WORKSHEET: Edexcel AVCE Business Yr 12: Product Life Cycle

Link to case study here

Kellogg’s

Building a brand in order to sustain its life cycle

1. Fill in the blanks using the Kellogg’s Case Study and notes!!!

The …………………… …………………… …………………… shows the stages that a

product passes through from its original launch to its final decline. In total there are

…………………… stages in the PLC. The first stage …………………… is when sales

are zero and when investment costs are high. The …………………… stage often leads to

heavy expenses by firms such as Kellogg’s, profits do not exist yet.

The …………………… stage often occurs through rapid market acceptance with

increasing profits for companies such as Kellogg’s. The …………………… stage often

leads to a slow down in sales growth with profits levelling off. The product ‘All Bran’ a

market leader went through this stage, Kellogg’s had to take the strategic decision as to

whether or how to …………………… it.

When sales fall – off and profits drop the product is said to be in ……………………

Decline, Product Life Cycle, Maturity, Introduction, Growth, Promotion, Five

2. Fill in the Product Life Cycle ensuring that it is labelled correctly. Place the following into the correct place in the Product Life Cycle: Tab Clear Cadbury Fuse Concorde KIT KAT The Internet Phone Kellogg’s All Bran Special K with Fruit

Product Life Cycle

Sales

3. You have been given the task by your marketing manager to write a page document explaining five possible extension strategies to promote the shelf life of ‘All Bran’ (10 marks)

4. Mix and Match the following words to the boxes. Some of these Key Words are found in the Kellogg’s Case Study.

STRENGTHS Limited Market

Competition

Lack of Promotion

WEAKNESSES Market Share

Eat more Healthy

Strong Reputation

OPPORTUNITIES Internet

Tastier cereals

Competitor Brands

THREATS Popular Brand