Member Louise Choy Louise Choy Alex Yau Alex Yau Eddie Tung Eddie Tung

Product Life Cycle Definition Definition 5 stages 5 stages Product develop Product develop Introduction Introduction Growth Growth Maturity Maturity decline decline

PLC Time Product Development Stage Introduction Profits Sales GrowthMaturityDecline Losses/ Investments ($) Sales and Profits ($) Sales and Profits Over the Product  Life From Inception to Demise

Product Development Stage Find and develop new product idea Find and develop new product idea Sales = 0 Sales = 0 Investment Cost Investment Cost

Introduction Stage Product introduced to market Product introduced to market Low sales Low sales No profit (heavy expense) No profit (heavy expense) Create product awareness and trial Create product awareness and trial

Growth Stage Rapid market acceptance Rapid market acceptance Profit increase Profit increase Sales increase rapidly Sales increase rapidly Maximize market share Maximize market share

Maturity Stage Sales growth slow down Sales growth slow down Profit level off or decline Profit level off or decline against competition against competition Maximize profit while defend market share Maximize profit while defend market share

Decline Stage Sales drop off Sales drop off profit drop profit drop

Real Life Example Broadband network Broadband network Mobile phone Mobile phone Pager Pager

Broadband Network Introduction stage Introduction stage Build product awareness Build product awareness

Broadband Network Use heavy sales promotion & advertisement Use heavy sales promotion & advertisement attract more new customers attract more new customers Building and retaining market leadership Building and retaining market leadership

Mobile phone Early 1990s: growth Early 1990s: growth Late 1990s to now: maturity Late 1990s to now: maturity

Mobile phone Diversity brand and models Diversity brand and models Price to match or best competitors Price to match or best competitors eg, cut price eg, cut price improve the quality improve the quality

Mobile phone Use attractive advertisement Use attractive advertisement stress brand differences & benefits stress brand differences & benefits specific imaging specific imaging Adding new function & services Adding new function & services

Pager 1980s to early 1990s: growth and maturity stage 1980s to early 1990s: growth and maturity stage Many pager companies in the market Many pager companies in the market Some new models of pager are introduced Some new models of pager are introduced

Pager Decline stage now Decline stage now Started when mobile phone became popular Started when mobile phone became popular Many bad-established companies closed down Many bad-established companies closed down

Pager

Pager Add more functions of the pager Add more functions of the pager to attract more people use pager again to attract more people use pager again eg, horse-racing information, stock market information eg, horse-racing information, stock market information Co-operate with some other company Co-operate with some other company

Sport Shoe Exception case: decline -  rebirth Exception case: decline -  rebirth New fashion trend: New fashion trend: Low-tech sport shoe is more preferable than high-tech sport shoe. Fashions are short lived, but often return in a long term cycle. Fashions are short lived, but often return in a long term cycle.

PLC Well preparation in introduction stage??? Well preparation in introduction stage??? Maintain longer growth and maturity stage??? Maintain longer growth and maturity stage??? Avoid the product enter the decline stage so quick??? Avoid the product enter the decline stage so quick???