stage was achieved by Kellogg’s by implementing new flavors to their current product as well as naming the product not as a ‘missed breakfast’ but as an ‘all day’ healthy snack (Kellogg’s Case Article). The third stage in the product life cycle is the maturity stage in which sales still have slight increase but gradually slow down into a stable level of sales. Kellogg’s performance in this stage was occurring due to many markets competing with Kellogg’s at this point. The third stage was their peak of profits but also affected their sales due to competitors cloning their products thus making them similar and “better” alternatives. The fourth and final stage of the product life cycle is the decline stage. The clear sign that a product is in the decline stage is when a long-run drop of sales manifest themselves (Kellogg’s Case Article). Sales drop in a significant way in the decline stage and there is less demand for the product. Increasing amounts of market share is lost and the products’ sales increasingly diminish (Sraders, A. ,2019). Kellogg’s decline stage was one of the hardest choices they faced in which they had to decide whether their product should ‘die’ and withdraw it from the market; or do something to extend the life of the product. Question 2
4 Kellogg’s Case Analysis For a company to consider what to do while the product is currently going through a stage of growth, they should most likely refer going back through the marketing mix and reconsider marketing strategies. I believe that during the growth stage of a product the company should mainly be more inclined on the promotional side of the marketing mix because the company wants to keep attracting new consumers while sales are increasing heavily. Companies should focus on brand preference during the growth stage since market share will be increasing as well (Lorette, K. ,2017). By building brand preference during the stage of growth, the company is letting their consumers know what benefits they have buying their product as opposed to buying from their competitors. ‘Place’ in the marketing mix would be the second most important factor during a product’s growth phase. As products are going through the growth stage, companies should expand to many locations in order to attain new and potential customers for their product. Place is mainly important because during the growth stage competitors are coming into the business therefore expanding the product increases the products’ purchase. In return, demand increases, and channels are opened up for customers to purchase the product (Gorchels, L.,2010). When focusing on the growth cycle of a product, all P’s of the marketing mix are considered but some are not influenced as much as opposed to others. The remaining two P’s of the marketing mix which is that of price and product are not necessarily altered as much during the growth stage. These two remaining factors are important and influence the growth cycle in their own set of ways. When considering “product” in the growth cycle of a product, companies
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- Winter '20