PRODUCT LIFE CYCLE CURVE

GROWTH (E.G. SALES, VOLUMES)

LAUNCH

DEVELOPMENT

TIME
INTRODUCTION GROWTH MATURITY DECLINE

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 PRODUCT LIFE CYCLE CURVE
GROWTH (E.G. SALES, VOLUMES)

LAUNCH

DEVELOPMENT

TIME
INTRODUCTION GROWTH MATURITY DECLINE

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 PRODUCT LIFE CYCLE CURVE

GROWTH (E.G. SALES, VOLUMES)

LAUNCH

DEVELOPMENT

TIME
Identifying
Features INTRODUCTION GROWTH MATURITY DECLINE
Sales Low High High Low
Investment Cost Very High High Low Low
Competition Low or no competition High Very High Low
Advertising Very High High High Low
Profit Low High High Low

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 PRODUCT LIFE CYCLE CURVE

GROWTH (E.G. SALES, VOLUMES)

LAUNCH

DEVELOPMENT

TIME

INTRODUCTION GROWTH MATURITY DECLINE

Augment and Phase out weak
Refine the product
Educate the market and build differentiate the models, reduce
Focus and build brand
brand identity product and build costs, and milk the
preference
brand reputation brand
Marketing
Latent Emerging Fragmented Eroding
segmentation
Competition Limited Growing Fierce Fading

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 PRODUCT LIFE CYCLE CURVE

GROWTH (E.G. SALES, VOLUMES)

LAUNCH

DEVELOPMENT

TIME
Marketing
GAIN AWARENESS STRESS MAINTAIN BRAND HARVESTING,
objective DIFFERENTIATION LOYALTY DELETION
Competition Few More Many Reduced
Product One More versions Full product line Best sellers
Gain market share, Defend market share,
Price Skimming or penetration Stay profitable
deal profit
Stress competitive
Promotion Inform, educate Reminder oriented Minimal promotion
differences
Place (distribution) Limited More outlets Maximum outlets Fewer outlets

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 PRODUCT LIFE CYCLE CURVE

MATURITY
1. costs are lowered as a
result of production
volumes increasing and
GROWTH experience curve effects
2. sales volume peaks and
market saturation is
1. costs reduced due to reached
economies of scale 3. increase in competitors
2. sales volume entering the market
increases significantly
3. profitability begins to
4. prices tend to drop due to
the proliferation of
DECLINE
rise competing products
4. public awareness 1. costs become counter-
5. brand differentiation and
INTRODUCTION increases
5. competition begins to
feature diversification is
emphasized to maintain or
optimal
2. sales volume decline
increase with a few increase market share 3. prices, profitability diminish
1. costs are very high new players in 6. Industrial profits go down 4. profit becomes more a
2. slow sales volumes to start establishing market
6. increased competition challenge of
3. little or no competition
leads to price production/distribution
4. demand has to be created
GROWTH (E.G. SALES, VOLUMES)

decreases efficiency than increased

5. customers have to be prompted
sales
to try the product
6. makes no money at this stage

LAUNCH

DEVELOPMENT
TIME

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