Summary of Product Life Cycle:

(Characteristics / Objectives / Strategies).

Sales Introduction Growth Maturity Decline

Time

Characteristics:
1. Sales Low Sales Rapidly Peak Sales Declining Sales
Increasing Sales
2. Costs High cost per Average cost per Low cost per Low cost per
customer customer customer customer
3. Profits Negative More Profit High Profit Declining Profit
4. Customer Innovators Early Adopters Early Majority + Laggards
Late Majority
Stable number, Declining
5. Competitor Few More in number beginning to numbers.
decline
Objectives:
Create product Maximize Maximize Reduce
awareness and market share profits and expenses & milk
Trial defend market brands
share
Strategies:
Offer product
1. Product Offer basic extension, Diversify brands Phase out weak
product service, / models products
warranty
Price to Price to match
2. Price Change cost + penetrate market better Cut price
competition
Build selective Build intensive Build more Selective phase
3. Distribution distribution distribution intensive out of
distribution unprofitable unit
Build product
awareness Build awareness Stress on brand Reduce to retain
4. Advertising among early and interest in difference and hard core loyals
adopters and mass market benefits
dealers
Reduce sales
5. Sales Use heavy sales promotion due More sales Reduce to
Promotion promotion to to increased promotion to minimum level
induce trial consumer encourage brand
demand switching