Page 3: The need for an injection of new life
All markets change over time. Fashions alter, tastes change, technologies develop, people adjust their lifestyles, preferences and expectations. Taken together, these factors cause products to experience a product life-cycle that follows a pattern of introduction, growth, maturity, and decline.
By charting the various phases in a product's life, an organisation's marketing department can decide if, when and how best to inject new life into the product and so extend its period of usefulness and value to the company.
The chart below illustrates the life-cycle of a product and shows how a timely boost might extend its useful life.
In the example below, the effect of an injection of new, creative ideas has the effect of extending the life of the product. Success is not guaranteed. Like all business decisions, there is a risk involved. Not all attempts to breathe new life into a product pay off.
In 1999 Kellogg's undertook a huge process of strategic market research. The company hoped that the research would provide valuable insights about the brand, its icon Tony the Tiger and the current position of Frosties within its product life-cycle. The research focused on children under the age of 12 years, who are the main target market for Frosties. The data collected was both qualitative and quantitative.