper in half, stick the back in your book. Cut your paper upwards into 4 sections so you can lift 4 flaps. Task

Listen Right For the next 3 minutes you are not allowed to use your pen You need to remember the information and examples I am giving you C grade: you must then create a mind map that includes all 5 of the key strategies on how a company can extend their product life cycle B grade: you must remember an example for at least two of the strategies A grade: you must remember an example for every strategy and put as much information as you can. A* grade: rank the strategies from 1 to 5 with 1 being the best and 5 being the worst – can you justify your opinion?

Find new uses for the products

Finding new markets for existing products

Develop a wider product range

Aiming the product towards specific target markets

Changing appearance or packaging

Listen Right C grade: you must then create a mind map that includes all 5 of the key strategies on how a company can extend their product life cycle B grade: you must remember an example for at least two of the strategies A grade: you must remember an example for every strategy and put as much information as you can. A* grade: rank the strategies from 1 to 5 with 1 being the best and 5 being the worst – can you justify your opinion?

Coca – Cola Timeline 1883 Frank Mason Robinson begins developing Coca-Cola 1885 Coca-Cola launched – product and Spencarian script typeface introduced 1915 Famous ‘Contour Bottle’ introduced 1982 Diet Coke launched 1985 Cherry Coke launched 1992 New Coke launched 1993 ‘Classic’ Coke launched (re-launch of pre-new coke formula) 2005 Coke Zero launched 2005 Coke with Lemon launched 2006 Coke with Vanilla / Lime introduced 2013 Coca-Cola launched it’s ‘Share a Coke’ campaign, selling personalised bottles 2014 Coca-Cola Life launched in the UK – a lower calorie alternative As a result of these extension strategies, Coke has maintained a very high market share of the soft drinks market for over 20 years. 1. Why have Coca-Cola had to adapt its product so often? 2. Why does it have to launch extension strategies now just to maintain its market share? Extension: Can you think of another business who extended their product life cycle? If so, write a paragraph explaining what they did and if you think it was successful.

Task On your tables list as many Virgin companies as you can

Self Assess – How many did you get?

But how do you decide when enough is enough?

/Problem Child

Boston Matrix High Market Share but Low Market Growth These are the ones everybody wants. This is where the majority of a company’s cash comes from. Costs are low, as they have already been promoted and are produced in high volumes. They are in the maturity phase of the product life cycle. Washing Machines Dish Washers Items that are always required and produced by many in the market.

Boston Matrix High Market Share and High Market Growth These are future Cash Cows and have the potential to bring the company a lot of money. They need continuous advertising to ensure they do well. These are in the growth stage of the product life cycle. Tablets Smart TVs Popular items that are selling well.

Boston Matrix Low Market Share but High Market Growth These are new products and are usually in the introduction stage of the product life cycle. These need heavy marketing to give them a chance to succeed. Coffee Makers These are the unknowns…

Boston Matrix Low Market Share and Low Market Growth These are the lost causes. Businesses will try and get what profit they can before discontinuing them or selling them off. These are in the decline stage of the product life cycle. Digital Camera’s These items are no longer required as other items can do the job. e.g. Phones

Make a 3D Boston Matrix Complete the tasks for your target grade (and try the one above!) The exemplar book is at the front if you need help! Cut your A4 sheet in half. Fold both sides into the middle. Stick the back in your book. Cut the front in half in the middle to produce 4 flaps to lift.

/Problem Child Virgin believe they have an excellent product portfolio. To what extent do you agree with this statement? (9 marks) PEE for a good product portfolio PEE for a poor product portfolio DISCOM conclusion for to what extent you agree

Review The Product Life Cycle and Boston Matrix are a waste of time because it doesn’t matter what a company does, the customer is the key. To what extent do you agree with this statement? As a group, write a 30 word response to this on your table. Be prepared to feedback!