So far, EDLP policy at retail has only limited and short-term success against the onslaught of private labels. These days, however, mature brands are losing market share by basing their marketing strategies on traditional approaches which have their roots in the product life cycle. It's time to question the continued validity of the standard model. Traditional strategies based on the introduction and growth phases of the product life cycle, however, still seem effective in today's marketplace because these phases are still driven by establishing needs and brand awareness. Most corporate resources and creativity are traditionally allocated during these phases.
Marketers seem to lose their creative edge when working mature brands and segments.
If Diet Coke offers a truly different and well-marketed benefit that allows them to capitalize on the emerging health position, Diet Coke could retain its traditional position at the top of the diet cola market. Many marketing and advertising professionals seem to think that Kellogg's is crazy to raise their prices. Kellogg's remains tight-lipped about the increases amid speculations that they are trying to compensate for the effects of the 1993 flood in the Midwest. However, I believe that if Kellogg's manages to turn some of this revenue back into creative, integrated marketing efforts for their mature brands, they could substantially increase their market share. I believe Miller Brewing company, for example, is on the right track.