SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Marketing Models Analysis
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:
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
Limited distribution levels, but high stockholding for the
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.
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.
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.
Under 99 calorie range (Dairy milk)
Dairy Milk, Twirl, Flake
The table shows that most of Cadburys products are in the maturity
stage. This is beneficial to Cadbury because their sales for each
product will have peaked, resulting in high profits. However, at this
stage, there are many competitors with similar products and Cadbury
must be careful the products don’t become saturated and then, like the
fuse bar, be declined. My product will be in the introduction stage of
the product life cycle. I will expect sales to be slow because there
will be limited knowledge of the product, although Cadbury do have
high customer loyalty. The product will hopefully move into the growth
stage where the...