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Essay / The role of new product development and launch
At the maturity stage, sales of the product slow down, competitors may start lowering the price of the product or spending more on promotion. During the decline phase, product sales and profits decline and some companies may choose to exit the market (Kolter et al., 2013). The strategy used by companies at the mature stage should focus on maintaining brand royalty, retaining customers and defending the brand through promotion. Additionally, companies should continue to maintain brand awareness to drive repeat purchases (Jobber, 2010). For example, Wakee maintained its brand awareness by continuing to advertise the product on television, sponsoring television programs, or performing product placements in television series. In the decline stage, instead of trying to increase sales, businesses should strategize to improve marketing productivity. The accumulated brand royalty can be used by the company in the future (Jobber, 2010). For example, Wakee stopped promoting the product. Instead, they tried to create brand royalty by creating customer engagement and demonstrating corporate social responsibility. They collect customer feedback through an online survey and organize events like a bottle recycling project to show the company's social activities.