Linking promotional activity to the product life cycle

01_Introduction
number sold

Most large companies produce a variety of goods and services

designed to meet consumers’ needs and requirements. Consumers’
expectations and requirements change over time, so firms need to Maturity
develop new products. Market focused companies use market
research to identify these trends. They are continually developing
new products, some of which are completely new ideas, while others Growth Decline
are improvements on existing ones, also me-too products to find
other ways to offer differentiation within their product portfolio.
Introduction

A firm’s need to keep developing new products means that at any

one time a typical large company will have a portfolio of products, time
not all of which will be at the same stage in their product life cycle.
This Case Study shows how BIC® understands product life cycles
Some products will be new and may be struggling to make
and appreciates the importance of matching promotional
headway, others will be established and growing in importance, activities to the various stages in the life cycles of the products in
while others will have matured and be in decline. its portfolio.
02_Products for consumers
at affordable prices
BIC was founded in 1950 by Marcel Bich with the introduction of
the first high quality ballpoint pen at an affordable price. In 1975
BIC launched the first one-piece shaver and become a market
leader within that sector too.

In the early days, BIC concentrated on a core range of products

which mainly included: BIC Cristal® and Orange Ball Pen and the
Classic Shaver.

03_The Boston matrix

and BIC products
Multi-product businesses like BIC are aware of how products in
their entire portfolio contribute to the overall growth of the
business. Established profitable lines make a vital contribution that
enables a company to invest in the development and promotion of
new lines.

In the 1990s the company realised it needed to develop its product The Boston Group developed ‘The Boston box’ or matrix. This
range to meet changing consumer needs and to compete with new relates closely to product life cycles and identifies four classes of
competitors entering the writing and shaver categories. products in an organisation’s portfolio.

BIC has therefore set about re-shaping itself. It has looked to add Problem children are newly-launched products. This name is
value to its products (e.g. by moving from a single blade to a twin appropriate because many products fail to move beyond this phase.
blade, then to a triple blade razor) and to develop a range of new Such products are also referred to as ‘Question Marks’. In order to
products. BIC’s introduction of the Classic one-piece shaver, grow, they require large amounts of investment and promotional
rebranded as BIC 1, illustrates this process. The re-branding was support. Wise firms monitor each product’s progress and recognise
intended to enhance the brand’s simplicity whilst still maintaining whether or not ongoing support is justified.
the highly recognisable, orange packaging. BIC has further
enhanced this re-branding by launching BIC 2, which satisfies Stars are products that have successfully reached the growth stage
consumers looking for a functional twin blade at an affordable in the life cycle. Although they need ongoing promotional support,
price. Through the launch of BIC 1 & BIC 2, BIC has created a they are already providing high cash returns. They present good
branding synergy. prospects for the future.

In the twin blade sector, BIC has launched premium products such Cash cows have reached the maturity stage and are now
as Comfort Twin and Twin Lady. These products target consumers ‘yielders’. They have a high market share in markets that are no
demanding enhanced features and benefits while still offering longer rapidly expanding. However, they will need ongoing
excellent value for money. In 2003, BIC launched its first triple marketing support and will need ‘freshening up’ from time to time.
blade shaver for men BIC Comfort 3 and one year later BIC Soleil
Lady for women. Both of these products offer greater innovation Dogs are products in decline. These have a low market share in a
and technologically enhanced features and benefits at attractive low-growing or declining market. Because they generate a
prices. negative cash flow, they will usually be disposed of.
 Market Share
Cristal Range Sales Units
High Low
Sales Growth
Stars Problem children driven by new
Cristal Grip Cristal Colours products
Cristal Gel Cristal Pocket Scents
High Twin Lady Comfort 3 Soleil

Market Growth

Low Cash Cows Dogs

Cristal Ball Pen Tough Beard 2003 2004
Classic Shaver

This led to the launch of a range of new products:

• Cristal Grip, for more comfort
• Cristal Colours, for fashionable colours
The Boston Box can be applied to BIC products. The Cristal Ball • Cristal Pocket, for a more convenient size
Pen and Classic Shaver are popular and well established products • Cristal Pockets Scents, for fun and fruity inks
with very high unit sales. BIC produces them on a large scale. • Cristal Gel, for smoother writing.
They provide excellent cash profits for the company.
By continually adding to the range, BIC manages to inject new life
The Cristal Grip and Cristal Gel Pens, and Twin Lady shavers are into the product life cycle of the overall range. BIC now offers a full
stars with well established growth patterns. For example, the Twin range of Cristal pens using both ball point and gel ink technology. The
Lady filled the gap in the market for shavers for women. range’s development has also helped to support the enhancements of
the core brand, and each year sales of Cristal pens increase.
Problem Children that have recently entered their respective
markets include Cristal Colours and Cristal Pocket Scents in the 05_The product life cycle
pen market, and Comfort 3 and Soleil in the shavers market. and promotional activity
Currently BIC is investing in these products. Over the next two or
three years the company will decide whether these products have BIC analyses its products, and promotes and supports these in line
succeeded (moved into the star category) and warrant continued with their stage in the product life cycle. For example, BIC Cristal
support. Products such as Soleil (a shaver for women) are rapidly and the Classic shaver have a long life cycle and although they
moving into the star category. have had technological improvements over the years and are
produced using more advanced manufacturing techniques, the
Of course, some products fail to take off sufficiently and/or go into style and design of these products have not changed. They are still
decline. The ‘Tough Beard’ shaver has not warranted further recognisable worldwide. Initially, when these products were
development and BIC has taken it out of production. launched, promotional activity would have focused on generating
awareness and encouraging consumers to trial the products. Now
04_Developing the product range that these products have become well established icons, the
promotional emphasis is on rewarding loyal customers who
The Cristal range of pens demonstrate how to inject new life into continue to buy these products.
a product range.
We can illustrate the way in which promotional activity is tailored
BIC’s Cristal Ball pen was launched in 1951. It has over 30% to stages in the product life cycle.
market share and is the UK’s best-selling ball pen.
Examples of promotional activity at different stages
of product life cycle
In 1964 BIC launched BIC Orange. This is a fine-point version of
the Cristal pen, easily recognised by its orange barrel. Launch and Growth Maturity
introduction

In the 1990s, as the Cristal and Orange Ball pens became more Try Me free offers Price discount Rewarding loyalty
Added value Higher pack size
mature and encountered fierce competition from lower priced Third party
brands, BIC invested in developing the Cristal range to attract new
Free samples Buy 1 Get 1 Free or 3 e.g. 2 extra free
users and to differentiate itself from the competition. for 2
Special advertising Advertising support Continued advertising
support support
Event campaigns,
integrated at every level
 that more and more consumers try it out and are converted into
Life cycle stage and promotional activity regular users. At this stage, advertising and special offers
Life cycle Launch/ Growth Maturity encourage new users to try the product.
stages development
As a product moves towards maturity, BIC’s marketing experts
Product Comfort 3 Twin Lady Classic
need to identify ways of injecting new life into it. They must also
Promotional activity Promotional activity Promotional activity identify new product developments that can meet similar consumer
needs. This explains why, for example, BIC has developed
Introductory offers Two for price of Buy 10, get an extra extensions to the Cristal range.
one offers two free to reward
loyalty
Once a product has saturated a market, sales will stagnate.
Sampling e.g. free Advertising support: Free samples when However, it is important to continue to support cash cows because
samples given out at national press, buying other BIC they play a vital role in injecting profits that sustain new product
rugby grounds trade magazines razors development.

Advertising: national Handing out

Once a product has moved into decline, a company like BIC will look
press, bill boards coupons outside
supermarkets to replace it with new products that meet existing and evolving
consumer needs. For example, the razor Tough Beard was taken out
Advertising: trade Providing more of the product portfolio because other new BIC razors were better
magazines in-store support to able to meet the needs of customers with ‘tough beards’!
help retailers
advertise the
product 06_Conclusion
Use Martin Johnson Businesses that understand the Boston Box and product life cycles
(winning England
are able to target appropriate promotional activities to support the
captain) to
represent the various products in their portfolio. Well established products such
brand. Distribute as BIC Cristal and Classic shaver are the cash cows that enable
free samples during BIC to thrive by developing its stars and some of its question
his book launch, and marks in line with market needs. BIC is an innovative organisation
outside rugby
that uses its technical and marketing expertise to supply consumers
grounds
with the products they want and need.
Exhibitions and
Public Relations
drives Glossary
Add value: Increase a product’s end value by making it more
The chart shows that the emphasis in desirable to consumers.
promotional activity alters over time
Below the line: Promotional activity other than advertising.
Promotional Emphasis Emphasis on Emphasis on
activity on raising building repeat rewarding Boston box: A matrix illustrating how stages in a product’s
to drive awareness purchases, and loyalty life cycle relate to the cash flows the product contributes to
trial understanding
of product business growth.
benefits
Core range: A company’s most important products, and
time which underpin its profitability.

When BIC launched the Comfort 3 razor, it chose Martin Johnson to Market research: Investigations to discover customer wants
represent the brand. BIC invested heavily in outdoor media such as and needs.
billboards and conducted national press advertising to raise awareness.
Promotional activities: Actions that serve to communicate
With Cristal Gel, BIC carried out a large amount of below the with customers e.g. advertising.
line activity. To build awareness of the new product, BIC supplied
existing Cristal Ball pen users with Cristal Gel samples through
special promotional packs and other sampling campaigns to office For more information about BIC
users. This was supported by advertising and direct marketing. please browse:

During a product’s growth period, BIC continues to use market www.bicworld.com

research data to help it better understand market developments and
consumer requirements. It also continues to support the product so