1. Integrated Marketing Mix Strategies for Mod 6
Lisa Bartolotta
Bus. 504
Aug. 15, 2015
Instructor – Dr. Maryann Lamer
Bus/ 504 Final Assignment – Product Life Cycle Strategies
DIETARY SUPPLEMENTS MARKET

2. TABLE OF CONTENTS
Introduction……………………………………………………………………………pg.3
Marketing Strategies:
Introductory Phase……………………………………………………………………Pg. 5.
Growth Phase…………………………………………………………………………Pg.7
Maturity Phase……………………………………………………………………….Pg. 8.
Declining Phase………………………………………………………………………Pg 9
Extended Service Marketing Mix:
People………………………………………………………………………………..Pg 11
Process………………………………………………………………………………Pg 12.
Physical Evidence……………………………………………………………………Pg.12
Conclusion……………………………………………………………………………Pg 14
Final Words…………………………………………………………………………..Pg 14
Abstract………………………………………………………………………………Pg 15
References……………………………………………………………………………Pg 18
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3. Lisa Bartolotta
DIETARY SUPPLEMENTS MARKET
INTRODUCTION
The nutritional supplement market is a huge semi-mature market characterized by high-
growth rates, medium barriers to entry and large competitors which has grown to over 6.5
billion annually. Herbal sales alone are growing to as much as 20% each year. The aging
baby boomers whom are concerned about their health lead this market. Many companies
have reported annual growth levels of 50%. I’ve listed the major market leaders below:
• General Nutritional Companies, Inc. (GNC)
• Natures Sunshine Products, Inc.
• Rexall Sundown, Inc.
• International Vitamin Company, Inc.
The Dietary Nutritional market is mainly distributed by mass market retailers such as
Fred Myer and Rite Aide Stores, Direct sales organizations, health food stores such as
GNC and mail order catalogs and the internet (mplans, 2015).
As I learned this term in class there are 4 stages of a Product Life Cycle; introductory,
growth, maturity and declining stages. The first stage called the introductory stage a
company has slow sales growth as the product is introduced to the market and profits are
negative because the company has a heavy amount of expenses.
The second stage called the Growth stage is when a company will spend more money on
promoting the product to a much broader audience market. During the Growth Stage a
company’s profits will gradually improve, product is accepted into the market, margins
come down and the sales volumes continue to grow until they reach a point of market
saturation or maturity.
The third stage called the maturity stage is when sales growth slows down because the
product has already been accepted by most of its potential customers. Profits stabilize or
decline because of an increase in its competition. Prices and margins are now much lower
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4. as the company makes a lot of effort to gain more distribution or shares. As time goes on,
the market saturation may continue, tastes of consumers may change or better options for
companies’ consumers may enter which will lead or push the product into the declining
stage (ethnicomm.com, 2015).
At the declining stage sales move in a downward slope and profits gradually disappear.
This paper will describe the four stages and my decisions as my new supplement
vitamin/drug moves through the four stages of the Pioneer strategy. In addition I will go
further and describe the Extended Service Marketing Mix which are; people, process and
physical evidence. The extended service marketing mix now makes up the 7 ps of the
marketing mix. Dietary supplements are closely related to the drug industry so they go
through the same cycle-recycle patterns. In the drug industry the pharmaceutical
company will be aggressive in promoting the new drug by producing the first cycle. Later
on as it moves through the maturity and declining stages and another promotion push will
produce a second cycle. Another pattern is called the Scalloped PLC in which sales pass
through a succession of life cycles based upon the discovery of the new product
characteristics, uses or users. Just as with a drug my new dietary supplement will go
through the same cycles and stages as described above. My paper describes the 4 stages
of a new pioneer product in its Life Cycle and the 7 ps of the marketing mix (Kotler &
Keller, Marketing Management, 2012).
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5. MARKETING STRATEGIES
Introduction Stage
Osteoporosis dietary supplement to increase the immune system, lower cholesterol and
blood pressure and increase collagen and protein. At the introductory stage it will be
priced at $15.00 and only 1 pill a day will be needed to be taken. There will be one pill
version for women 35 and up and will come in a light lavender color. In order to entice
customers to purchase I will promote it though advertisements on the internet; text
messages, social media networks and at health clinics. I will offer coupons and packets
with one pack of 5 pills for samples so women can try them. Consumers can download
and print coupons off the internet or their mobile device to purchase the product on social
networks and a link from a text message. There will also be a link to click for consumers
to fill out a form to have samples mailed to them to try for free (MaRS, 2009). There will
be samples and coupons at grocery store and pharmacy’s in the dietary supplement isles.
The supplement will be introduced for women ages 35-55 and will be introduced in the
Eastern/Southern US.
I will use value pricing at the introductory stage because at the introductory stage it can
be risky and expensive at the same time. At the value pricing method during the
introductory stage I want to gain loyal customers so the value pricing method combined
with skimming & Penetration will be the right choice for my new dietary supplement.
Value pricing involves trying to win loyal customers by charging a fairly low price for
high quality products and/or services. It’s not just offering lower prices but also
reengineering the company’s operations to become a low-cost producer without
sacrificing quality to attract a large number of value-conscious customers (Kotler &
Keller, 2012). Skimming is designed to obtain as much margin per unit as possible
which allows a company to recover its new product investments much quicker. During
the introductory stage there will be many manufacturing, economic and promotional costs
so by skimming the price I will be allowed to recover my costs more quickly as
customers are much more willing to try a new product at a lower cost. I will compare my
pricing by offering a lower price that is affordable to the market area helping me to
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6. increase profits and sales. In addition penetration will allow me to gain markets because
the dietary supplement market is huge and I will have a lot of competition in the market
so this will also make sense to me and help me to gain markets during the introductory
stage Walker & Mullins, 2014).
INTRODUCTORY STAGE 4 Ps OF MARKETING
Product Place Promotion Pricing
Health,
grocery, drug,
discount and
convenient
stores.
Promote through
advertising, PR,
media, social
media and E and
M commercing.
Value to
customer
Trade shows to
introduce and
promote
dietary
supplement.
Use laptops,
desk tops and
mobile devices.
Customers pay
asking price if
they feel it’s
valuable.
Online, mobile
devices and E
and M
commercing.
Ad campaigns,
social media and
blogs to build
brand.
Price range
determined by
market demand
and company
costs.
Samples to
stores and
catalogs to
promote and
sell product.
Start slowly
building
audience in
small markets
then move into
small specialty
health stores.
Take into
account what
market demand
is.
Use sales
representatives:
part of
marketing
department.
Help to generate
sufficient
customer market
demand.
Value pricing
method and
skimming and
penetration.
Slowly larger
chain stores will
become
interested in
carrying new
dietary
supplement.
Gain loyal
customers.
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7. Growth Phase
In the growth stage the price will fall to $10.00. The quality of the product will be
increased. For instance more vitamin D and other vitamins and minerals such as
magnesium and zinc will be added to make the product healthier for consumers. I will
continue to advertise through the internet and social media, television and radio and add
health magazines to inform consumers about the new supplement. In addition I plan on
informing the product through social media blogs, health fairs and presentations at health
clinics and hospitals and health clubs. As the sales begin to pick up I plan on adding more
flavors and colors, chewable and also promote the same pill in a different package for
men as there are also men with osteoporosis (Kotler & Keller, 2012). As it grows and
matures and consumers are more aware of the disease there will be more packaging and
more improved versions for women and men 35 and older and it will also be introduced
in Europe and western areas of the US. In order to gain loyalty from customers I will
maintain my promise that the new supplement will lower cholesterol and blood pressure
and increase the immune system. More promotions such as social media, text messages
through mobile devices, health fair presentations and samples for patients will be
marketed. I also plan on using ecommerce and working with health clubs and medical
facilities on promoting through e-commerce brick and click. This will allow me to offer
different versions of the supplement on-line and work with discount stores such as Wal-
Mart and Walgreens allowing consumers to click on my advertisements and using options
such as pay now (Kotler & Keller AFFMM, 2012).
GROWTH STAGE STRATEGIES
Product Place Promotion Pricing
Improve quality of
product.
Expand to markets
outside NE, SE into
Europe and Asia.
Shift from product
awareness to
product sensitive
advertising.
Price falls from $10
-$7.00.
More vitamins and
minerals added.
Health, grocery,
drug, discount and
convenient stores.
Build upon market
demand of product
through advertising
and PR strategies.
Offer discounts for
loyal customers
spending $10.00 on
products.
Add more flavors,
colors, sizes and
versions: chewable
Trade shows to
introduce and
promote dietary
Increase distribution
coverage and enter
new distribution
Send manufacturer
coupons to catalog
companies.
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8. for example to
protect against
original version.
supplement. channels.
More packaging and
improved versions.
Online, mobile
devices and E and
M commercing.
Invest more in
marketing to
educate, build, share
and support sales
activity.
Coupons in Sunday
newspapers, online
& stores for flyers
so customers can
cut, clip ad use.
Keep promise of
lowering cholesterol
and blood pressure
and increasing
immune system.
Samples to stores
and catalogs to
promote and sell
product.
Adjustments in
marketing plan to
target larger markets
including
geographical areas.
Change product
packaging to large
print of label to
entice customers.
Use sales
representatives: part
of marketing
department.
Raise profits and
sales.
Maintain quality
while changing
features and styling
of product.
Work with
marketing manager
in creating
promotional
package.
Add men’s versions
of Osteoporosis in
different color pill.
Contact media and
social media
networks in
promoting product.
Maturity Phase
During the maturity stage sales will skyrocket – when sales plummet then the product
reaches the maturity stage. Therefore when sales are up it is time to cut prices. My
competitors who aren’t as strong in the market exit and my market share will rise.
Demand, competition and technology will remain stable.
I plan on increasing the brand and promoting more to get more customers from my
competitors. As my product moves more into the maturity stage I will add more qualities
like adding more vitamins and minerals to help increase energy level. I will also have
different packaging with different colors; example; purple for women 35-55, deep purple
for 56-66, lavender for 67-75 and grey for 76 and older and also do the same for men
(Kotler & Keller AAFFMM, 2012).
MATURITY STAGE STRATEGIES
Product Place Promotion Pricing
Market share rises. Expand globally Increase brand. Lower prices to help
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9. across the US,
Europe, Asia, Africa
and internationally.
increase sales
compared to
increased
competitors prices.
Demand,
competition and
technology remain
stable.
Expand into
shopping malls,
larger health
specialty and online
stores:
Amazon.com, Wal-
mart and GNC.
health stores.
Promote more. As competitors
leave market,
margins will
shrink.
Add more qualities
to increase energy
level.
Customers will look
for supplements
locally,
internationally,
globally online
through E and M
commercing on
laptops and mobile
devices.
Add value by
including free apps
online to make
searching through
smart phones easier.
Different packaging
with different
colors.
Invest in marketing
firm to help promote
products in store to
build customer
awareness.
More promotions in
stores, online and
through media and
banners to
encourage
customers to
purchase brand vs.
competition.
Use marketing as
main focus to entice
more customers,
grow market and
increase sales and
revenue.
Declining Phase
During the decline stage the demand for a product goes down due to many circumstances
such as; introduction of innovating a new product or customer tastes, values and beliefs
changing (Kotler & Keller, 2012). I will reposition the pill which will change customers’
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10. minds on how they categorize the pill (boundless.com). If the sales continue to splurge
then I will stop manufacturing the supplement, discontinue it and let the current inventory
run down to 0 (Brookins, 2015).
As the volume of sales declines I will focus on maintaining my market share while at the
same time maximizing my profits. I will have sales on the supplement such as buy 1, get
1 free and look at the needs of consumers and customers and make changes as needed to
suite all their needs. Any versions that aren’t selling I plan on discontinuing and
producing a new improved brand. I also plan on working with stores on offering new
packaging – a store brand package next to the manufacturing brand (Kotler & Keller
AAFFMM, 2012).
Product Place Promotion Pricing
Reposition pill to
change how
customers
categorize it
(boundless.com).
Continue to offer to
loyal market.
Target more
customers in market
area or new
markets.
Increase investment.
Improve on
products by adding
more features; more
vitamins and
minerals.
Target and invest in
markets that are
declining.
Reduce marketing
expenses by only
advertising to
individuals or
companies who
have purchased
supplement in the
past.
Decrease cost to
$5.00.
Add more pills in
package.
Place my brand next
to store brand to
help promote brand
and increase
customer awareness.
Segment email list
so that email
promotions only go
to customers who
have purchases
supplement at least
twice in the past six
month (Brookins,
2015).
Buy 1 get 1 free or
20% off purchase to
move inventory
faster.
Eliminate line that
isn’t selling
depending on sales
and demand for
brand categories
(Cannon, 2013).
Verify companies
who sell
complementary or
competing product
that I can sell my
inventory to. They
may have a target
market that is
10

11. similar to mine in
marketing dollars to
develop and
promote or
capabilities to
research to make
changes to the
supplement
(Brooklin, 2015).
Liquidate remaining
inventory of product
line where sales are
decreasing.
Promote to potential
customers if there is
a positive response.
Sell inventory to
another firm that is
willing to continue
product.
Only send coupons
and marketing
materials to stores
and catalog
companies who
have done well in
selling and
promoting
supplement.
Promote during
health fairs using
samples and
coupons.
Send samples to
doctor’s offices and
clinics.
Extended Service Marketing Mix:
People
People are all the people either directly or indirectly involved in the consumption of the
service which are an important part of the extended marketing mix. Workers who are
knowledgeable of the product and/or service, management and other consumers add
significant value to the total product or service that is offered.
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12. Process
Process is the procedure, mechanisms and flow of all the activities of which the services
are consumed (customer management processes) are all an essential element of the
marketing strategy.
Physical Evidence
And lastly, physical evidence is the ability and environment in which the service is
delivered. This involves both the tangible goods that help to communicate and perform
the service and the intangible experience of existing customers as well as the ability of
the business to relay that customer satisfaction to potential customers.
EXTENDED SERVICE MIX FOR PRODUCT LIFE CYCLE PLAN
People Process Physical Evidence
Employees Issues that affect quality of
service received by
customer
Technology to help speed
up process
Management Order taking in restaurants Mobile devices technology
to help reduce customers
waiting time.
Distributors Food preparation in
restaurants
Design: store layout,
furnishings and decor
Vendors Designing process of food
prep and order taking to
provide customers with
quality food and service,
customized food and drinks
and quick service.
Environment that service is
delivered.
Customers Staff training Tangible cues that
communicate service and
can be used to assess quality
of service provided.
Abilities, motivation and
behavior of staff affect
quality of service offered to
customers.
Technology: equipment
working properly.
Building, layout, ambience,
furnishings, décor, colors,
pictures, staff outfits
Quality of firms’ human
resources and how well they
are managed affect service
quality and customer
satisfaction customers
repeat service.
Service experience Setting: logo, objects, colors
etc. to convey roomy,
homey and family setting.
Managing to meet customer
expectations
Free WIFI and wireless
broadband.
Clean facility and
environment.
Motivated and friendly staff User friendly website. Point of sale equipment to
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13. make order taking quicker
Happy customers Clean employee and
management uniforms
Employee Competence_______________________________________Service Quality
Employee Satisfaction__________________________Customer Satisfaction/Retention
Employee Commitment↓_______________________Customert Engagement
________________________Service Innovations
People, physical layout of facility and process of activities all contribute to deliver
excellent customer service that is warm, friendly, excellent quality and quick.
CONCLUSION
13

14. In conclusion; my new dietary supplement will go through many stages as outlined in my
paper. It wills tart at the introductory stage and slowly progress into more markets as it
passes through the growth and maturity stages and finally in the declining stage it will
slip in sales a bit so some adjustments in inventory, market share, place and promotions
will have to be made in order to keep it fresh, increase sales, keep the supplement in
demand and ensure that customers are satisfied with their purchase and think it is still
valuable.
In my research I learned that it is not enough to just produce a product and move it into
the 4 different strategies, but a good marketing Plan needs to be in place and needs to be
constantly improved upon. In order to compete with my competitors I will need to make
sue that it is marketed so that consumers are well informed, aware of the product and are
willing to pay the asking price and think the price is valuable. In addition to the 4
Marketing strategies there are also Extended Service marketing Mix which are know as
the last three ps of the Marketing Mix. These are called people, process and physical
evidence. It’s not enough to promote and sell through the first four Ps. I also need to keep
in mind the people involved in the selling and marketing segments, the process of serving
customers and managing the product and customers complaints by ensuring they are
served quickly with quality service. And lastly, the atmosphere of which they are served
is also important as well as where the product is placed. For instance placing my brand
next to a store brand will help to promote my product into more markets as well as keep
customers informed about the supplement and compete with the competition.
Final Words:
I really enjoyed working on this paper though it was a bit tedious at times. Through it all
I learned that there is more to marketing a product than I ever knew.
ABSTRACT (COMPARISON CHARTS)
14

15. Summary
Introductory Growth Maturity Decline
Place Samples,trade
shows, sales
reps ;
marketing
department.
Change product
packaging,
expand to more
markets,maintain
quality while
changing
features of
product.
Sales
skyrocket,
demand,
competition
and technology
remain stable;
increase brand,
add more
qualities,
design different
colors for
different pills,
expand globally
and
internationally,
in shopping
malls, larger
health specialty
stores, and on-
line stores such
as
Amazon.com,
Wal-Mart and
GNC health
stores.
Reposition pill,
place next to
store brand in
stores target
and invest in
markets that are
declining.
Price Competitors
price, value,
marketing
demand, price
range.
Lower price,
improve quality,
add more layers,
versions, sizes,
flavors, colors
etc; offer
discounts..
Cut prices
when sales are
up, margion
shrinks as
marginal
competitors
leave market.
If the sales
continue to
splurge stop
manufacturing
supplement,
discontinue and
let current
inventory run
out (Brookins,
2015). Maintain
market share
while
maximizing
profit, buy 1,
get 1 free, 20%
discount,
liquidate
remaining
15

16. inventory
where sales are
decreasing or
sell it to
another firm
that is willing
to continue the
product.
Increase
investment,
lower price to
continue to
loyal market.
Promotion Advertising,
PR, media,
social
networks, E
and M
commercing,
ad campaigns,
slowly build
audience in
small market,
generate
sufficient
customer
market
demand.
Shift from
product-
awareness
advertising to
product sensitive
advertising,
build upon
product demand
through
advertising and
PR, increase
distribution
channels and
enter new
distribution
channels, invest i
more marketing
to educate, build,
share and
support sales
activity, make
adjustments in
marketing plan
to target larger
markets, create
promotional
package,
promote through
social media and
media.
Promote more
including social
mediam ad
banners and
media, include
free app for
ease of
searching on-
line, invest in
marketing firm
to build
customer
awareness,
grow market to
increase sales
revenue.
Add more
features such as
more minerals
and quantity
and changing
colors.
Target more
customers in
market area,
reduce
marketing
expenses,
segment email
list for only
customers who
have purchased
in the past six
months at least
twice, verify
companies to
sell to, promote
to potential
customers, only
send
promotional
materials to
customers and
companies who
have bought
pill in past,
promote at
health fairs,
16

17. send samples to
doctors offices
and clinics.
References:
17

18. Mplans (2015). E-commerce Retailer Marketing Plan. Retrieved from
http://www.mplans.com/e-commerce_retailer_marketing_plan/situation_analysis_fc.php
Booms, Bernard H. and Bitner, Mary J. (2014). 7 Ps of Marketing: Summary of the
Extended Marketing Mix. Retrieved from
http://www.valuebasedmanagement.net/methods_booms_bitner_7ps.html
Walker, Orville C. Jr., & Mullins, John W. (2014). Marketing Strategy: A Decision-
Focused Approach 8th
Edition. McGraw-Hill Company: New York, NY
Kotler, Philip & Keller, Kevin Lane. (2012). A Framework for Marketing Management
5th
Edition. Pearson Education, Inc: Upper Saddle River, NJ
Kotler, Philip & Keller, Kevin Lane (2012). Marketing Management 14th
Edition.
Pearson Education, Inc: Upper Saddle River, NJ
Ingale, Amar (2012). Product life cycle & marketing strategies. Retrieved from
http://www.slideshare.net/amaringale1/product-life-cycle-marketing-strategies
Impact of the Product Life Cycle on Marketing Strategy. Retrieved from
https://www.boundless.com/marketing/textbooks/boundless-marketing-
textbook/products-9/product-life-cycles-69/impact-of-the-product-life-cycle-on-
marketing-strategy-348-10771/
Brookins, Miranda (2015). How to Maintain a Strategy in the Decline Stage. Retrieved
from http://smallbusiness.chron.com/maintain-strategy-decline-stage-26080.html
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