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The maturity stage is the very help full to the company because the maturity stage is the most profitable. While sales continue to increase into this stage. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices.
During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Those strategies that use to prolong and extend the maturity stage of your brand:-
• Evaluating the performance
• Extending the target market
• Improving the communion
• Research finding the customer
• Extending your point of the difference
• Marketing mix decisions:
5. Sales promotion
Maturity stage of product life cycle is the most important stage as costs are very low as you are well established in the market and there is no more need for intensive advertising, sales volume peaks, and it is the most profitable stage in product life cycle. Prices tend to fall due to abundance of competing products. It is a defensive stage. During maturity stage primary objective of the company is to maintain market share, retain customer base and extend the stage as long as possible. Various strategies are adopted by brand managers to gain the objective. Product differentiation (innovations and modifications are made as per changing trends to remain market fit and some extra features are added to gain competitive edge) , brand extension (stretching brand into new product fields e.g. “Mitsubishi” includes shipyards, nuclear plants, cars, hi-fidelity systems etc) and line extension (getting into different versions of the same base product in the same market e.g. “Coca Cola” with different offering in size like jumbo pack, family pack, tin pack, and regular pack etc.) sales promotion like cash discounts (for prompt payment), quantity discounts (to gain economies of scale on bulk purchases), trade discounts (to distribution channel members for performing some function like shelf space and warehousing), seasonal discounts (reduction in prices in a slack period), promotional allowances (given to buyer for performing some promotional activity), target market extension, vertical integration strategy that include forward integration ( gaining ownership or increased control over distributors or retailers by setting up company’s own distribution channels etc) and backward integration (seeking ownership or increased control of a firm’s suppliers.) This strategy can be especially important when a firm’s suppliers are unreliable, too costly or unable to meet the firm’s needs. Horizontal Integration (strategy of getting ownership or maximum control over a firm’s competitors by mergers, acquisitions, and takeovers).This strategy is widely used among competitors for increased economy of scales, enhanced transfer of resources and competencies and to minimize the risk of new entry in the market or competitors like “WALLS” took over “POLKA” and “YUMMY” ice cream in Pakistan.