Pepsi's Product Life Cycle / Donna Elviera Arni ... [et al.]

This is a case study on Pepsi's product life cycle. This is a valuable tool for marketers to manage the product as it progresses through its life cycle. Managers are encouraged to anticipate industry changes and have strategies in place for each stage it promotes a proactive planning approach. There are four stages of product life cycle. Firstly is introduction stage where sales are made to innovators, consumers who enjoy trying new products, but these are insufficient to recuperate development costs. Secondly is growth stage where sales being to increase rapidly as the product gains popularity among the early majority. It is at this stage that profits are first generated. Thirdly is maturity stage where this is the longest stage and generates the majority of a product's sales and profits from the late majority. To 'milk' the product for as much profit as possible, extension strategies are often implemented to pro-long the maturity stage. Lastly is decline stage where eventually all products stop selling, such as VHS tapes. As expected, sales begin to decline until the product is no longer profitable. At each stage, marketers should adapt their marketing strategies to the external changes in the market place. Take a look at how PepsiCo have used the product life cycle to successful grow Pepsi into one of the most consumed drinks in the world.