Product life cycle

Stage 1: Development.

During this stage, the product is being designed, developed and tested.

• Which can takes years

• most expensive stage and important stage.

• Market research is important during this stage, as business would want to make sure the product is something consumers will purchase once on sale.

Stage 2: Introduction/Launch

• once developed and researched, it’s ready to be launched.

• Need to backed up by advertising + other forms of promotion.

• Likely slow at this rate as consumers and retailers are sometime unwilling to take on an unknown product.

• Should gradually increase.

Stage 3: Growth

• Sales are growing rapidly.

• Consumers and business owners take interest.

• Will begin to be sold more.

• However, product still needs advertised to ensure growth continues along the growth phase and maturity.

Stage 4: Maturity

• Reaches peak of its sales

• Remains stable through the life cycle

• Costs and profits at highest.

• Focus on persuading customers to make repeat purchases

• Will want to extend this phase for a long period of time

• Therefore, business may use extension strategy to prolong this stage, and prevent product to decline.

Stage 5: Saturation

• Market will become saturated as competitors bring out rival products onto market.

• Sales begin to fall and profits level drop.

Stage 6: Decline

• product gets taken of market

• Replaced with a new product.