Download Product Life Cycle - Business @ Beneavin College

Product Life Cycle
Introduction
• The Introduction stage is probably the most
important stage in the PLC. In fact, most
products that fail do so in the
• Introduction stage. This is the stage in which
the product is initially promoted. Public
awareness is very important to the success of
a product. If people don't know about the
product they won't go out and buy it.
Growth
• If you are lucky enough to get your product out of the Introduction
stage you then enter this stage. The Growth stage is where your
product starts to grow. In this stage a very large amount of money is
spent on advertising.
• You want to concentrate of telling the consumer how much better
your product is than your competitors' products.
• There are several ways to advertise your product. You can use TV
and radio commercials, magazine and newspaper ads, or you could
get lucky and customers who have bought your product will give
good word-of-mouth to their friends/family.
• If you are successful with your advertising strategy then you will see
an increase in sales. Once your sales begin to increase you share of
the market will stabilize. Once you get to this point you will
probably not be able to take anymore of the market from your
competitors.
Maturity
• The third stage in the Product Life Cycle is the
maturity stage. If your product completes the
Introduction and Growth stages then it will then
spend a great deal of time in the Maturity stage.
• During this stage sales grow at a very fast rate
and then gradually begin to stabilize. The key to
surviving this stage is differentiating your product
from the similar products offered by your
competitors.
• Due to the fact that sales are beginning to
stabilize you must make your product stand out
among the rest.
Decline
• This is the stage in which sales of your product begin
to fall. Either everyone that wants to has bought your
product or new, more innovative products have been
created that replace yours. Many companies decide
to withdrawal their products from the market due to
the downturn.
• The only way to increase sales during this period is to
cut your costs reduce your spending