Business Studies Collins Revision Guide. - StudyGuide.PK

●●●PRODUCT LIFE CYCLE (2)Not all products however will follow the exact path described onpage 66. Some products may prove very unsuccessful anddisappear from the market after their launch.A business may decide to try to prevent the decline in sales of theirproducts and introduce extension strategies to boost sales andappeal to new customers. These may include bringing out variants tothe product such as a different flavour or changing the packaging.The diagram below shows what would happen to the product lifecycle if extension strategies were successful.Extension strategiesIVIIISales increaseSalesIIITime●●Product development does not only happen before the launch ofthe product onto the market but also takes place when the productis approaching decline.By using extension strategies, a business can help to maintain itsmarket share without having to introduce a completely new productwith high development costs.67