Life span the product passes through different phases as human life passes through different stages. In human life cycle starts baby, child, adult and old age. In product life cycle starts with introduction stage, growth stage, maturity stage and decline stage. But there is a differention is in case of human cycle we can't say re-birth but in product life cycle there is a chance of re-birth of product after decline. My article provides the characteristics of different stages in product life cycle and strategies followed by the organization to overcome problems.
Characteristics
Introduction stage:
• Product is innovative one
• Low sales
• Product faces teething trouble
• Possibility of profits
• Promotion have to be done more to make people to know about product
• May be go for two pricing strategies
a. Penetration pricing
b. Skimming strategy
Introduction stage strategies:
• Offer basic product
• Use cost-plus
• Build selective distribution
• Build awareness programs among early adopters dealers
• Use heavy sales promotion to entice trail
Growth stage:
• Demand for the product increases
• Size of the market grows
• Profit goes up
• Competitor may enter the market with similar (or)slightly improved version
• Starts using marketing strategy
• May go for competition - oriented pricing strategy
strategies
• Offer product extensions ,service, warranty
• Price to penetrate market
• Build intensive distribution
• Build awareness and interest in the mass market
• Reduce to take advantages of heavy consumer demand
Maturity stage:
• Demand tends to reach saturation stage
• Enough supply from several competing source
• Price competition becomes more pounced
• Make special offers to new market segment
• Long term and short term marketing strategies are implemented
• Relatively low price
• Increased marketing cost
• Lesser profits
Maturity stage strategies:
• Diversity brands and models
• Price to match the best competitor
• Build more intensive distribution
• Stress brand differences and benefit
• Increase to encourage brand switching
Decline stage:
• Declining sales
• Low customer
• Declining profits
• Laggards Decline stage
strategies
• Phase out weak items
• Cut prices
• Go selective-phase out unprofitable outlets
• Reduce to level needed to retain hard-core loyal
• Reduce to minimal level
Advantages
1. facilitate pre-planning the product launch
2.facilitate prolonging the profitable phase
3. facilitates investment decisions on products
4. facilitate entry strategy
5.facilitate right time to exist
6.useful tool to manage customer
About Author / Additional Info:
raghu yadaganti , assistant professor in marketing
source- marketing managemet, ramaswamy,4e