Product Life Cycle
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Product Life Cycle Definition
This term is used to describe the series of stages that each commercial product goes through when it hits the market. These stages include introduction, growth in sales revenue, maturity, and decline. You must pay attention to the life cycle of each of your products. Take note of their performance at each stage, and gather info that you can use to improve future products or offerings.
Product Life Cycle
When an idea for a product comes up with a company, a lot of things have to be set in motion. From the time prototype is ready to the time the finished products are launched and ready the sale, there has to be a life cycle of production processes. This life cycle is referred to as the product life cycle. The product life cyclemanagement is basically the succession of strategies by business management as the product goes through this life cycle.
The main stages of the product life cycle will be discussed below.
Research and development:this is a very important stage. This is where the idea is investigated into and ways of developing it into finished products are discovered.
Introduction:this is the stage where the product is introduced into the market. It is known as launching. Here, the consumers and the public at large get the opportunity to learn about the product.
Growth:when is product is widely accepted by the public, growth is the result. There are increased sales and these call for more production. This is the expectation of every manufacturer and it results if the reception is well enough.
Maturity:there can be a situation when sales are near their highest, but the rate of growth is slowing down. This can be because of new competitors in the market or too much of the products on the shelves.
Decline:this is when sales begin to fall. The excitement that comes with its newness to the market is wearing off. This is the stage of decline.
However, there are extension strategies which can be used to extend the life cycle of the products before it goes into decline. These will be discussed below.
Advertising:this is the creation of awareness. This can be to pitch the product to new audience or to remind existing customers. This can be through social or mass media advertisement or having a promotion.
Price Reduction:people want more quality for lesser prices and thus this is a good extension strategy. Reduce the price for the same quality to drive in more sales. It can be surprising that many would love to get the product but for the price.
Adding Value:proving yourself to care more about the customers by adding value to your product will boost sales. For instance, if you are a smartphone manufacturer, you can add more specifications and better design to the product.
Explore new markets:don’t limit your product to a particular set of markets; open new markets as there are potentially more profitable markets. For instance, many manufacturers look for markets in Africa. Due to the fact that production doesn’t really happen there, it is a viable market.
New Packaging:this is giving your product a new look. It is the same product actually but attractiveness of packaging draw more sales. Note that, people buy more with emotions in play and images help to send messages to the subconscious of buyers. Improve the attractiveness.