Examine the circumstances in which a product (such as Coca-Cola) may avoid the decline stage of the product life cycle
i think it has got something to do with the different types if extension strategies they could use, but im unsure.
please could someone help me!
thank you!
Check this site that I found by Googling product life cycle extension strategy
http://en.wikipedia.org/wiki/Extending_the_Product_Life_Cycle
ah! so i was right!
thank you for the link!
You're welcome.
Certainly! To examine the circumstances in which a product like Coca-Cola may avoid the decline stage of the product life cycle, it's important to consider different extension strategies that can be used. These strategies can help the product maintain relevance and continue to generate sales.
Here are a few extension strategies that Coca-Cola (or any brand) could employ to avoid the decline stage:
1. Product innovation: Regularly introducing new and improved versions of the product can attract new customers and retain existing ones. Coca-Cola has done this by introducing various flavors and variations such as Diet Coke, Coke Zero, and Cherry Coke.
2. Market expansion: Exploring new markets or increasing penetration in existing markets can help sustain sales. Coca-Cola has expanded its reach to different countries, targeting global markets and ensuring a wider consumer base.
3. Brand diversification: Extending the brand into new product categories can allow Coca-Cola to leverage its brand name and reputation. For example, Coca-Cola owns and markets other beverage brands like Sprite, Fanta, and Minute Maid.
4. Promotional campaigns: Implementing effective marketing campaigns can create buzz and generate consumer interest. Coca-Cola is well-known for its advertising and promotional efforts, including memorable commercials and sponsorships of major events like the Olympics and FIFA World Cup.
5. Strategic partnerships and collaborations: Collaborating with other brands or companies can help introduce joint products or tap into new distribution channels. Coca-Cola has partnered with companies like McDonald's, leading to exclusive promotions like the "Coke and Fries" combo.
By employing these extension strategies, Coca-Cola has managed to avoid the decline stage of the product life cycle and maintain its position as one of the world's most recognized and consumed beverage brands.