Introduction Growth Maturity Decline Laggards 16% Mass Mkt 68 % Conservatives Early adopter 13.5% Pragmatists Innovative 2.5% Visionaries Customers Few . Shakeout of weak Many fight for same pie Growing Nil Competitors Pushes cost up Increased competition reduces profits and cuts into total profits Reaches peak Loss Investment in prodn & mktg Profit Declining Growth rate redn Peak sales Rapid Low Sales
Minimal to none. Perhaps negative selective Low enough to permit liquidation of inventory Minimal changes to product. Line reduces to best servers Redn of expenses. Prepare for removal of prod. Squeeze all benefits of the product D More user/ usage. Loyalties Intensive Market prices. Avoid war Differentiate. Full line Find new users keep current satisfied Defend brand. Stop competitors from entry M Persuasive. Loyalties Intensive High Product /design Improvement. Expand line Mkt Penetration. Persuade mass Mkt to prefer your brand G Informative. Perhaps publicity Selective Skim Pen Cost+ Cmp Basic Design low learning products Mkt acceptance. Foster product awareness and trial I Promotion Distribution Price Product Overall strategy
Strategies for existing products
If you have a huge customer base, but is in the process of being replaced, lower OH and cost of production
Change the product?
If things wont work, drop the product. Why not?
Product elimination decisions
Customers have no alternatives despite changes in environment- CRDI- do not eliminate
Will relationship gets jeopardized
Will it hurt the profitability of other products
Corporate image-raise doubts on the reliability of the firm