PRODUCT LIFE CYCLE

• THIS IS A USEFUL TOOL FOR ADVERTISERS TO TRACK THE PROGRESS OF A PRODUCT AS IT MOVES
THROUGH ITS LIFE CYCLE.
• THE TIME IT TAKES FOR A PRODUCT TO GO FROM BEING BROUGHT TO THE MARKET TO BEING REMOVED
FROM THE SHELVES.
1) PRE-LAUNCH- 1890’S

• CALEB BRADHAM, A PHARMACIST, CREATED 'BRADS DRINK,' A DIGESTIVE AID FORMULA IN 1898. BRAD
RENAMES THE DRINK 'PEPSI-COLA' AFTER RECEIVING A LOT OF POSITIVE FEEDBACK FROM CUSTOMERS.
2) INTRODUCTION- 1902
• BRAD BEGAN SELLING PEPSI-COLA AND ACHIEVED SALES OF 7,968 GALLONS OF SYRUP IN THE FIRST
YEAR.
• OBJECTIVES
• Brad set out to raise initial product awareness and trial, and he far surpassed his goals.
• PRODUCT
• Pepsi-Cola was originally sold even without bottles, as it was just a basic product. Instead, soda fountains in Brad's pharmacies were used to sell the product.
• PRICE
• A straightforward cost-plus pricing strategy was used at first. Pepsi-Cola most likely began with a skimming strategy to quickly recoup startup costs.
• PLACE
• Initially, a highly selective distribution strategy is recommended, as evidenced by Pepsi-launch Cola's in Brad's pharmacies.
• ADVERTISING
• To generate awareness, a celebrity endorsement with race-car driver Barney Oldfield (above) was utilised.
• SALES PROMOTION
• Pepsi-Cola was not launched with any promotions
3) GROWTH- 1930-1970’S

• PEPSI-SALES COLA'S SOARED DURING THE GREAT DEPRESSION AFTER IT DECLARED BANKRUPTCY AND
WAS PURCHASED BY LOFT INC. CONSUMERS WERE DRAWN IN BY THE COMPETITIVE POSITIONING'S
VALUE FOR MONEY: 5 CENTS BOUGHT 12 OUNCES OF PEPSI-COLA, BUT ONLY 6 OUNCES OF COCA-COLA.
• OBJECTIVES
• GAINING MARKET SHARE IS CRUCIAL DURING GROWTH.
• PRODUCT
• AS THE MARKET BECOMES MORE COMPETITIVE, IT IS CRITICAL TO KEEP IMPROVING THE PRODUCT.
• PRICE
• THE LOW PRICE PENETRATION STRATEGY WAS ONE OF THE MAIN REASONS FOR THE BRAND'S ENORMOUS
GROWTH DURING THIS TIME PERIOD, AS IT SUPPORTED THE GOAL OF GAINING MARKET SHARE.

• PLACE
• TO SUPPORT RAPID SALES GROWTH, A LARGE DISTRIBUTION NETWORK IS REQUIRED.
• ADVERTISING
• IT IS CRITICAL TO CAPTURE THE EARLY MAJORITY STAGE, WHICH NECESSITATES ADVERTISING THAT IS INTENDED
TO REACH A LARGE AUDIENCE.

• SALES PROMOTION
• NO SALES PROMOTION WAS USED DUE TO THE DRINK'S OVERWHELMING SUCCESS.
4) MATURITY- 1980’S- PRESENT DAY

• PEPSI HAS BEEN IN THE MATURITY STAGE OF THE PRODUCT LIFE CYCLE SINCE THE 1980S, CONTRIBUTING
OVER $20 BILLION IN ANNUAL REVENUE TO THE PARENT COMPANY.
• OBJECTIVES
• AT THIS STAGE, PRODUCTS ARE MOST LUCRATIVE, AND THE GOAL IS TO MAXIMIZE PROFITS FROM THE BRAND
• PRODUCT
• NOW THAT THE PRODUCT HAS GAINED TRACTION, ENTIRE RANGES CAN BE PRESENTED AS EXTENSION STRATEGIES TO
KEEP THE MOST LUCRATIVE STAGE ALIVE.
• PRICE
• IT'S CLEAR THAT PEPSICO AND COCA-COLA DON'T WANT TO GET INTO PRICE WARS, WHICH IS A HIGH RISK AT THIS
POINT IN THE GAME.
• PLACE
• THE PRODUCT NOW HAS A NATIONWIDE DISTRIBUTION NETWORK, ALLOWING IT TO REACH EMERGING MARKETS.
• ADVERTISING
• PRIMARILY FOCUSED ON DIFFERENTIATING THE BRAND.
• SALES PROMOTION
• OFTEN HAS BOTH VALUE RISING AND VALUE ADDING OFFERS TO STAY CONSISTENT WITH THE BRAND'S VALUE-FOR-
MONEY POSITIONING.
5) DECLINE (SOMETIME IN THE FUTURE)

• PEPSI SALES ARE SHOWING NO SIGNS OF SLOWING DOWN IN THE NEAR FUTURE, DESPITE RISING
CONSUMER INTEREST IN HEALTHIER LIFESTYLES. REGARDLESS, IT IS RECOMMENDED THAT PEPSICO HAVE
THE FOLLOWING STRATEGIES READY TO IMPLEMENT IN THE EVENT THAT THE PRODUCT SUFFERS FROM A
DECLINE.