PRODUCT LIFE
PRICE Intensive (market penetration),
CYCLUS/ BOSTON
Market penetration or price skimming
CONSULTANCY MATRIX
Introduction stage Depends on the position that the company
?
wants to achieve in the market, on how it
wants to be perceived by its target. If it
wants to be perceived as:
• Luxurious: higher price than the
competitors
We want early adaptors to buy
our product. Invest has to be • Normal: similar to the competitors
recovered as soon as posible • Lowcost: lower than the competitors
The company can take decisions over the
Growth stage price not taking the competitor’s price as a
reference.
The price can be decrease, if we decided to
apply the market penetration or increase it
if we decided to apply the skimming
strategy (step by step), as the product has
been accepted in the market.
The price is not changing anymore, the
Maturity Stage
product and the brand are already in the
wanted position inside the market.
Price is stable but comparing to
competitor’s is high. The company cannot
changing the price drastically, but they can
change the amount (the content).
The company might decide to decrease the
Decline/Rebirth price in order to sale as many items as
posible before taking the product out of
Stage the market, if the production level is
drastically stopped
Never extremely low if decide to decrease
the level of production, we lost the
benefits of economy os scale.
PRODUCT
The company must be sure that the
product they are about to launch can
indeed fulfill a need that the target has.
Production rate is low, small adaptations
can be done to fit target’s taste
Differentiation is the master Key to
success, eye-catching packaging, easy-
to-remember name, catching slogan
Increasing production levels
Increasing quality and variation is now
the strategy to follow in order to gain
the trust of the main target.
Production is in the highest level and
stable
Improve the quality, characteristics and
benefits of the product but never
changing the product so it could be
considered as something new, just
variations.
Level of production decreases or stops
drastically
Try find new use for the product, find
another need can be fulfilled by the
same product in order to have a rebirth,
which means that we are start from
beginning again
PLACE PROMOTION
AIDA (Awareness, Interest,
extensive (skimming) and
selective
Desire, Action/Buying)
All the communication efforts are
Selective distribution. Retailers
might be not sure about selling our
aimed at getting the product
known by the target (awareness),
product.
samples can be given at the
selling points or public places
Keeping in mind that the main
where the target is (train or bus
challenge of the company is to make
stations, universities, schools,
the target try the new product or
squares…)
service, is important to chose those
stores in which the target usually
Promotion Budget: High, as we
buys.
start from the Botton line.
Intensive distribution
Awareness should be over (our
target should know our product),
Enlarge the distribution channels, be
we are now working in Desire.
sure that our target will be able to
Budget is decreasing slowly
find our product or service
anywhere.
In this stage the objective is to
cultivate the loyalty of the target,
Now costumer might ask for the
to build a community, in order to
product in the retail, so retailers are
guarantee that our target is going
willing have the available in his
to chose us (product/service).
store.
Huge campaigns are not needed
anymore.
We continue with the intensive
Now the challenge is to build a
distribution.
strong, stable and lasting
relationship with the target, as
Internationalization, make the
the market is full of competitors
product global. The company needs
that offer similar product/service.
new distribution channel in order to
reach new targets, launching the
The company might chose sale
product in other countries is good
promotions: 2x1, 3x2, second
way to find new markets
item with 50% of discount,
vouchers, membership card
(when it come to services)…
Exclusive distribution: reduce the
No promotion
distribution channels, retailers don’t
want to sale the product anymore.
Exception: if the company has a
Limited market share
big stock of the product, in this
case they can promote it in order
The company will start withdrawing
to rid of it.
the product from the market.
Look for companies that follow these competitive strategies:

Operational excellence Innovation Costumer intimacy and

the execution of its operations in an
excellent way. Focus on the process,
STARTEGY
companies that follow this strategy
offer standardize product or service.
Linked to robots
plan to grow market share or profits
through product and service
innovation
customization
seeks to understand specific client
needs in order to deliver the 'best
total solution

Inditex's business model is a flexible

An italiano fashion bag brand founded
and integrated model, customer-
in 2012, its competitive strategy
oriented and with a clear multi-
Apple is known worldwide for its relays on selling customized bags.
EXAMPLE channel and multi-chain strategy.
continuous innovations, not only The costumer can choses the bag
when it comes to launch technological model and then chose color, handle,
The business model covers all phases
gadgets (they designed, produce and inner bag color and trim.
of the value chain: design,
sell the first smartphone in the
manufacturing and procurement,
market) but to offer services (icloud,
distribution, logistics and store
App Store, apple music…) and
innovative designs.