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Extension strategy

A method used to extend the life of a product. Extension strategies are usually implemented during the maturity or early decline stages of the life cycle. They may include the following: Encouraging existing customers to continue to buy the product over competitors by changing the design, image, appearance, packaging or ingredients slightly EG Kellogg’s have introduced a new range of Cornflakes called Multi-Grain Cornflakes; Increasing the frequency of the product’s use – for example – by emphasising the health benefits of a product through promotion eg Kellogg’s advertisements for Special K Bliss stated ÒÉa delicious new taste experience you can feel free to enjoyÉÓ with further information encouraging people to eat it at any time of the day… And because it’s from Kellogg’s Special K, you can be sure it’s low fat, so it’s one indulgence you can really allow yourself , whatever time of day.Ó; Attracting new users / targeting new markets for existing products eg Kellogg’s has introduced mini cereal bowls that contain one portion of cereal, UHT milk, and a spoon; Developing alternative / new uses eg Kellogg’s provide recipes for other food products on their cereal packets to encourage consumers to make new uses of their breakfast cereal – for example – rice krispie and cornflake cakes, which involves mixing together rice krispies (or cornflakes) with melted milk (or white) chocolate and golden syrup (or honey); Introducing additional models / wider ranges of products eg Kellogg’s new range of Special K products called ‘Special K Bliss’; Extending the product into other formats eg Kellogg’s introduced a ‘Rice Krispies Square Chewy Marshmallow bar’ from their traditional Rice Krispies. NB Spending on advertising and sales promotions eg special offers alone should not really be regarded as extension strategies. These can be just as effective in boosting sales at any stage of a product’s life.

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