There is a strong relationship between the product adoption process and the product life cycle. Both consider new to the world products – the product adoption process considers the “stage” that the consumer is in relative to the product – whereas the product life cycle model will track sales (and indicate distinct market conditions), depending […]

Underpinning the pattern of sales in the product life cycle is how consumers adopt new products. Not all new products are successful, indeed, most new products will fail. For example, even Apple has its fair share of failed products.As we know, the product life cycle moves through four distinct phases of introduction, growth, maturity and

The PLC model can be utilized for portfolio analysis Do we have an appropriate balance of existing products in a mature market, and are we investing in future new product opportunities by entering products into introduction and growth stage markets? Again, this is conceptually similar to the underlying principle of the Boston Consulting Group matrix

A more limited competitor setIt is likely, in the introduction phase of the product life cycle, that there are limited numbers of competitors. At this stage of the PLC, the level of sales and profits in the market are quite small – which is unlikely to attract a large number of new entrants.While having a

Key marketing challenges in the introduction phaseOne of the key marketing challenges in the introduction phase of the product life cycle (PLC) is to clearly communicate the advantages and benefits of the new product offering, relative to existing products in the marketplace. This requires a significant and targeted communications program – typically targeting consumer innovators.As

Well-managed Product PortfoliosHaving survived the significant competitive battle of the growth stage, firms are looking for stability and ongoing profitability and to leverage their “cash cows”. It is also likely, in most well-managed firms, that they have now/since entered other markets and have new products in the introduction phase and growth phases as well. This

In the growth stage of the PLC there is a limited degree of customer loyalty. This is because most customers are “first-time consumers” and have no direct experience purchasing the product.This means that in a growth market, it is common to see the competitors try to obtain as much market share as possible during the

Growth phase follows the introduction phaseThe growth phase follows a successful introduction stage. There is no guarantee that a new product will be successful – therefore, not all new products will have a growth phase.However, provided that the firm has been successful in reaching innovators in the market, and the product has some advantages over

Product reinvention to trigger a new growth phaseIn a mature market, potentially entering the decline stage of the product life cycle, larger firms may be in a position to try and rethink the overall positioning of a product in order to try and broaden its market or to create new usage or opportunities for silence.In

Following the maturity stage of the PLC, many products at some point will enter the decline stage. The decline stage is a significant reduction in sales volumes. Typically this occurs for two main reasons:There is a new product category in the market that provides a better solution and has provided enough incentive for consumers to