2) Introduction:
When a product is new in the market, sales are frequently slow some times. It is important for the business to build new production line and do promotion and distribution cost. Still light yet, it can be likely that the product is not profitable. This is because it takes time for the consumers to actually get attracted to it. When a product is launched it price is set high. In other hand the product can be hitting very rapid sales growth.
3) Growth:
After the product has been introduced to the market, Consumers are going to well aware of it through promotions on TV, internet or leaflets. The sales begin to become more profitable. If competitors launch the new version of product, it can slow down the market sales.
4) Maturity:
At some stage of the growth, my business will be levelled off. This means when my product life cycle will come half away through. The product is going to be established at stable market share at this very point. The sales are going to peak off, and my competitors are going to enter the market to take the full advantage of the profits.
5) Saturation:
As more firms will enter in the markets, the product life cycle is going to be saturated. Some of the businesses will be taken out of market, because there are too man firms who are competing for customers. By new, businesses use extension stages to get back into businesses, before they die the markets.
6) Decline:
this is when the product life cycle is going to be declined because of new technology or their might be new introduction of a new production, usually this happens because consumers tastes begin to change. This hat makes the sales so low.
All the products have same life cycle. They end up in exactly same ways. The brand leaders probably will use the extension strategies. Extension strategies can be divided into different categories: defensive and offensive
- Defensive is when the product is only launched for year or two. It is kept on going, until a replacement is made; for e.g. how cars change their designs.
- Offensive is a plan to revitalise a reposition a product to give it a wholl new, long term market.
All extension strategies are done in same ways. Firstly a product is redesigned or reformed. It gets improved into better one. Secondly the product gets extra features on it, so consumers don’t think that this is the same product as last time. This will change people taste. Thirdly a reprised and again it does highly effective promotions, so the product can increase it awareness. The product packaging gets changed, so which ever segment it gets launched. The only thing behind this to not let the consumers now that this is still old but in improved position.
