P RODUCT L IFE C YCLE Mohammad Shamsur Rahman Lecturer Department of Fisheries Faculty of Biological Sciences University of Dhaka Fisheries Marketing(AF-408)

What is product life cycle? Life cycle stages Management strategies in different life cycle stages Product life cycle…. MAJOR HEADS

What is product life cycle? Every product has a life cycle Definition: A marketing theory in which products or brands follow a sequence of stages including : introduction, growth, maturity, and sales decline. Product life cycle….

Four things in mind 1) products have a limited life 2) sales has distinct stages- with challenges, opportunities, problems 3) profits rise and fall at stages 4) products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage Product life cycle….

Pre Introduction stage: Product development stage Stage-1:Market introduction stage Stage-2: Growth stage Stage-3: Mature stage Stage-4: Saturation and decline stage Life cycle stages Product life cycle….

Figure: Product life cycle stages Product life cycle….

INTRODUCTIONGROWTHMATURITYDECLINE Third generation mobile phones Portable DVD Players Personal Computers Typewriters E-conferencing Faxes Handwritten letters All-in-one racing skin-suits Breathable synthetic fabrics Cotton t-shirtsShell Suits iris-based personal identity cards Smart cardsCredit cards Cheque books EXAMPLES: Product life cycle….

Management strategies in each life cycle stages Product life cycle….

cost high sales volume low no/little competition - competitive manufacturers watch for acceptance/segment growth losses demand has to be created customers have to be prompted to try the product Stage-1:Market introduction stage Product life cycle….

costs reduced due to economies of scale sales volume increases significantly profitability public awareness competition begins to increase with a few new players in establishing market prices to maximize market share Product life cycle…. Stage-2: Growth stage

no need for publicity sales volume peaks increase in competitive offerings prices tend to drop due to the proliferation of competing products brand differentiation, feature diversification Industrial profits go down Stage-3: Mature stage Product life cycle….

costs become counter-optimal sales volume decline or stabilize prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales Stage-4: Saturation and decline stage Product life cycle….

? Q & A Product life cycle….