product life cycle model and their stages

1. Presented by;
SINEGA.R

2. INTRODUCTION
 A Company’s positioning and differentiation
strategy must change its product, market and
competitors change over the product life cycle.
There are four things that assert the product;
I. Product have a limited time
II. Product sale pass through distinct stages
III. Profit raise and fall in different stages
IV. Product requires different departmental
strategies in each life cycle

3. PRODUCT LIFE CYCLE
 They are typically divided into four stages they
are;
1) Introduction
2) Growth
3) Maturity
4) Decline

5.  Introduction – when the product is introduced
and struggles to gain brand recognition
 Growth – advertising and word of mouth helps
the product to increase sales. As sales growth,
more firms are willing to stock the product
which helps the product to grow even further.
 Maturity – When the product reaches peak
market penetration.
 Decline – the product gets eclipsed by new
products

6. STRATEGIES CONSIDERATIONS IN
PRODUCT LIFE CYCLE
The strategies considered in product life cycle
are;
1. Competition
2. Over all strategic focus
3. Profit
4. Distribution strategies
5. Advertising strategies

7. COMPETITION
 At the introductory stage , competition is given
no important the growth stage, it is little
important while at the maturity sage, there are
many in the market slowly, however, the
number of competitors or rival gets reduced
with the declining stage.

8. OVERALL STRATEGIC FOCUS
 At the first stage, emphasis is laid on market
establishment. At the growth stage, market
penetration and persuasion of mass market are
emphasized. Creation of brand loyalty and
brand preferences is focused at the maturity
stage. At the decline stage, the strategy aims at
overall preparation for renewal.

9. PROFIT
 At the introductory stage, profits are negligible
but at the growth stage, they reach the peak
levels as a result of growing demand. At the
maturity stage, they decline due to the
increasing competition. At the last stage, the
declining volume pushes costs up and
eliminates profits.

10. Distribution Strategies
 At the introductory stage, distribution is
selective. However, at the growth and maturity
stages, it is intensive. At the decline stage, it
becomes selective and hence low-end strategies
are used.

11. Advertising Strategies
 At the introduction stage, advertising strategies
aim at the needs of early adopters; at the
growth stage, an attempt is made to make the
mass market aware of brand benefits. At
maturity stage, advertising is used as a vehicle
for differentiating among otherwise similar
brands. At the last stage, however, it
emphasizes on low price of the product and
minimum advertising expenditure.

12. Benefits of Product Life Cycle
 Strategies – helps in defining the strategy of
the product
 Decision making –Product life cycle helps
managers with such decision making
 Forecasting (sales becomes easier) – With
enough experience, it is easier to forecast how
a product will move through the product life
cycle and therefore, what levels of sales will it
achieve.

13. Limitations of the Product Life
Cycle
 Fluctuations in sales data – One major problem in the Product life cycle is
that the graph is completely dependent on sales data. Thus if there are
fluctuations in the sales data, then the graph is useless and cannot be used to
predict precisely .
 Delay in sales data – Another limitation for the product life cycle is that
there is delay in collecting and analysing the sales data.
 Varying market conditions – There may be a variance in the sales data due
to varying market conditions. Therefore products which are hit in one place,
might not be hit in other regions or territories due to the differences in
consumption patterns of those territories.
 Effect of other elements – There are various other elements which effect
the product life cycle. Product itself is just one P amongst the 4 P’s of
marketing.

14. THANK YOU