The product life cycle, and strategies to prolong the growth and maturity stages

Concept of the product life cycle

The product life cycle (PLC) is the course of a product's sales and profits over its lifetime. Like a living being, a product is born, grows, matures and declines. The PLC applies most clearly to a product class or form; each stage calls for a different marketing strategy.

1. Introduction. The product is launched; sales grow slowly, promotion and distribution costs are high, and profits are negative or low. The aim is awareness and trial.
2. Growth. Sales rise rapidly as early buyers repeat and others follow; competitors enter; profits rise as unit costs fall.
3. Maturity. Sales growth slows and then levels off; most potential buyers already own the product; competition is intense and profits begin to fall because of price cuts and higher promotion.
4. Decline. Sales and profits fall because of new technology, changing tastes or stronger competition; the firm must decide whether to maintain, harvest or drop the product.

Diagram

 Sales and
 profit
   ^                      _________  sales
   |                  _.-'         '-._
   |.-'                 '-.
   |.'      ___profit___     '.
   |.'.-'           '-.     '.
   |  ______.-'.'                 '.     '.
   |-----------------------------------------------> Time
   | Introduction | Growth |   Maturity   | Decline
   |  (losses below the axis in early introduction)

The sales curve is S-shaped, rising slowly, then steeply, flattening at maturity and falling in decline. The profit curve starts below zero, peaks in late growth or early maturity and falls before sales do.

Strategies to prolong the growth stage

1. Improve quality and add new features and models.
2. Enter new market segments and new geographic areas.
3. Add new distribution channels, such as online stores.
4. Shift advertising from building awareness to building preference and loyalty.
5. Lower prices at the right time to attract price-sensitive buyers.
6. Strengthen after-sales service and dealer support, so that early buyers recommend the product to others.
7. Build brand loyalty through loyalty schemes and engagement on digital media before competition peaks.

Strategies to prolong the maturity stage

1. Market modification. Find new users or segments (a hair-oil brand that adds a variant for men) and increase usage (encouraging more frequent use or new occasions).
2. Product modification. Improve quality, features or style (new flavours, better packs, eco-friendly versions).
3. Marketing-mix modification. Change prices, add channels, run new campaigns, sales promotions and loyalty schemes.
4. Repositioning. Give the product a fresh image for a new generation of buyers.
5. Brand extension and new variants. Launch premium, value or travel-size versions to cover more needs and price points, as many snack and personal-care brands do.
6. Defending share. Match competitors' offers selectively and keep close relationships with dealers, so that shelf space is not lost during the most competitive stage.

With these steps, many products, such as well-known biscuit and soap brands, have stayed in maturity for decades.