Product Life Cycle

The product life cycle concept suggests that a product passes through four stages of evolution. Introduction, growth, maturity and decline. As a product evolves and passes through theses four stages profit is affected and different strategies have to be employed to ensure that the product is a success within its market.

Product Life Cycle stages

Introduction

As a new product much time will be spent by the organization to create awareness of it presence amongst its target market. Profits are negative or low because of this reason.

Growth

If consumer clearly feels that this product will benefit them in some ways and they accept it, the organization will see a period of rapid sales growth.

Maturity

Rapid sales growth cannot last forever. Sales slow down as the product sales reach peak as it has been accepted by most buyers.

Decline

Sales and profits start to decline, the organization may try to change their pricing strategy to stimulate growth, and however the product will either have to be re-modified, or replaced within the market.