How to ascertain at which stage of life cycle is your product??

How to ascertain at which stage of life cycle is your product??

Like we Human beings, the products also have a life cycle.  Sales and profit of a product will be according to its life cycle.  Also, marketing cost has to be planned according to the stage of the life cycle.  Let us see the stages of the product lifecycle:

Introduction stage:

When a product is introduced in the market, the buyer will not be confident about its quality or features.  Hence more promotion is needed in such a way to increase the curiosity amongst buyers.  The prices have to be naturally kept low and introductory offers and freebies are needed to promote the sale.

Growth stage:  Once the product gets acceptance and gains confidence the buyer will choose to repurchase and use more and more.  For example initially when cryptocurrency trading has introduced the investors were reluctant to try.  Now that everyone realizes the profit-making potential of cryptocurrency trading there is an increase in the usage of apps like Qprofit.

 

Maturity stage:

If the sale of your product grows at a diminishing rate, it has reached the maturity stage.  At this stage beware of competitors entering with similar products.   Keep the promotion efforts highlighting the unique features of your product.  Ensure a distinctive package of the product and use a competitive pricing strategy.

 

Decline stage:

In the decline stage, if your business has sufficient funds, invest in research and start upgrading the features of your product.

If that is not possible, it is better to stop incurring further costs on production and marketing.  You can opt to discontinue this and concentrate on your other products.

In this stage, much the sales and profit will clearly decline.  Hence any of the above ‘stop-loss’ initiatives have to be critically made.  Any delay in such decision will even result in winding up of your business.

At times high inventory balance may force you to produce further.  Be alert and avoid such unwise decisions.  It is better to liquidate the inventory as such and concentrate on other lines of the business.

Please note that just like introduction and growth, decline stage is also inevitable.  It is prudent to accept this stage and try to make timely decisions to move on profitably.

Sometimes when your business offers multiple products, each product may be in a different stage of life cycle.  Hence uniform price and marketing strategy does not work for all the products.

Taking into above all the above factors, plan your business accordingly.