THE PRODUCT LIFE

CYCLE
 Product Life Cycle

w th Maturity
ro
G De
c lin
ti o n e
o du c
Intr
 Stage 1: Introduction
 Stage 1: Introduction
 Occurs when product first enters marketplace
 Promoting consumer awareness
 Getting customers to try new product
 Millions of dollars spent to educate consumers
 Major task: getting product in the marketplace
 Stage 2: Growth
 Stage 2: Growth
 More competitors enter the marketplace
 Adding distribution outlets
 Product improves:
 adding flavors, features, etc.
 Improved to stay competitive
 Sold in more locations
 Stage 3: Maturity Stage
 Stage 3: Maturity Stage
 Sales begin to slow down for the product
 Repeat customers stop buying the product
 Attracting new buyers is a challenge
 Product has reached its peak
 Stage 4: Decline
 Stage 4: Decline
 Sales and profits drop
 Little to no marketing support
 Product may be dropped by company
 There is no longer a demand for the product
The Product Life Cycle Review

Introduction Growth

Decline Maturity
 Manage the Life Cycle
 Product Modification:
 Changing a product’s characteristics
 package, features, appearance, quality
 Companies market this “new” product to increase sales

 Market Modification:
 Strategy to find new customers
 Modify the product to create new target market
 Encourage current customers to use the product more

 Repositioning:
 Change product’s image in relation to competitor’s image
 A change in any of the 4 P’s (Marketing Mix)
Star Wars Product Life Cycle
Example
 Introduction-Star Wars released in 1977

 Growth-More movies made from 1st one

 Maturity-Sales slow after third movie

 Decline-New generation does not care for movies

Product life cycle for stylish PRODUCTS
• A style is the manner in which a
product is presented and certain styles
come and go.
• Acc to Kotler:
“ A style is a basic & distinctive mode of
expression.”
• E.g., Furniture, automobile, clothing,
shoes.
• The current style for mobile phone is
touch screen and this style will last
until a new technology style appears.
So the shape of a style life cycle is like
a wave, as one style fades out,
another appears.
Product life cycle for fashion
• A fashion refer to a currently accepted
style in a specific field. It is a current
trend which can have a long or short life
cycle.
• Fashion tends to grow slowly, remain
popular for a while, then decline slowly
• The demand for the product increases
at a faster rate, reaches to its top &
with the change in fashion the product
life enter to decline stage.
• E.g., readymade garments, purses,
bangles, shoes etc
Product life cycle for fad

• Fads are fashions that enter quickly

with great zeal, peak early & decline
very quickly.
• A fad is a product that is around for
a
short period.
• E.g., garments, caps, hair style,
music albums, films & other fashion
products.
 Factors affecting The product life
cycle
• Rate of technological change.
• Rate of market acceptance.
• Competitor’s entry.
• Economic & managerial
forces
• Risk bearing capacity
• Government policy
 Class Activity
 Take a related Sports Entertainment product
through the 4 stages of the Product Life Cycle:
 Introduction

 Growth

 Maturity

 Decline