SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Mar

SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Marketing Models Analysis Marketing strategies/models In this objective I will be analysing the different marketing models and evaluating their reliability. The marketing models I will evaluate will be SWOT and PEST analysis, the product life cycle, the Boston Matrix and the Ansoff Matrix. SWOT and PEST analysis In the previous objective, I analysed SWOT and PEST of Cadbury. These enabled me to gain insight into the external and internal influences that may arise which may either be beneficial or cause problems for the launch of my product. Product life cycle The product life cycle shows the sales of a product over time. To be able to market a product, Cadbury must be aware of the product life cycle of its products. The cycle can be demonstrated as below: Introduction Following planning and development, the product is introduced onto the market. This stage includes characteristics such as: Low initial sales, due to limited knowledge and no consumer loyalty Heavy promotion to build brand image and consumer confidence Losses (low profits at best) due to heavy development and promotion costs Limited distribution levels, but high stockholding for the manufacturer Growth At this stage, consumer knowledge and loyalty has grown, and the company increases sales and begins to make profits. There may be a growing number of competitors who may introduce similar products or adapt their price and promotion policies. Maturity The maturity phase is where the profits and sales reach their peak. Profits are being maximised, but the firm has to fight to defend its market position. Sales are maintained by promotion, customer loyalty and product differentiation through alternations such as new packaging. At the end of this stage, the market becomes saturated. Decline This stage is where total sales fall for the company. To make up for this, the company may reduce prices, cutting into its profit margin. This is the end of the product and its life cycle. The table below shows examples of where some of Cadbury’s products lie in the product life cycle. Stage Example Introduction Snaps Growth Under 99 calorie range (Dairy milk) Maturity Dairy Milk, Twirl, Flake Decline Fuse The table shows that most of Cadburys products ... ... to get new people to try the product and existing customers to buy more. The company should therefore use market expansion. In the decline stage, the company should try to re-launch the product, which would be using product or market expansion. Market penetration could be used if a successful product was being re-launched to increase the company’s market share, but this would not work if the product were a dog. The marketing models can be influenced other factors and research. Cadbury’s competitors may affect the company’s use of the Ansoff Matrix. The model is used to analyse the strategic direction of a product, and if a product was placed in the market expansion, which has medium risk strategy, and competitors also released a similar product in this section, there will be a higher risk strategy, which will affect the product’s performance and position in both the Boston matrix and the product life cycle. My questionnaire told me there was a gap in the market for my product, and my SWOT analysis reinforced this. This then tells me that my product should do well as a question mark, in the introduction stage of the product life cycle and as product expansion. SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Mar SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Marketing Models Analysis Marketing strategies/models In this objective I will be analysing the different marketing models and evaluating their reliability. The marketing models I will evaluate will be SWOT and PEST analysis, the product life cycle, the Boston Matrix and the Ansoff Matrix. SWOT and PEST analysis In the previous objective, I analysed SWOT and PEST of Cadbury. These enabled me to gain insight into the external and internal influences that may arise which may either be beneficial or cause problems for the launch of my product. Product life cycle The product life cycle shows the sales of a product over time. To be able to market a product, Cadbury must be aware of the product life cycle of its products. The cycle can be demonstrated as below: Introduction Following planning and development, the product is introduced onto the market. This stage includes characteristics such as: Low initial sales, due to limited knowledge and no consumer loyalty Heavy promotion to build brand image and consumer confidence Losses (low profits at best) due to heavy development and promotion costs Limited distribution levels, but high stockholding for the manufacturer Growth At this stage, consumer knowledge and loyalty has grown, and the company increases sales and begins to make profits. There may be a growing number of competitors who may introduce similar products or adapt their price and promotion policies. Maturity The maturity phase is where the profits and sales reach their peak. Profits are being maximised, but the firm has to fight to defend its market position. Sales are maintained by promotion, customer loyalty and product differentiation through alternations such as new packaging. At the end of this stage, the market becomes saturated. Decline This stage is where total sales fall for the company. To make up for this, the company may reduce prices, cutting into its profit margin. This is the end of the product and its life cycle. The table below shows examples of where some of Cadbury’s products lie in the product life cycle. Stage Example Introduction Snaps Growth Under 99 calorie range (Dairy milk) Maturity Dairy Milk, Twirl, Flake Decline Fuse The table shows that most of Cadburys products ... ... to get new people to try the product and existing customers to buy more. The company should therefore use market expansion. In the decline stage, the company should try to re-launch the product, which would be using product or market expansion. Market penetration could be used if a successful product was being re-launched to increase the company’s market share, but this would not work if the product were a dog. The marketing models can be influenced other factors and research. Cadbury’s competitors may affect the company’s use of the Ansoff Matrix. The model is used to analyse the strategic direction of a product, and if a product was placed in the market expansion, which has medium risk strategy, and competitors also released a similar product in this section, there will be a higher risk strategy, which will affect the product’s performance and position in both the Boston matrix and the product life cycle. My questionnaire told me there was a gap in the market for my product, and my SWOT analysis reinforced this. This then tells me that my product should do well as a question mark, in the introduction stage of the product life cycle and as product expansion.