Which stages in product life cycle that showing the rapid increasing in the sales?

The product life cycle contains four distinct stages: introduction, growth, maturity and decline. Each stage is associated with changes in the product's marketing position. You can use various marketing strategies in each stage to try to prolong the life cycle of your products.

Product introduction strategies

Marketing strategies used in the introduction stages include:

• rapid skimming - launching the product at a high price and high promotional level
• slow skimming - launching the product at a high price and low promotional level
• rapid penetration - launching the product at a low price with significant promotion
• slow penetration - launching the product at a low price and minimal promotion

During the introduction stage, you should aim to:

• establish a clear brand identity
• connect with the right partners to promote your product
• set up consumer tests, or provide samples or trials to key target markets
• price the product or service as high as you believe you can sell it, and to reflect the quality level you are providing

You could also try to limit the product or service to a specific type of consumer - being selective can boost demand. Read more about the introduction stage of a product life cycle.

Product growth strategies

Marketing strategies used in the growth stage mainly aim to increase profits. Some of the common strategies to try are:

• improving product quality
• adding new product features or support services to grow your market share
• entering new markets segments
• keeping pricing as high as is reasonable to keep demand and profits high
• increasing distribution channels to cope with growing demand
• shifting marketing messages from product awareness to product preference
• skimming product prices if your profits are too low

The growth stage is when you should see rapidly rising sales, profits and your market share. Your strategies should seek to maximise these opportunities.

Product maturity strategies

When your sales peak, your product will enter the maturity stage. This often means that your market will be saturated and you may find that you need to change your marketing tactics to prolong the life cycle of your product. Common strategies that can help during this stage fall under one of two categories:

• market modification - this includes entering new market segments, redefining target markets, winning over competitor's customers, converting non-users
• product modification - for example, adjusting or improving your product's features, quality, pricing and differentiating it from other products in the marking

Read more about the growth and maturity stage of a product life cycle.

Product decline strategies

During the end stages of your product, you will see declining sales and profits. This can be caused by changes in consumer preferences, technological advances and alternatives on the market. At this stage, you will have to decide what strategies to take. If you want to save money, you can:

• reduce your promotional expenditure on the products
• reduce the number of distribution outlets that sell them
• implement price cuts to get the customers to buy the product
• find another use for the product
• maintain the product and wait for competitors to withdraw from the market first
• harvest the product or service before discontinuing it

Another option is for your business to discontinue the product from your offering. You may choose to:

• sell the brand to another business
• significantly reduce the price to get rid of all the inventory

Many businesses find that the best strategy is to modify their product in the maturity stage to avoid entering the decline stage. Find out more about product life cycle - decline stage.

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Introduction

Product Life Cycle Stages

The product life cycle concept suggests that a product passes through four stages of evolution from its initial introduction in the market through to its withdrawal. These stages are introduction, growth, maturity and decline. As a product evolves and passes through the four product life cycle stages, profit levels change and different strategies have to be employed to ensure continued product success.

Product Life Cycle Diagram

Below we have drawn a diagram plotting out each of the stages of the product life cycle

Product Life Cycle Introductory Stage

The introductory stage is the first stage of the product life cycle and occurs as soon as the product is available for sale. During this stage profits are low or non-existent because the firm will need to spend money creating product awareness: marketing campaigns can be expensive. The firm may also need to spend money publicising the product to distributors and retailers. Read our article about how manufacturers persuade retailers to stock their products.

Product Life Cycle Growth Stage

If the introductory stage of the product life cycle is successful, the product will move into the growth stage. At this point retailers are stocking the product and consumers have begun buying it. During the growth stage there is a big increase in sales so that the product will enjoy a period of rapid sales growth. At this point profit will also increase as the manufacturing and promotion costs per unit sold decreases. The challenge for the business is to make the growth stage of the product life cycle, last as long as possible. This may involve product enhancements or entering new markets.

Product Life Cycle Maturity Stage

Rapid sales growth will not last forever so products will move into the third stage of the product life cycle; maturity. In the maturity stage of the product life cycle, sales slow down as product sales have reached a peak. At this stage the business will introduce strategy to try and increase sales such as price reductions and additional promotional campaigns. Such strategy is expensive and is likely to lead to a drop in profits to cover the promotion costs.

Product Life Cycle Decline Stage

The decline stage is the final stage of the product life cycle. As the name suggests in the decline stage of the product life cycle sales and profits start to decline. During the decline stage the product manufacturer may try to change their pricing strategy to stimulate growth, however in most cases the resolution will need the product to be modified, or replaced.

Conclusion

Lots of products will go through each of the product life cycle stages, however there is always an exception to the rule. Products known as fashion, fads and styles have a specific product life cycle and curve. If you would like more information about different product life cycles read our article about fashion, fad and style products.

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