Product Lifecycle

Note: Saturation refers to the highest point of maturity

Extension Strategies prevent products from going into decline. Some such strategies include:

• Finding new markets for existing products
• Developing a wider product range
• Creating a product towards a specific market
• Changing the appearance
• Increasing frequency of usage
• Changing the ingredients
• Updating designs

Advantages of Product Life Cycle:

• Shows the current level of sales and helps find future sales trends
• Will help pinpoint the timing and planning of extension strategies
• Useful for monitoring the impact of promotion on sales
• It will help identify where spending is required
• It will help identify which products can no longer be sold
• It can be used to understand the percentage of cost generated by the product

Disadvantages of Product Life Cycle:

• It might not help pinpoint the exact levels of future sales
• It fails to justify why sales are changing