Extension strategy is about how you extend the life of a product. You adopt it during the maturity phase to avoid decline.
A product life cycle consists of five stages:
In the mature stage, sales have peaked, but the percentage of growth has been slower. That usually goes into a decline phase.
Instead of going into a decline phase, you might try to extend the life of the cycle. Some options that you can use to extend the product life cycle are:
- Discounted prices to attract new customers
- New markets for current products, for example, sell them abroad
- Introducing a new version, for instance, version 4.0 and later version 5.0.
- Changing usage, for example, in the past, cereal products are for breakfast. Still, you can promote it as eating cereal for different times of the day.