PRODUCT LIFE CYCLE

A product life cycle consist of 5 or more stages after development. Product passes through, introduction,
growth, maturity, saturation and decline.

If the operations function cannot perform effectively at this stage, the firm may be saddled with losers—
products that cannot be produced efficiently and perhaps not at all.

INTRODUCTION OF PRODUCT

During Introduction sales begin and profit goes from –veto +ve. In this stage the demand is low. Since
customer don’t know much about the product. The organization has to invest heavily in advertisement
to make the product familiar to the costumers. the volume sales are low and if proper care is not taken,
there are chances of product failure.

GROWTH OF PRODUCT

The product next enters a stage at rapid growth. Early in this stage (due to acceptability of the product
by the costumer) there is drastic jump in sales and profit rise. It is because of limited or no competition.
During this stage the mandate for operation is somehow to keep up with demand; efficiency is less of
concern.

MATURITY OF PRODUCT

At this stage, sales level off and profit begins to decline. New competition create to cut costs and
ultimately on unit profit margin. Now operation must stress on efficiency, although marketing can ease
the pressure by intensifying to differentiate the product.

SATURATION OF PRODUCT

Saturation arises when the volume of a product or service in a marketplace has been maximized. At the
point of saturation, a company can only achieve further growth through new product improvements by
taking existing market share from competitors or increasing overall consumer demand.

DECLINE OF PRODUCT
At last the existing product enters to a declining stage and becomes obsolete. The decline stage in the
product life cycle is when a product dissolves as a result of decreased or negative growth. Either demand
despisers or a better less expensive product.

INTRODUCTION STRATEGY

During introduction stage, one should aim to:

• establish a clear brand identity

• connect with the right partners to promote your product

• set up consumer tests, or provide samples or trials to key target markets

• price the product or service as high as you believe you can sell it, and to reflect the quality level
you are providing

GRWOTH STRATEGY

Some of the common strategies to try are:

• improving product quality

• adding new product features or support services to grow your market share

• keeping pricing as high as is reasonable to keep demand and profits high

• increasing distribution channels to cope with growing demand

• skimming product prices if your profits are too low

MATURITY STRATEGY

• During maturity your market will be saturated and you may find that you need to change your
tactics to prolong the life cycle of your product.

• Common strategies that can help product modification -for example, adjusting or improving
your product's features, quality, pricing and differentiating it from other products in the marking.

DECLINE STRATEGY

At this stage, you will have to decide what strategies to take.

• reduce the number of distribution outlets that sell them

• implement price cuts to get the customers to buy the product

• find another use for the product

• maintain the product and wait for competitors to withdraw from the market first

• harvest the product or service before discontinuing it.

DIMENSION OF PRODUCT STRATEGIES

Product-Positioning strategies include the following

• Product-Repositioning. Product-Overlap.

• Product Scope. Product-Design.

• Product Elimination. New Product.

• Diversification. Value-Marketing.