SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Marketing Models Analysis

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SWOT, PEST, Product Lifecycle, Boston Matrix and the Ansoff Matrix: Marketing Models Analysis

Marketing strategies/models

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 ...

... middle of paper ...

... to get new people to try the product and

existing customers to buy more. The company should therefore use

market expansion. In the decline stage, the company should try to

re-launch the product, which would be using product or market

expansion. Market penetration could be used if a successful product

was being re-launched to increase the company’s market share, but this

would not work if the product were a dog.

The marketing models can be influenced other factors and research.

Cadbury’s competitors may affect the company’s use of the Ansoff

Matrix. The model is used to analyse the strategic direction of a

product, and if a product was placed in the market expansion, which

has medium risk strategy, and competitors also released a similar

product in this section, there will be a higher risk strategy, which

will affect the product’s performance and position in both the Boston

matrix and the product life cycle.

My questionnaire told me there was a gap in the market for my product,

and my SWOT analysis reinforced this. This then tells me that my

product should do well as a question mark, in the introduction stage

of the product life cycle and as product expansion.

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