During the maturity stage of product life cycle, an organization's efforts are directed at avoiding fast decline in sales. The organization may prolong the maturity period by adopting a modification strategy:
1. Market Modification
The market modification strategy searches new buyers for the product. A firm can attract new buyers in three ways:
i. Convert non-users into users
The firm may enlarge the size of its market by inviting non-users to use the product. This may be achieved by introducing new sales promotional tools or price cuts targeted at the non-users.
During maturity period, several organizations modify their product to satisfy the needs of the buyers. Product modification involves the following:
ii. Enter into new market segments
This involves search for new market segments that were neglected in the growth period because they were small in size, had lower growth rates, and provided small profit opportunities. Market expansion to some extent can be achieved by entering into these new segments.
iii. Win competitor's customers
A firm may launch a promotion campaign targeted at competitor's customers and tempt them to switch their brand in favor of firm's brand. This can help to get some more buyers for the product.
2. Product Modification
During maturity period, several organizations modify their product to satisfy the needs of the buyers. Product modification involves the following:
i. Flanking
Manufacturers often re-launch an existing product with flanking that involves adding something new to the product. For example, Horlicks has brought its original product with extra calcium and chocolate flavor.
ii. Product revitalization
Manufacturers often add an adjective on the brand name such as plus, super, deluxe, extra and new to suggest to buyers that something extra has been added on the product. Changing product features, designs, and packaging is a popular strategy during the maturity period.
3. Marketing Mix Modification
3. Marketing Mix Modification
The marketing firm may retain current sales volume by changing one or more components of the marketing mix.
i. Sales promotion
Marketers change the promotion mix by reducing persuasive advertising and focusing on sales promotional campaigns targeting both consumers and resellers. Often the firm changes sales promotion schemes every three months. All promotional efforts during this stage are push-sell their matured products.
ii. Reminder advertising
Marketers also change the advertising message during this stage of product life cycle. Most of the advertising themes used during the maturity stage are either to support the sales promotions or provide reminder communication.
iii. Temporary price reduction
Marketers also temporarily reduce the price of the product for one to three months to push sales.
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iv. Permanent price reduction
When other modifications do not work marketers start to cut down the price level permanently to attract the price-sensitive buyers.
v. Maintain higher volume channels
Marketers reduce the distribution intensity and shrink their networks in this stage of product life cycle. They try to maintain higher volume cost-effective channels, and withdraw from low-volume high cost channels. Firms often change their dealers frequently in this stage.
