Product Life Cycle

Product Life Cycle Sales Time

What is it? It shows the progress of a product from development to decline It shows the sales that can be expected at each stage in the life cycle. All products go through the product life cycle but it is likely to be different for every product

The Stages Development product is designed, developed and tested Introduction product is launched. Sales are low but growth reasonably high Growth sales begin to grow rapidly

The Stages Maturity product is well established on the market and making profits Saturation sales increasing at a decreasing rate, but still making sales, so product is retained Decline sales and profits are falling. This is often due to changes in fashions and tastes. At this stage the company will probably soon remove the product from the market

Activity Sketch in each of the different stages of the product life cycle and label them. Add in where you think the four stages of the Boston Matrix fit in.

Product Life Cycles Sales Time Introduction Growth Maturity Decline Saturation Development

Where do they fit in? At what stage in the product life cycle are each of these products?

Extension strategies In order to keep the product on the market for longer when it reaches the maturity or saturation stage of the life cycle, companies could adopt extension strategies. This means changing the product in some way.

Product Life Cycles Sales Effects of Extension Strategies Time

How can this be done? Change the appearance or packaging of the product. Encourage the customer to use the product more frequently Develop a wider product range Find new uses for the product Find new markets for the product

Homework For each of the extension strategies, provide an example of a product and how this strategy can help to keep this product name alive on the market. (**Remember, you can change the product as well**) Give an example of a product that fits into each type of cycle (**write this on the sheet**)