Product Life Cycle

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Progresses of a product through a sequence of stages from introduction to growth, maturity, and decline. Linked with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. Product Life Cycle

Progresses of a product through a sequence of stages from introduction to growth, maturity, and decline.

Linked with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.

Product Life Cycle Introduction Growth Maturity Decline

Introduction Stage Building product awareness and develop a market for the product. Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing Penetration pricing to build market share rapidly, or skimming pricing to recover development costs. Distribution selective channel until consumers show acceptance of the product. Promotion Marketing communication to build product awareness; product knowledge sometimes market education. Product Life Cycle

Introduction Stage

Building product awareness and develop a market for the product.

Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained.

Pricing Penetration pricing to build market share rapidly, or skimming pricing to recover development costs.

Distribution selective channel until consumers show acceptance of the product.

Promotion Marketing communication to build product awareness; product knowledge sometimes market education.

Product Life Cycle Growth Stage Increase market share Product: Maintain the quality of product and additional features and support services may be added. Pricing: Penetration pricing. Distribution: Add some channel as increasing of demand. Promotion: Designed at a broader audience .

Growth Stage

Increase market share

Product: Maintain the quality of product and additional features and support services may be added.

Pricing: Penetration pricing.

Distribution: Add some channel as increasing of demand.

Promotion: Designed at a broader audience .

Maturity Stage High voltage competition; competitors come with similar products Product: Improve the content to distinguish with competitors. Pricing: maintain or lower. Distribution: Incentive may be offered to maintain availability and visibility. Promotion: Communicate product differentiation; benefit and advantages. Product Life Cycle

Maturity Stage

High voltage competition; competitors come with similar products

Product: Improve the content to distinguish with competitors.

Pricing: maintain or lower.

Distribution: Incentive may be offered to maintain availability and visibility.

Promotion: Communicate product differentiation; benefit and advantages.

Decline Stage Sales decline, limited existence in the market Product Life Cycle Recovery Strategy !

Decline Stage

Sales decline, limited existence in the market

Recovery Strategy Brand Refreshment Market Expansion / diversification Market Penetration

Brand Refreshment

Market Expansion / diversification

Market Penetration

Process of a product or service to changes in this case to making “fresh” the concept of content and context in order to awake in saturated market. New packaging New packaging will attract non base customer and at the same time keep current customer, it is part of company responsible to always being innovative in order to satisfy the customer. New item variation or additional features In order to give more choices for the customer and suitable the customer preference. Communicate, public announce, new promotion concept “ good content without good context is impossible” After all, the next task is communicate the brand refreshment concept to the customer effectively. Brand Refreshment

Process of a product or service to changes in this case to making “fresh” the concept of content and context in order to awake in saturated market.

New packaging

New packaging will attract non base customer and at the same time keep current customer, it is part of company responsible to always being innovative in order to satisfy the customer.

New item variation or additional features

In order to give more choices for the customer and suitable the customer preference.

Communicate, public announce, new promotion concept

“ good content without good context is impossible”

After all, the next task is communicate the brand refreshment concept to the customer effectively.

Market Expansion Concentric Diversification Strategy The strategy that include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, and licensing of new technologies in order to keep the company’s exist. Related product – market expansion. Horizontal Diversification Strategy The company adds new products or services that are technologically or commercially unrelated to current product. New product proposed to support the current product.

Concentric Diversification Strategy

The strategy that include internal development of new products or markets, acquisition of a firm, alliance with a complementary company, and licensing of new technologies in order to keep the company’s exist.

Related product – market expansion.

Horizontal Diversification Strategy

The company adds new products or services that are technologically or commercially unrelated to current product.

New product proposed to support the current product.

Market Penetration The strategy to gain competitor’s customer, convincing current customer and attract new potential market. Increasing production capacity Increasing advertising to penetrate the market To serve a new potential market. Ex: Sumatra Island Build new factory

The strategy to gain competitor’s customer, convincing current customer and attract new potential market.

Increasing production capacity

Increasing advertising to penetrate the market

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