Summary of Product Life Cycle:

(Characteristics / Objectives / Strategies).

Characteristics:
1. Sales Low Sales Rapidly
Increasing Sales
Pea Sales !eclining Sales
2. Costs "igh cost per
c#sto$er
%verage cost per
c#sto$er
Low cost per
c#sto$er
Low cost per
c#sto$er
3. Profits &egative 'ore Pro(it "igh Pro(it !eclining Pro(it
4. Customer Innovators )arly %dopters )arly 'ajority *
Late 'ajority
Laggards
5. Competitor +ew 'ore in n#$ber
Stable n#$ber,
beginning to
decline
!eclining
n#$bers.
Objecties:
Create prod#ct
awareness and
-rial
'a.i$i/e
$aret share
'a.i$i/e
pro(its and
de(end $aret
share
Red#ce
e.penses 0 $il
brands
Strate!ies:
1. Product O((er basic
prod#ct
O((er prod#ct
e.tension,
service,
warranty
!iversi(y brands
/ $odels
Phase o#t wea
prod#cts
2. Price Change cost *
Price to
penetrate $aret
Price to $atch
better
co$petition
C#t price
3. "istributio#
1#ild selective
distrib#tion
1#ild intensive
distrib#tion
1#ild $ore
intensive
distrib#tion
Selective phase
o#t o(
#npro(itable #nit
4. $dertisi#!
1#ild prod#ct
awareness
a$ong early
adopters and
dealers
1#ild awareness
and interest in
$ass $aret
Stress on brand
di((erence and
bene(its
Red#ce to retain
hard core loyals
5. Sales
Promotio#
2se heavy sales
pro$otion to
ind#ce trial
Red#ce sales
pro$otion d#e
to increased
cons#$er
de$and
'ore sales
pro$otion to
enco#rage brand
switching
Red#ce to
$ini$#$ level

Sales %#troductio# &ro'th (aturity "ecli#e
-i$e