Product Life Cycle. Product life cycle Growth Introduction Decline Maturity.

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Presentation transcript:

Product Life Cycle

Product life cycle Growth Introduction Decline Maturity

Product Life Cycle Development Launch / introduction Growth Maturity Saturation Decline Withdrawal

Features of the different stages of the Life Cycle Sales Costs per unit Competitors Promotion Distribution Price

Product life cycle Growth Introduction Emphasis on marketing and promotion Decline Maturity

Slow sales depending on the product Negative cash flow Few competitors Limited distribution A skimmed price Introduction Features

Product life cycle Growth Aim is to see improved cash flow Introduction Decline Maturity

Improved customer loyalty Ability to compete with other competitors Increased sales Better cash flow Falling economies of scale Product improvements or modifications Growing number of outlets Growth Features

Product life cycle Growth Introduction Decline Maturity Realisation the product has now reached its potential

Maturity Features Sales levels are maintained The product has an established place in the market Hard to increase the volume of sales Cost is at its lowest

Product life cycle Growth Introduction Decline Aim is to prolong the life of a product using extension strategies Maturity

Falling sales Falling number of competitors Price might have to be increased Promotion not as important Decline features

Decline Extension Strategies Cut the price Improve marketing Modify the product Up market the package Introduce new varieties Try a new sales approach