CASE Kelloggs

CASE KELLOGGS Juan David Bohórquez Mónica Arcila UNISABANETA

EXTENDING THE PRODUCT LIFE CYCLE

CASE Kelloggs : Extending the product life cycle

1. USING CURRENT PRODUCTS FAMILIAR TO YOU, DRAW AND LABEL A PRODUCT LIFE CYCLE DIAGRAM,SHOWING WHICH STAGE EACH PRODUCT IS AT.

-Launch : Palmito Orgánico Entero. -Grown: Papas A La Francesa Congeladas -Maturity: Leche Deslactosada. -Saturation: Cremas y sopas instantáneas. -Decline: caldo de gallina en cubos. - A successful extensión strategy could incrase sales with: caldo de gallina en desmenuzado en sobre. 2. SUGGEST APPROPRIATE AIMS AND OBJECTIVES FOR A SMALL, MEDIUM AND LARGE BUSINESS. The aims and objetives for a small, medium and large business can be compared with the product lige cycle, small businesses need objetives to improve the positioning of the company to assist the growth of these, research at this stage is very important. Launch and grown are the more important aims. In the medium business the most important thing is to grow and achieve stability (maturity), supported by a good and steady investment is very important positioning in the market. And for the large bussines are companies that have many competitors, the most important thing is to have strategies to prevent the decline of products and help extend the life of these. 3. EXPLAIN THE DIFFERENCE BETWEEN MARKET ORIENTATED ROUTES AND PRODUCT ORIENTATED ROUTES IN ANSOFF’S MATRIX.

According to Ansoff's matrix in the product orientated, its include product development and product diversification. Product development is a strategy for company growth by offering modified or new products to current market segments. The product diversification is a strategy to reach new markets through the increased supply of the products presented to customers. In the market oriented its included market penetration and the market development. Market penetration is strategy for company growth by increasing sales of current market segment without changing the product. Market Development is a strategy for company growth by identifies and developing new market segment for current company product. 4. CONSIDER THE DECISION TAKEN BY KELLOGG TO OPT FOR PRODUCT DEVELOPMENT. SUGGEST A WAY IN WHICH IT COULD HAVE DIVERSIFIED INSTEAD. JUSTIFY YOUR ANSWER. we believe that the development of products where is the best strategy that could be used, but suggest an alternate path that could have been the penetration of markets because it is a growth strategy with reduced risk due to high product knowledge market in which the company works. The market penetration strategy can be combined simultaneously with other more aggressive growth strategies and therefore riskier, such as internationalization and market development.