Product and Brand Management

Understanding Product Life Cycle for Effective Market Share Strategy

by | Feb 14, 2022

The product life cycle is a model that describes the stages a product goes through from its introduction to decline. There are four stages of the product life cycle: introduction, growth, maturity, and decline.

  • Introduction: In this stage, the product is launched in the market, and sales are low. The company has to invest heavily in advertising and promotion to create awareness among customers.
  • Growth: In the growth stage, sales increase rapidly as the product gains acceptance among customers. The company has to focus on improving the product and expanding its distribution network.
  • Maturity: The maturity stage is characterized by a slowdown in sales growth. The competition increases, and the company has to focus on maintaining market share and differentiating the product from competitors.
  • Decline: In the decline stage, sales start to decrease as the product reaches the end of its life cycle. The company has to decide whether to discontinue the product or try to revive sales through rebranding or other strategies.

How Product Life Cycle Aids Market Share Strategy

The product life cycle can be used as a guideline for developing effective market share strategies. Each stage of the product life cycle requires a different strategy to maintain or increase market share. Here’s how:

  • Introduction: In the introduction stage, the company has to focus on creating awareness among customers. This can be done through advertising and promotion. The company may also offer introductory discounts or other incentives to encourage customers to try the product.
  • Growth: In the growth stage, the company has to focus on expanding the product’s distribution network and improving the product. This can be done by introducing new features or variants of the product. The company can also focus on building brand loyalty among customers.
  • Maturity: In the maturity stage, the competition increases, and the company has to focus on maintaining market share and differentiating the product from competitors. This can be done by improving the product’s quality, reducing the price, or offering better customer service.
  • Decline: In the decline stage, the company has to decide whether to discontinue the product or try to revive sales through rebranding or other strategies. If the product is to be discontinued, the company can focus on phasing it out gradually while introducing new products to replace it.

Conclusion

The product life cycle is a powerful marketing concept that can help businesses develop effective market share strategies. By understanding the different stages of the product life cycle and the strategies that are required at each stage, businesses can maximize their profits and maintain or increase market share.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

We are sorry that this post was not useful for you! 😔

Let us improve this post!

Tell us how we can improve this post?

0 Comments

Submit a Comment

Your email address will not be published. Required fields are marked *

Product and Brand Management

1 Product Management Basic Concepts

  1. Product Management – Meaning and Scope
  2. Product Management: An Overview
  3. What is a Product?
  4. Product Classification, Differentiation
  5. Product and Brand Relationships, Product and Brand Systems
  6. Product Planning
  7. Role and Responsibilities of a Product Manager

2 Product Life Cycle (PLC)

  1. Product Life cycles Implications of Product life cycle
  2. Product Life Cycle (PLC) an aid to Product Planning
  3. Operationalising the Product Life Cycle
  4. Product Life Cycle as a Guideline for Marketing Strategy
  5. Product Life Cycle as a Guideline for framing Market Share Strategy
  6. Summary of PLC Objectives, Characteristics and Strategies
  7. Evidence and Critique for the Life Cycle Concept
  8. The Diffusion of Innovation Theory – A Parallel theory

3 Product Line Decisions

  1. Product Line Analysis
  2. Product Line Extension
  3. The Disadvantages of Line Extension
  4. Factors Influencing Product Line Decisions
  5. Category Factors Influencing Product Line Decisions

4 Product Portfolio

  1. The Portfolio Concept
  2. The Logic of Portfolio Approach
  3. Types of Display Matrices
  4. The BCG Growth-Share Matrix
  5. GE’s Strategic Business Planning Grid
  6. Shell’s Directional Policy Matrix
  7. PIMS Model
  8. Arthur D Little Co. Matrix Model
  9. Hofer’s Market Evolution
  10. Utility of Display Matrices

5 Organizing for New Product Development

  1. Setting Responsibility for New Product Development
  2. Structural Units for New Product Development
  3. Function of the New Product Development Units

6 Generation, Screening and Development of New Product Ideas

  1. Innovation and the New Product Development Process
  2. Generation of New Product Ideas
  3. Sources of New Product Ideas
  4. Methods of Generating New Product Ideas
  5. Screening of New Product Ideas
  6. Criteria for Screening New Product Ideas
  7. Development of New Product Ideas

7 Concept Development Testing and Physical Development of the Product

  1. Introduction to Concept Development
  2. New Product Development
  3. Business plan: A tool to fetch financial assistance for new product development program

8 New Product Launch

  1. Types of New Products
  2. New Product Launch the Marketing Plan
  3. Defining and Selecting the Target Market
  4. Product Strategy and Positioning
  5. Pricing the New Product
  6. Promotion of the New Product

9 Branding Concepts and Evolution

  1. Branding
  2. Strategic Relevance of Branding
  3. Branding Policy Decisions
  4. Brand Name
  5. Brand Name Selection Process
  6. How to Build a Brand?
  7. Brand Image
  8. Branding of Commodities

10 Brand Equity

  1. The Concept of Brand Equity
  2. Measurements of Brand Equity
  3. Composite Measure of Brand Equity
  4. Customer Based Brand Equity
  5. How Brand Equity is created?
  6. Building Brand Equity

11 Brand Building Blocks: Identify, Image and Positioning

  1. Introduction to Brand Building
  2. Brand Building Blocks

12 Brand Architecture and Brand Extension

  1. Developing a Brand architecture strategy
  2. Brand Architecture guidelines
  3. Brand Portfolios
  4. Rationalizing the Brand Portfolio
  5. Brand Hierarchies
  6. Levels of Brand Hierarchy
  7. Brand Hierarchy Decisions
  8. Corporate Branding
  9. Brand Extensions
  10. Types of Brand Extension
  11. Advantages and Disadvantages of Brand Extension
  12. Launching a Brand Extension

13 Enhancing Brand Equity

  1. Brand foundation-authenticity and believability

14 Managing Brands Over Time and Across Geographies

  1. Expanding to International Markets
  2. Global Marketing: Standardized vs Customized Approach
  3. Planning the Global Marketing Strategy
  4. Factors Impacting Customization
  5. Developing the Global Branding Strategy
  6. Managing Brands Over Time
  7. Levers for Sustaining Brand Value
  8. Augmenting the Brand Offering
  9. The Pricing and Distribution Levers
  10. The Communication Lever

15 Measuring Brand Equity

  1. Measuring Elements of Brand Equity
  2. Frameworks for Brand Equity Measurement
  3. Brand Report Card
  4. Need for Brand Valuation
  5. Methods of Brand Valuation