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Product Life Cycle

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Product Life Cycle

Although there are many differences between products many follow a product life cycle similar to that of a person. All products go through the same life cycle- but the sales life of some products is longer tan the others. For example the sales life of most cars is about ten years, but the sales of a computer game are only a few months.  

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Development Stage

Products start life in the development stage. Research, development, money and market researches combine to develop an idea and turn it into a product for the Market. It is best to increase the quality of our product enough to get customers attention and think of ways to make them feel them feel they are getting more for their money. When price’s snacks first started out they only started with a small range of flavours, however over the months Price snacks started to develop more ideas and a bigger variety for the market.  

Launching the product

Next it’s the launch- the product is put on sale for the first. This is usually backed up with lots of advertising and sales promotion, such as posters and T.V adverts. During the growth phrase, sales and profitability gradually increase, until the product becomes well established in the market.The product must be fairly regularly advertised and we must make sure that we don’t go over budget with the advertising and we also shouldn’t get carried away with enforcing our point about our product.

The Growth Phrase

During the growth phrase, sales and profitability gradually increase until the product becomes well established in the market. Because of the growth of the product, Price snacks has decided to ease back on the advertising.

Product Maturity

Towards the end of maturity phase the market becomes saturated. There is no room to expand. Eventually sales start to decline as rival products take over and the product becomes absolute. This is where the research and development costs are likely to have been paid off and the some of the profit made from the current product can be put into the research and development of a new product.

Decline

This is where a products life starts to come to an end and be forgotten. If the product was un-successful then the company will allow the product to die out. There would be no need to try and extend its life.

Extension strategies

The extension strategies would take place around the maturity of the product life cycle. This is to try and extend the life of a product and try to get customers attention through special deals like buy one, get one free or supplying discounts. We could also set out competition prizes like money, gadgets or holidays; these points would catch a customer’s attention and keep them coming back.

Aiedan Sagayarajah

Form: 11B

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