Summary Of Product Life Cycle

Summary of Product Life Cycle: (Characteristics / Objectives / Strategies).

Sales

Introduction

Growth

Maturity

Decline

Time

Characteristics: 1. Sales

Low Sales

2. Costs

High cost per customer Negative Innovators

3. Profits 4. Customer 5. Competitor

Few

Rapidly Peak Sales Increasing Sales Average cost per Low cost per customer customer More Profit High Profit Early Adopters Early Majority + Late Majority Stable number, More in number beginning to decline

Declining Sales Low cost per customer Declining Profit Laggards Declining numbers.

Objectives: Create product awareness and Trial

Maximize market share

Maximize profits and defend market share

Reduce expenses & milk brands

Diversify brands / models

Phase out weak products

Strategies:

2. Price

Change cost +

Offer product extension, service, warranty Price to penetrate market

3. Distribution

Build selective distribution

Build intensive distribution

Build product awareness among early adopters and dealers

Build awareness and interest in mass market

Stress on brand difference and benefits

Reduce to retain hard core loyals

Use heavy sales promotion to induce trial

Reduce sales promotion due to increased consumer demand

More sales promotion to encourage brand switching

Reduce to minimum level

1. Product

4. Advertising

5. Sales Promotion

Offer basic product

Price to match better competition Build more intensive distribution

Cut price Selective phase out of unprofitable unit