Product life cycle extension strategy
Effective product life cycle extension strategies increase the profitable period of a product. Most products pass through a cycle that includes development, introduction, growth, maturity and decline.
Once you have expended the time and energy to develop a product, any extension of product life is weighted more toward profit than costs. Successful product life cycle extension strategies generate additional profit from a mature or declining product through small expenditures, changes to a product or modifications in marketing focus.
Re-brand an existing product with a new name and purpose. Change a product that has diminishing returns under an existing brand name to a new name that has a different target market. For example, if you sell shampoo that is known for high style and fashion, you need to consistently offer new and improved versions of your product to maintain customer interest and product market share. Re-brand an older formula under a mid-level or budget brand name to extend the life of each shampoo formula. The mid-level or budget brand will get a boost from a new product offer, and your company will gain additional product life and profits.
Modify features to adapt to market changes or changes in customer preferences to extend the life cycle of your product. For example, if you offer a newly out-of-style pink dress that has diminishing sales, change the colour to black or make simple decorative changes to update the dress to a more current fashion style or to appeal to a more conservative market.
Change product packaging to target a new market or give your product a fresh look. Consider changing the size, materials or messaging on the package. For example, if you offer coloured pencils that were packaged in a plastic container, change to packaging that is made from recycled materials. Proclaim your new "environmentally friendly" product focus on your package. Your product will now target environmentally conscious consumers.
A classic way to extend the life of a fading product is to reduce its price or offer different pricing options. For example, if you are about to release a new version of an electronic device, extend the product life of the old version by offering it at a heavily reduced price. Not only will you gain customers that can afford your newest offering, you sustain market share for the entire family of products you offer.