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Maturity Stage
Slowdown of sales growth Product entering a stage of relative maturity Lasts longer and poses big challenges Divided into 3 phases: 1. Growth maturity 2. Stable maturity 3. Decaying maturity
Growth Maturity:
Sales growth rate starts to decline No new distribution channels to fill New competitive force emerges (marketing insight)
Stable maturity:
Sales flatten on per capita income basis Potential customers have tried the product
Decaying Maturity:
Marketing insight
A new product or service dimension expands boundaries of an existing category: Yoplait Go-Gurt v/s Danones Dannon. A new product or set of products carves out a fresh niche in an existing category: Energy
bar by PowerBar
A new competitor devises a way to handle existing category into a super category:
Siebel CRM
A new competitor repositions existing products or services to create an original category: Ford Galaxy minivan in UK
A company exploits changing technologies to invent a new category: TiVo Inc. Home TVs
Electrolux AB
Bajaj Auto:
Abandon weaker products and concentrate on more profitable and new ones
Market modification
Volume= number of brand users* usage rate per user Increase no. of brand users: convert non
Product modification
Quality improvement
Feature improvement
Style improvement
Declining Stage
Declining sales Low cost per customer Declining profits Laggards Declining number
Problems faced
Identifying a weak product Exit barriers
Strategies
Phase out weak products Cut price Go selective: phase out unprofitable outlets Harvesting and Divesting
References