The product life cycle with a diagram, and marketing strategies in the maturity stage

The product life cycle

The product life cycle (PLC) is the pattern of sales and profits of a product over its life. It usually has four stages:

1. Introduction: the product is launched; sales grow slowly; heavy spending on promotion and distribution; losses or low profits.
2. Growth: sales rise rapidly; new competitors enter; profits increase.
3. Maturity: sales growth slows and sales peak; competition is intense; profits stabilise and then fall.
4. Decline: sales and profits fall because of new technology, changing tastes or substitutes.

Diagram

 Sales
   ^
   |.-----------.
   |.-'             '-.
   |.-'                   '-.
   |.-'                         '-.
   |      _.--'                               '-.
   |___.-'                                       '--.
   +---------------------------------------------------> Time
   | Introduction | Growth  |     Maturity     | Decline |

The curve rises slowly in introduction, steeply in growth, flattens at the top in maturity and falls in decline. Profits follow a different curve: negative in introduction, rising sharply in growth, peaking in late growth or early maturity, and falling before sales do, because competition forces prices down and promotion costs up.

Strategies in the maturity stage

Maturity normally lasts longest, and most products in the market are in it. The marketer tries to extend it and defend share:

1. Market modification. Find new users and segments (a children's health drink promoted to adults), enter new geographic markets such as rural areas or exports, and encourage more frequent use or new uses (an ice-cream brand promoted for winter festivities).
2. Product modification. Improve quality and performance, add new features, flavours and variants, or refresh the style and packaging (a soap brand relaunched with new fragrances and an improved formula).
3. Marketing-mix modification. Adjust price (offers, value packs), add channels (e-commerce, modern trade), increase or refresh advertising, use sales promotion, and improve service and credit.
4. Repositioning and brand extension. Give the product a fresh image or extend the brand into related products to keep it relevant.
5. Defensive actions. Strengthen dealer relationships and loyalty programmes to protect shelf space and customers from competitors.

Example: a well-known glucose biscuit brand has remained in maturity for decades through larger and smaller packs, new variants, nationwide rural distribution and steady reminder advertising. The choice among these strategies depends on whether the sales slowdown comes from market saturation, from competition or from changing tastes.