Marketing Strategies for Mature Brands
| Published date | 01 January 1993 |
| DOI | https://doi.org/10.1108/10610429310027419 |
| Date | 01 January 1993 |
| Pages | 5-19 |
| Author | Joel R. Evans,Gregg Lombardo |
| Subject Matter | Marketing |
VOLUME 2 NUMBER 1
1993
Marketing Strategies
for
Mature Brands
Joel
R.
Evans
and
Gregg Lombardo
OVERVIEW
Over
the
last decade more
and
more
firms (particularly
in the
United States
and Western Europe) have expanded their
marketing efforts with regard
to
mature
brands. Furthermore, this trend promises
to continue
in the
future. Here
are
some
reasons
why:
• Many industries
are in
maturity,
and
the best-known brands
are
well
positioned
for the
long
run.
Campbell
soup,
Coca-Cola,
Del
Monte canned
fruit, Gillette razors, Nabisco crackers,
and Wrigley's
gum
have
led the
market
in
their industries
for
decades
— mostly
on the
strength
of
their
established brands (Landler, 1991).
• Marketing tasks
are
more efficient
when brand awareness
and
preference
have already been established
in
consumers' minds.
• New-product development
and
marketing costs
are
higher than ever,
so
the
cash flow from mature
products
is
critical.
• New-product failure rates remain
exceedingly high.
On the
other hand,
there
is
relatively
low
risk that mature
brands' sales will dramatically fall
off
Journal
of
Product
&
Brand Management, Vol.
2
No.
1,
1993, pp. 5-19,
© MCB University Press,
1061-0421.
as long
as
they
are
properly marketed.
In general, customers have less
perceived risk when they consider
the
continued purchase
of an
existing
brand
or a
modified
or new
product
with
an
established name.
• Channel relations
are
maximized
when dealers feel comfortable with
the brands which they
are
asked
to
stock.
In
addition,
the
high number
of mature brands
in
some industries
makes
it
more difficult
for
newer
competitors
to
obtain scarce shelf
space.
•
By
maintaining
the
popularity
of
mature brands, firms
can
enter
new
product categories through
a
brand-
extension strategy. They
can
"leverage" these brands.
• Firms have become more interested
in
protecting market share.
•
The
aging marketplace
is
less
apt to
try newer brands.
Yet, despite firms' increased attention
to
mature brands, little
has
been written
about planning systematic marketing
strategies
for
them. While some textbooks
provide
a
brief overview
on
this topic,
the
seminal work
in the
area
is
still Levitt's
"Exploit
the
Product Life Cycle" (1965).
This present article focusses
on the
marketing
of
mature brands
by:
5
To continue reading
Request your trial