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PRODUCT

LIFE
CYCLE

By MyAssignmentHelp
• The product life cycle is the cycle of stages a product goes through after been introduced
in the market.

• Every product that is launched in the market has a cycle of its own.

• This is a process which marks the growth or development of a product.


• A product does not get recognized by the customers overnight.

• So, the marketers or the businessmen go through various strategies to ensure the
success of the product.

• These strategies are collectively known as product life cycle management.


• It brings employees, different departments, engineers together to make strategies on
how to fulfill their goal, outperforming competitors, making the product desirable for a
long time.

• An efficient product life cycle management will offer a high quality market, increase the
sale markets, strategising on improving product features, increasing sales opportunities,
etc.

• They make different strategies for each stage.


Introduction Stage

The first stage, the introduction stage is probably the most expensive since the company is
just launching a new product in the market.

As the product has just been introduced in the market, the product sales will be low, and the
profit will remain nominal. Hence, the cost of the product will be high initially, since the cost
of production is high.

An appropriate product life cycle example would be the instance of Nestle’s Maggi which
took several years to make its position in the Indian market.
Growth Stage

• This is the most crucial stage for product life cycle marketing as the growth of sale takes
place rapidly. Since the customer already recognizes the product, a growth of sales is
seen.

• The profit gets increased since the demand for the product is high. Some of the company
only tends to stay until the introduction stage, whereas for other companies, this is the
stage of gaining most profits.
• During this stage, the brands improve the quality of their products, add new features,
spread more outlets, increase distribution channels, and reduce the cost if profit is low.
Maturity Stage
• This is the stage where its potential competitors can threaten the product.
• The maturity stage defines the time when the product has stabilised in the market.
• The manufactures now have to make sure the product remains at its position. The
manufactures need to think logically before making any decision.
• They will gradually decrease the cost of the product since the volume of the product has
been increased.
DECLINE STAGE
• The last stage, i.e., the decline stage is when the product starts to show negative results in the
market.

• There is less cash flows since there are other alternative or better products in the market.

• This is when the brands try to regain its share of production by reminding the customers of the
existence of the product through various promotional strategies.

• However, gaining profit becomes more challenging at this stage since the volume of the sales
decline.

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