Monday 19 December 2011

Product extension stratergies

  • Increasing the use of the product- 1980's Milk Marketing Board stressed the benefits of drinking an extra pint of milk each day. Shampoo products always advise you to rinse and wash again thereby doubling the usage rate.
  • Encouraging the use of the product on more occasions - Head & Shoulders was seen by consumers as a product to use when you had dandruff, the company tried to change this perception to get people to us it all year round to prevent dandruff.
  • Reducing the price- as products approach the maturity stage, firms often cut the price to maintain sales.
  • Adapting the product- supermarket use this technique a lot, 'new, improved'.
  • Introducing promotional offers- another technique often used by firms to keep sales high is to have competitions to boost their sales.
  • Changing the image of the product- For example Vodka, which have had their image changed to appeal to a younger audience. New versions have been launched, such as vodka and mixers, and the branding and packaging has been changed.

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