Product Life Cycle

Each product class as a whole and an individual brand passes the fourth several stages form its birth to its final eclipse. When the new product is introduced in the market, the sales pick up slowly and the product comes to the notice of the customer due to heavy promotion. And then it is well-distributed. This is called the introductory stage. Later is the growth stage, where the sales rise quickly. The cost distribution and promotion is spread over a large volume is spread over a large volume, and so the cost per unit is low. It is a critical stage form the view-point of the product. The maturity stage is longer that other stages. The product can be revived at this stage by improving the product and by promotion. A new product mix can be thought of. The product may be eliminated or redesigned. Revival of PLC (product life cycle) extends the life of the product, by starting the stages once again from introduction onwards. The decline stage could be a result of changing consumptions patterns, improved technology, and availability of better substitutes. The profits take a dip, and the product might die. It can be eliminated prior to that. Or else, its price has to be slashed. But it is also ticklish to reduce the price, when extra promotional effort is needed to jack up the sales.