Product life cycle

Unit 2
Stages of the Product Life Cycle

• Introduction
• Growth
• Maturity
• Decline
Introduction stage

• Introduction of product into the market

• Low sales
• Low profit or Loss
• Heavy expense
• Innovator customers
Strategies of Introduction stage
Growth stage

• Period of rapid market acceptance

• Start generating profit
• Increases the no of customers
• Increases sales
Strategies of Growth stage

• Improving the quality of products

• Addition of new attributes
• Selecting new channels of distribution
• Reduction in price
• Increase promotion
Maturity stage

• Slow down in sales growth

• Peak sales
• High profit
• Product acceptance by potential buyers
• Profit stabilized or start decline
• Increase competition
Strategies of Maturity stage

• Improving the quality of products

• Increasing the usage among the present customers
by adding new and different utilities
• Forming new buyers
• Devising effective promotional and Advertising
programmes.
Decline stage

• Sales going down

• Profit decreases
• Customers switch to other products
Strategies for Decline stage

• Improve the product

• Effective production and marketing programme
• Cost control
• Abandon the product
Thank you