product_life_cycle - Study Is My Buddy 2014

Report
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Product Life Cycle
Stage 6 Business Studies
Marketing
Ms Giveen 2010
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4 Stages

Introduction,

Growth

Maturity

Decline.
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Introduction

Until people get to know the product, sales will grow slowly.

Heavy promotion and the costs of development often mean
negative profits.

Higher prices can be charged until competitors enter the
market.
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Growth

The heavy promotion pays off and sales grow rapidly.

It is very profitable because prices are high.

The profits attract competitors.
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Maturity

Sales level off.

Only occasional advertising is needed to promote the
product.

A typical example is a product such as Weet-Bix.
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Decline

Sales are falling and there is little purpose in fighting the
trend.

Heavy discounting is used to get rid of stock.
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How does this apply to your
assignment?
1.
Decide if you want to stay in the same business. Do you
want to keep family portraits?
2.
If yes – then decide how to refresh and move back a stage
3.
If no – then decide what entry point you are going to come
into the market on

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