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Product Life cycle
introduction, growth, maturity, decline, decision point
introduction
Product is researched and gradually developed
Product is finally introduced to the marketplace through a launch.
Business needs to inform potential consumers about the product’s features, availability, package design, brand identification.
Early adopters: First consumers of the product. Other consumers look to these individuals for trend setting.
Growth
Other consumers will follow the early adopters and purchase the product
Most important stage as product will either catch or fail. Careful marketing is crucial
As the product’s popularity increases, competitors enter the market
Competitors will modify the original product
Maturity
Growth is slow, if at all (leveled off)
Companies manage the product through continued advertising — keep the brand in the public eye.
Companies generally earn large profits from product at this point & recoup all costs of research & development and introduction
Decline
Product is failing to attract new consumers.
Sales decrease.
Might be temporary – business assesses the situation.
If not temporary: Big problem!
Decision Point
Last effort to reposition the brand through reformulating / repackaging / reintroducing.
Maintain product until competitors leave OR…
Maintain product until profits can no longer be made OR…
If decline continues, despite attempt at repositioning, business removes it from the market.
Non Traditional Product Life cycles
fad, niche, seasonal
niche
A very short growth stage, that leads to a solid but not financially spectacular maturity stage.
These products have a niche, a small section of the market that they dominate.
fad
A fad is a product, service, or idea that is extremely popular for a very brief period of time, then it becomes unpopular just as quickly
seasonal
Products that are either not available on the market during certain seasons or periods of the year
or are available throughout the year but with regular fluctuations in their quantities and prices that are linked to the season or time of the year
Growth Share Matrix
star, question mark, cash cow, dog
star
Products with high market growth and a high market share
question mark
Products with high market growth but a low market share
cash cow
Products with low market growth but a high market share.
dog
Products with low market growth and a low market share
