Product Life

CycleBY:

LENY VASIDATUR ROCHMAH145030207121008

BUSINESS ADMINISTRATION UB2014

Product Life Cycle

Product Life Cycle is a normative and descriptive model for the life

of products in general.

Product Life Cycle

Individual product will experience their own variation.

It is important concept that can gives understanding about competition dynamic

of a product.

Product Life Cycle RequirementsProduct has limited life time

Product selling through different phase for which phases gives differentchallenges, chances, and different probles for it sellers

Profits can be ups and downs depend on various product life cycle

Product needs different marketing Strategies, Financial, Manufactur, Purchaseand Human Resources in every stages in product life cycle

Developing ProductThe company find and found a product by enforcing their internal and external factor to forge an ideas.

The ideas then through several process, baked and tested and if they good enough, they got approved

4 Stages of Product Life CycleIntroduction Stage

Growth Stage

Maturiy Stage

Decline Stage

Introduction StageWhen the idea of a product is already approved by the company to be released in public, its initially entering the Introduction stage.

In this stage promoting the product is a crucial factor, the company needs to promote their product in such a way so that it will have maximum impact at the moment of sale

Introduction Stage

Pricing is something else for the company to consider during this phase. Product pricing usually follows one or two well-structured strategies. Pricing might help to minimize the promotion expenditures.

Growth StageIn the growth or market-acceptance stage, both sales and profits increases. Competitors enter in the market in large numbers if the profit outlook is particularly attractive. Sellers shift into secondary demand rather than a primary demand promotional strategy.

Growth StageThe growth stage offers the satisfaction of seeing the product take-off in the marketplace. This is the appropriate timing to focus on increasing the market share. If the product has been introduced first into the market then it is in a position to gain market share relatively easily.

Maturity Stage

During the first part of this period, sales continues to increase, but at a decreasing rate. While sales are leveling off, the profits of both the producer and the retailers are declining. Marginal producers are forced to drop out the market. Price competition intensified.

Maturity StageDuring this period new brands are introduced even when they compete with its own company’s existing product and model. This is the time to extend the product’s life. Pricing and discount policies are often changed in relation to the competition policies.

Promotion and advertising relocates from the scope of getting new customers, to the scope of product differentiation in terms of quality and reliability. The battel of distribution continues using the multi distribution channels.

Maturity Stage

Maturity Stage

A successful product in maturity phase is when the product life time extended beyond anyone’s timely expectation

Decline Stage

In this phase, the selling rate of the product is decreases, and the demand is dropping significantly.

Cost control becomes increasingly critical, advertising declines, and number of competitors whitdraw from the market

Decline StageThis is the time to start withdrawing variations od the products from the market that are weak in their market position. This is must be done carefully since it is often apparent which product variations bring the revenues.

Decline StageThe price must be kept competitive and promotion should be pulled back at a level that will make the product presence visible and at the same time retain the “loyal” customer.

Distribution is narrowed. The basic channel is should be kept efficient but alternative channel should be abandoned.

Ten Ways to Dream Up New Products and Revitalize Older Ones:Take something out of the product

Add something to the product

Listen to consumer’s complaints

Transfer success from one product category to another

Make the task easier

Dream up new uses

Add new distribution channels

Add a dramatic guarantee

Don’t stymie creativity

Look overseas for inspiration

THANK YOU