Coca-Cola is a soft drink introduced in 1886 that is available in many cola flavors. It has gone through the typical product lifecycle stages of introduction, growth, maturity, and decline. In introduction, costs are high and sales low as demand needs to be created. In growth, costs decrease as sales and profits increase. In maturity, sales peak as competition rises and prices drop. In decline, costs become inefficient as sales, prices, and profits fall.
2. About Coca-Cola
Type -Soft drink
Country of origin -United States
Introduced -1886
Flavour- Cola, Cola Cherry, Cola Vanilla, Cola Green Tea, Cola Lemon, Cola Lemon
Lime, Cola Lime, Cola Orange and Cola Raspberry.
Related products - RC Cola , Cola Turka , Zam Zam Cola , Mecca-Cola , Parsi Cola ,
Qibla Cola, Evoca Cola , Corsica Cola
3. Product life-cycle management
• Product life-cycle (PLC) Like human beings, products also have an arc.
From birth to death, human beings pass through various stages e.g. birth,
growth, maturity, decline and death. A similar life-cycle is seen in the case
of products. The product life cycle goes through multiple phases, involves
many professional disciplines, and requires many skills, tools and
processes. Product life cycle (PLC) has to do with the life of a product in
the market with respect to business/commercial costs and sales
measures. To say that a product has a life cycle is to assert three things:
• Products have a limited life,
• Product sales pass through distinct stages, each posing different
challenges, opportunities, and problems to the seller,
• Products require different marketing, financing, manufacturing,
purchasing, and human resource strategies in each life cycle stage.
5. INTRODUCTION stage
• costs are very high
• slow sales volumes to start
• little or no competition
• demand has to be created
• customers have to be prompted to try the
product
• makes no money at this stage
6. GROWTH stage
• costs reduced due to economies of scale
• sales volume increases significantly
• profitability begins to rise
• public awareness increases
• competition begins to increase with a few new players in
establishing market
• increased competition leads to price decreases
7. MATURITY stage
• costs are lowered as a result of production volumes
increasing and experience curve effects
• sales volume peaks and market saturation is reached
• increase in competitors entering the market
• prices tend to drop due to the proliferation of competing
products
• brand differentiation and feature diversification is
emphasized to maintain or increase market share
• Industrial profits go down
8. DECLINE stage
• costs become counter-optimal
• sales volume decline
• prices, profitability diminish
• profit becomes more a challenge of production/distribution
efficiency than increased sales
