Tag Archives: product life cycle

Chew on this – Declining Gum Sales

Do you chew gum? The odds are that you probably used to chew gum, but have fallen out of the habit. One reason for the sales decline – Covid-19 lockdowns hit our snacking sales and impulse buys at stores. Gum is one of those products that people tend to pick up at check-out at the last minute. Closed stores equals no sales.

According to research firm Euromonitor, the pandemic hit gum sales hard – global gum sales fell from $19.5 billion in 2019, to $16.1 billion in 2020, and are still low at $19.7 billion. But a new $50 million ad campaign from Mars Wrigley hopes to increase gum sales with a new approach. The campaign will run in 70 countries, with a heavy investment in Europe.

Previously, chewing gums were positioned along the lines of fresh breath and long-lasting taste. But now Mars is taking a new approach – that gum can help with mental wellness by quieting the ‘mouth in your mind’. In other words – a stress reliever. Indeed, some research has shown that chewing gum can help with focus and stress. But will linking gum to wellness work?

Ask me when I’m done chewing.

Group Activities and Discussion Questions:

  1. Poll students about their gum-chewing habits.
  2. List all the gum brands on the board that students can recall.
  3. Why has chewing gum fallen out of favor?
  4. Where is chewing gum in the product life cycle?
  5. Show new ads: https://www.youtube.com/@ExtraOfficialUK
  6. What are student opinions about the ad?
  7. View Mars Wrigley website: https://esp.mars.com/en/made-by-mars/mars-wrigley?language_content_entity=en
  8. Review key aspects of developing a product positioning map, including determining the axis labels for positioning.
  9. Divide students into teams and have each team develop a positioning map for chewing gum. How can gum be re-positioned?

Source:  Deighton, K. (12 June 2024). Gum sales peaked in 2011. Can Mars Wrigley get people chewing again? Wall Street Journal; Mahdawi, A. (14 March 2024). Stressed out? Get chewing. The Guardian.

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Chevy Malibu comes to the End of the Road

It seems that all good things must come to an end. And one of those things, Chevy’s Malibu sedan, is nearing the end of its life cycle. The model was first launched in 1964 and was marketed as the Chevy Chevelle, before eventually becoming the Chevy Malibu in 1978. Over the years, Malibu sold 10 million cars and was the choice for a family sedan.

But now this car model is entering its twilight time as GM announced it would end production later this year. Taking its place, GM is preparing to launch new electric vehicles (EV) including the new Chevy Bolt EV. The Malibu was the last car/sedan sold by Chevy in the U.S. Only the Corvette remains – and that’s definitely not a sedan.

GM isn’t alone; Ford and Stellantis have also stopped making sedans as consumers’ taste has moved on to SUVs and trucks in the U.S. Last year, only 8% of new car sales in the U.S. were mid-sized, down from 22% in 2007.

Bye, bye, Malibu. We’ll miss you.

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Show Chevy Malibu website: https://www.chevrolet.com/cars/malibu
  3. What stage of the PLC is the Chevy Malibu now entering?
  4. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  5. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Associated Press. After 60 years, Chevrolet Malibu rides off into the sunset (10 May 2024).; Boudette, N. (8 May 2024). G.M. will retire the Chevrolet Malibu to make more electric cars. New York Times; Windolf, J. (9 May 2024). The Chevy Malibu was so uncool it was cool. New York Times.

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Tesla is Now Spending on Advertising

Times are changing. Habits evolve. Products adapt. And, what worked in the past might not work today.

Here’s an example: Tesla has long avoiding the costs of advertising in any traditional way. Its own CEO, Elon Musk, has stated that he hates advertising. To date, Tesla has depended on its own social media accounts, consumers’ social media, stores, press coverage, and strong word-of-mouth branding. Plus, Elon Musk has access to a very large social media platform/followers and uses it to the company’s advantage.

But, Musk has changed his mind and spent about $6.4 million on digital advertising in the U.S. in 2023. While this is definitely an uptick from spending of only $175,000 in 2022, it pales in comparison to other automotive companies’ spending. For example, General Motors spent $3.6 BILLION on advertising and promotion in 2023.

 So, where is Tesla advertising? Well, it is spending primarily on digital advertising on X (another Elon Musk company), Facebook, Instagram, and YouTube. Tesla has also bought Google search ads. Current Tesla advertising focuses on family and safety – this repositions the company from a sports car to family car.

And, why is Tesla advertising now? Perhaps it’s because its stock price is down, growth has declined, and competition has increased. Some of its ads even included promotional pricing to lower the cost of buying.

What do you think?

Group Activities and Discussion Questions:

  1. Poll students: How has Tesla historically marketed its vehicles?
  2. Why is Tesla now advertising?
  3. View Tesla YouTube ads: https://youtu.be/L2fticPH-to?si=6Q4zwI6gXHaHryLh  
  4. View Tesla ads on X: https://twitter.com/Tesla/status/1770846108098375680?s=20
  5. Poll students: Who has seen an ad for Tesla on any of their social media feeds?
  6. Discuss the Product Life Cycle (PLC) and how advertising is used at each stage.
  7. Have students draw a PLC and place the EV industry. Then have them place other automobile companies.
  8. Given this, have the teams develop a marketing program for Tesla.

Source: Haggin, P. & Coffee. P. (29 March 2024). Tesla dives into advertising after years of resistance. Wall Street Journal; Kafka, P. (5 March 2024). Elon Musk has a unique plan to solve Twitter’s ad problems. Business Insider; Quiroz-Gutierrez, M. (29 March 2024). Tesla scraps Elon Musk’s no-advertising mantra as stock nosedived nearly 30% this year. Fortune.

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