Product Life-cycle Extension Stratedgies

In a product life-cycle, the product goes through three main stages (other than development and introduction) which are growth, maturity and decline. However not all companies let their products enter into the decline stage. They employ extension strategies, which extend the life of the product beyond the decline stage while it prolongs the maturity stage. Companies employ the following extension strategies:

1) By Changing the shape or the design if the product, e.g Coke and Pepsi routinely change the shape of their bottles. Toyota changes the designs of its Corolloa models.

2) By finding a new market for the product, e.g sports shoes used to be used for sports only but now are a fashion accessory.

3) By changing the name of the product for wider appeal

4) Price reductions and other forms of promotion.

Here is how an extension strategy would look like in the product life-cycle graph