Case study “Extending the product life cycle”
Answers by Lyazzat Bayetova
1 . Using current products familiar to you, draw and label a product life cycle diagram, showing which stage each product is at.
2 Suggest appropriate aims and objectives for a small, medium and large business.
Business | Aims | Objectives |
Small | Attract more customers | Reach 10% of return on investment in first year |
Medium | Increase profit | Reach 5 million sales by the end of the year |
Large | Expand internationally | Increase market share ...view middle of the document...
Market development is when a company enters new market with same product. For example, expanding geographically, demographically or introduce new use of the product.
Product orientated routes includes product development and product diversification. Product development is a strategy that suggests firms to develop new or modified products to the same market. Product diversification occurs when a company offers new products to new market.
In conclusion, the difference between these orientated routes is change in market or in product. Market orientated routes focuses on sales of same product in either existing or new market. Product orientated routes focuses on sales of new product in either existing or new market.
4 Consider the decision taken by Kellogg to opt for product development. Suggest a way in which it could have diversified instead. Justify your answer
Kellogg as a food company could acquire other type of food business. As the company is known for health products it could produce baby food, such as infant formula, porridge, puree. Another example of diversifying their product could be entering technology market by producing health gadgets with measuring heartbeat and pressure functions. Kelogg also may produce sport fitness clothes.