E XTENDING THE PRODUCT LIFE CYCLE Business Case Study A work by Youssef Ghannam and Guillaume Grosjean

S UMMARY Introduction Part I : The product life cycle Part II : Why & How extending it ? Conclusion

P ART I : THE PRODUCT LIFE CYCLE Business Case Studies

T HE PRODUCT LIFE CYCLE Stage 0 : the R&D phase  Sunk /start-up costs

L AUNCH AND GROWTH Step 1 : the launch Nutri-grain gains 50% share of the market. Step 2 : the growth

M ATURITY Time of maximum profitability Raise of competitors

S ATURATION AND DECLINE Saturation : Market NutriGrain Or Decline :

Q UIZ 1. 2.

Q UIZ The future :

P ART II : W HY & H OW EXTENDING IT ? Business Case Studies

E XTENDING THE PRODUCT LIFE CYCLE

Identifying the problem Choose an appropriate extension strategy Nutri-Grain problems : ① The brand message ② Taken the focus away ③ Not enough budget ④ Promotional prices instead of the brand

E XTENDING THE PRODUCT LIFE CYCLE Renewal of the brand image Unique selling point Satisfy realistic snackers Re-focus on the core products New packaging

E XTENDING THE PRODUCT LIFE CYCLE Product Promotion Place Price

C ONCLUSION The 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 strategywithdraw extend productsales five