Re generating a mature market

1408

 Introduction Conventional wisdom tells us that most products have a limited life-cycle. Initially the product may flourish and grow, eventually the market will mature and finally the product will move towards decline. At each stage in the product life-cycle there is a close relationship between sales and profits so that as organisations or brands go into decline, their profitability decreases. When markets mature there is less scope for firms operating in these markets to extend the success of their existing brands. In a mature market there are likely to be a number of existing products each commanding an established share of the market. There may be little point in new firms entering the market. Competitive jockeying such a product differentiation in the form of new flavours, colours, sizes, etc. will sift out the weaker brands. However, this case study demonstrates that there is life after what (at first) appears to be maturity. This case highlights the way in which SmithKline Beecham relaunched their Dr.Best toothbrush to radically alter perceptions and buying patterns in the German toothbrush market. The German success was then exported to many other countries thereby transforming the world toothbrush market. The importance of creating consumer benefits When...

This content is available to members only.
Loginor Subscribe Now