The Marketing Mix:
Product
Product Life Cycle – Extension Strategies
Today you will know how the product life cycle can be
extended
You will understand the strategies businesses use to
extend the life of products
You will be able to apply this theory and understanding
to real products
Extension Strategies
A firm may try to prevent sales from going into decline by using
extension strategies.
Examples include:
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Increasing the use of the product
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Encouraging the use of the product on more occasions
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Reducing the price
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Adapting the product - extra ingredients, new improved flavour etc
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Introducing promotional offers - e.g. competitions
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New advertising campaigns
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Changing the image of the product through promotion methods and
branding - e.g. vodka now appeals to a younger audience
Extension Strategies:
Product Life Cycles
Sales
Effects of Extension
Strategies
Time
Other options:
Terminate production OR Continue to let the product sales decline
Examples of Extension Strategies:
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Ford re-launched its KA with different features, to
target new customers, and increase sales.
Kellogg’s in their adverts suggest eating cereal at any
time in the day not just the traditional breakfast time.
This encourages consumers to increase their use of the
product and hopefully increasing sales.
Johnson’s baby shampoo increased the length of its
life cycle by targeting adults to use the product as well
as babies therefore opening up new markets.
Smarties recently released their new packaging and
have ditched the cylindrical design and replaced it with
a hexagonal pack.
Student Activity
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In pairs provide an example of a way in which each of these
products has used an extension strategy in it life cycle and think of
an extension strategy you feel it could use to increase sales:
Sony Ericsson Mobile phones
Walkers Crisps
GHD hair straightners
McDonald Happy Meals
Once complete discuss your extension strategies with the group next to you. Make a
judgement on which extension strategy you feel is the best and why. Write this up.
The Product Life Cycle:
McDonalds Activity
McDonalds has used extension strategies on its Happy Meal products
by providing healthy alternative options to carbonated drinks and
Fries. Based on your knowledge of McDonalds and the product
lifecycle complete the two questions below:
1.
Analyse two factors you believe have influenced McDonalds
decision to change their Happy Meal product. (6 marks)
2.
Evaluate the success of this new strategy. (10 marks)

Here you need to explain both sides of the argument and then make a
judgement based on which factors you consider the most important.
…
mples…
Examples…
What extension strategy has each of these products used?
Increased
usage
Examples…
Examples…
Additional features
Examples…
New uses and
aiming at
different market
segments
Product
modification
New market segments
Starter Activity:
Product Life Cycle Activity
Draw a basic product life cycle for each of the following
types of products…
a) flop product
b) a product with seasonal sales
c) a product that has used multiple extensions
d) a product that has had a long life with high sales
e) a fad product that has had a short life