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Product life cycle (Introduction (Strategies (offer sales promotion (price…
Product life cycle
Introduction
product is new in the market
people don't know about products existence
sales are low
profit is non-existent
Strategies
advertise to create awareness of the product in consumers minds
offer sales promotion
price discount
free samples
celebrity endorsement
3 for 2
free delivery
Growth
people become aware of the product
sales are growing
cost of production is falling
competitor are entering the market
Strategies
advertise to differentiate from competitors
raise the price is price discount is in the beginning
think of innovation
Decline
sales are falling
profits made but going down
product saturation
consumers are tired of the product
Strategies
advertise to remind 'TOP OF MIND'
add new features to the product
distribute products in shops or online
reduce the price to increase demand
sell of the product to another company
enter new markets
target different customers in same country
discontinue the product
reduce cost of production
Maturity
sales stabilise
profits are still achieved
there is intensity of competition
Strategies
advertise to remind costumers 'TOP OF MIND'
add new features to the product
distribute more products online or in shops
reduce price to increse demand
Limitations of the PLC
not all products go through all stages
strategies might not always work