Assignment

Product life cycle

Presented To Sir Sabahat

By:

Rimsha baloch

(5335)

Product Life Cycle:All products go through the four stages during their life. To achieve optimum product/service performance different strategies can be applied during each stage. Product Life Cycle sales are not constant, there are variations in levels of demand, the amount of competition in the market place, consumer understanding and liking of the product and the share of the market the product captures.

The Four Stages of Product Life Cycle are:1. Introduction1. Growth1. Maturity1. Decline

Introduction: The product is introduced in the market in this first stage. The organizations seek to build product awareness and develop a market for the product. People should know about the product. The key to success of any new product .introduction is to meet consumers' needs with a quality product at the lowest possible cost in order to return the highest level of profit. Profits are often low or losses are being made, this is because development costs have to be repaid, and advertising expenditure can be high. Some products are introduced to the market in a splash of publicity, hoping to capture as large a market share as soon as is possible.

Some products at introductory stage are: Domex Unilever. Fro Yo Frozen Yogurt. Knorr Qorma Mix. Mabrook Milk. Nestle Pure Life Zinc. Pantene Oil Replacement. Paddle Pop Kidz Dunya. Searle Vitamin Water. Unilever Pure It Air Indus airlines

Growth:Once the introductory stage is over the growth age starts. In this stage the product/service starts to grow. The product is being noticed in the marketplace. The product is becoming more widely known and consumed. Marketing is used to try to establish or strengthen the brand and develop an image for the product. Prices may fall as the first competitors enter the market. An organization can decide if it wants to go for increased market share or increased profitability.If your customers are satisfied with the product they will be telling their friends and family about the product which will help you to increases your sales.

Some products which are in Growth Stage are: Axact Solutions. Burger King. Chang Hong Ruba. Feeha Jamshed Clothing line. Imtiaz Supermarket. Jubilee Insurance. Knorr Beef Mix. Pakola. Q Mobile. 14th Street Pizza.

Maturity:This third stage deals with the product reaching a steady demand. In this stage your sales growth is fast and then it stabilizes. Product changes are needed at this stage. Competitions will in-crease and this has to be responded to. Advertising should be used to rein-force the image of the product in the consumers minds. Sales are at their peak, profits should be high. Differentiating your product from the similar ones and to make your product stand out from the products offered by your competitors is the key to pass this stage successfully.Some products which are in Maturity Stage are: Bonanza. Coca Cola. Everyday Milk. Lipton Tea. Nescafe. Olpers. Pepsi. Redbull. Sting. Sony Xperia.

Decline:This is the last stage which involves discontinue the product/service, replacing it with the new product. Sales can now fall fast, and as a result the range sold is likely to be reduced, with the firm concentrating on core products. Advertising costs will be reduced, and attempts will be made to mop-up what is left of the potential market. Each product sold could be quite profitable as development costs have been paid back at an earlier stage in the life cycle. The best way to go through this stage is to reduce your spending and cuts your cost this will increase your sales.Some products which are in declining stage are: BP Bread. Comfort Fabric Conditioner. Energile. LG Mobile. Metro Cash & Carry. Mr. Burger. Pizza Hut. PIA Airlines. Sprite 3G. Vibe TV.

Conclusion:The Product Life Cycle Stages explain the changes in sales and profitability of products over their lifespan. To improve profitability and market positions, product managers need to use appropriate strategies for each life cycle stage. However, the key to successful manufacturing does not just understand this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.

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