Every living thing has a life of limited duration similarly a when an product idea is commercialized , product enters in the market, nobody can predict the length of a product life. This can be called as product life cycle. The product life cycle is also known as product market life cycle because every product is associated with a particular market. The product life cycle differs from one product to another, it may be short as short as months for some product while for another product it can be for centuries and more. According to Frobes.com nearly 95% of product fails in the market every year.
every product passes through various stages such as introduction stage, growth stage, maturity stage, saturation stage and the last stage is decline stage.
Product life cycle has five stages by which every product pass through, each stages has its own advantages disadvantages and characteristics, life cycle concept may also apply to a particular brand as well as products. As the product passes through each cost of product and cost of marketing mix changes according to opportunities and challenges in the market.
Following should must be done in this stage-
This is the next stage after the introduction stage in this stage, product satisfied the market and gains acceptance from the consumers as well as the business people. Sales increases and profit also increase because customer become more aware about the product. At this stage competitors enters the market with the product substitute product in large number. customer for the product also increase , old customer remain with the product and new customer also appears. As sales and profit increases the companies often increase it potential market. Promotional cost are even higher in this stage because of the competitors to prove that their products are better than the competitors.
Following should be done in this stage-
At this stage competition increases even at a higher rate. In which sales continue to increase but at a decreasing rate, competition may be the reason for decrease in market share as well as the prices. The competitive product are seen generally similar to the product. The most important aspect to be taken care at this stage is product modification to minimize the effect of the competition. Additional expenses are involved in product modification and improvement in the marketing mix and product mix to attract the customer and retain in the market.
Following should be done in this stage-
At this stage the sales are at its peak and further increase in sales and profit is not possible. The demand for the product become stable in this stage. Rise and falls in the sale of the product depend upon the supply and demand in the market. during this stage company need to replace the existing product with a new one because increase in the sale of the existing product is not possible.
Following should be done in this stage-
At this stages product become outdated and taste and preference of the consumer changes. Customer get finer and better product in the market so sales tend to decrease because of many reasons such as technological advancements, more competition, change in customer desires etc. A product cannot stand in the market, many company close down its market at this stage. It is also possible that company may shift its attention to another product for the profit generation.
Following should be done in this stage-
every product passes through various stages such as introduction stage, growth stage, maturity stage, saturation stage and the last stage is decline stage.
1. Introduction Stage
When a product is introduced in the market for the 1st time is termed as introduction stages, this is the most expensive stage in the product life cycle for a company as the market for the product is small which means the sales is also low until the customer become aware about the product. This stage is also knows as infant stage, the product is new one so this stage need a greater amount of investment. In this stage the sales are low, profit margin is less, cost of marketing is high, awareness about the product in the market is also low. Some companies may announce the product which is going to launch before its introduction in the market. In this stage main aim of the companies is to generate more sales, establish a market and also to generate primary demand.Following should must be done in this stage-
- Company should properly advertise about the product before its introduction in the market.
- Huge investment in promotional mix
- Formulation of new pricing and marketing strategies.
- Proper attention should be paid a greater attention.
This is the next stage after the introduction stage in this stage, product satisfied the market and gains acceptance from the consumers as well as the business people. Sales increases and profit also increase because customer become more aware about the product. At this stage competitors enters the market with the product substitute product in large number. customer for the product also increase , old customer remain with the product and new customer also appears. As sales and profit increases the companies often increase it potential market. Promotional cost are even higher in this stage because of the competitors to prove that their products are better than the competitors.
Following should be done in this stage-
- Improvement of the product quality.
- Increase investment in promotional activities.
- Provide various offers to attract the buyers.
- Expand the market segments.
- Add new features in the product to improve its quality
At this stage competition increases even at a higher rate. In which sales continue to increase but at a decreasing rate, competition may be the reason for decrease in market share as well as the prices. The competitive product are seen generally similar to the product. The most important aspect to be taken care at this stage is product modification to minimize the effect of the competition. Additional expenses are involved in product modification and improvement in the marketing mix and product mix to attract the customer and retain in the market.
Following should be done in this stage-
- Improve the quality of the product.
- Try and give modification in the product to increase the market share.
- Try to increase the user of the product.
- Proper investment in promotional activities.
At this stage the sales are at its peak and further increase in sales and profit is not possible. The demand for the product become stable in this stage. Rise and falls in the sale of the product depend upon the supply and demand in the market. during this stage company need to replace the existing product with a new one because increase in the sale of the existing product is not possible.
Following should be done in this stage-
- Introduction of the new product model.
- Introduce new package and repricing.
- If prices are high it company should provide product at installment basis.
At this stages product become outdated and taste and preference of the consumer changes. Customer get finer and better product in the market so sales tend to decrease because of many reasons such as technological advancements, more competition, change in customer desires etc. A product cannot stand in the market, many company close down its market at this stage. It is also possible that company may shift its attention to another product for the profit generation.
Following should be done in this stage-
- Improve the product in functional sense .
- Plan a effective and efficient marketing mix.
- Abandon of the product.
- Revitalize the product.
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