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9609 · 3.3.2

Product — practice questions

Practice and worked examples for 9609 Product. Short previews only — attempt the full question in MarkScheme against the official scheme.

Worked example 1

A smartphone model launched 4 years ago shows flat sales and two new rivals. Identify the likely PLC stage and suggest two product strategies.

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Stage: Maturity — established product, sales plateau, intense competition.

Strategy 1 — Product extension: New colour, camera upgrade, or bundle with accessories to differentiate without full relaunch.

Strategy 2 — Line extension: Cheaper "Lite" model for price-sensitive segment (links 3.1.5 mass vs niche).

Alternatively prepare successor model before decline — extension delays but does not prevent eventual replacement.

Worked example 2

A tech company, 'Innovate Inc.', launched a new smart speaker, the 'EchoSphere'. Sales revenue data for the first three years is as follows:

  • Year 1: 800,000800,000
  • Year 2: 3,200,0003,200,000
  • Year 3: 7,200,0007,200,000

Calculate the sales revenue growth rate from Year 2 to Year 3. Based on your calculation, identify the product's stage in the Product Life Cycle and recommend one marketing mix strategy.

Show solution outline

Step 1: State the formula for sales growth rate. Sales Growth Rate (%) = [ (Current Year's Sales - Previous Year's Sales) / Previous Year's Sales ] x 100

Step 2: Substitute the values into the formula. Sales Growth Rate (%) = [ (7,200,000−7,200,000 - 3,200,000) / 3,200,000]x1003,200,000 ] x 100

Step 3: Perform the calculation. Sales Growth Rate (%) = [ 4,000,000/4,000,000 / 3,200,000 ] x 100 Sales Growth Rate (%) = 1.25 x 100 Sales Growth Rate = 125%

Step 4: Identify the PLC stage. A sales growth rate of 125% is very strong and indicates accelerating market acceptance. This places the 'EchoSphere' firmly in the Growth stage of the Product Life Cycle.

Step 5: Recommend a marketing mix strategy. Strategy: Focus on Place (Distribution). Given the rapid growth, Innovate Inc. should aim to expand its distribution channels rapidly to make the product widely available. This could involve securing partnerships with major electronics retailers, launching in new geographical markets, and strengthening its online sales platform to capture the growing demand before competitors can establish a strong foothold.

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