Stages of stock Lifecycle

Product Lifecycle shows the path of a typical new product which takes from its inception to its discontinuation. product life cycle refers to the period from the product first begin into the shop until its final withdrawal. The comprehension of a product life cycle of a product can help a company to understand and to make decisions like, what is the right time to introduce the product, how to plan marketing activities and what price has to be fixed.

We see advertisements regularly, telling about discrete new features of existing products: a branded shampoo with new flavour, chips with new flavour and snacks with new yummy fruit flavour.

Case For Ipad

But if you go to sell shop you can see thousands of products which are not advertised on regular basis. Some product needs marketing plan and promotional methods. But why do some products apparently sell themselves? write back is that the marketers are continuously acting according to where the item is in its lifecycle.

Stages of stock Lifecycle

Progressive organisations try to remain aware of what is happening throughout the life of the product in terms of the sales and the resultant profits.

A new product improve straight through dissimilar stages:

1. Introduction: This is the first stage, where there is huge number of venture by companies, with puny or no profits and we commonly see a slow growth in sales. Price may be too high or high-priced at this stage. Introduction stage requires advertisement. Advertisement helps in increasing sales and to build brand name.

2. Growth: In case the product begin is successful, the sales must start picking up or rise more rapidly.

Sometimes price may reduce a puny as new competitors enter the market. Sales would climb up fast and behalf photo will also improve considerably. For example, iPods were introduced in 2001. Currently iPod finds itself in growth stage of its product life cycle. It shows steady growth rate. Most of the electronic items are in this stage.

3. Maturity: In this stage, competition gets started and competitor drops the price accordingly to attract the market. A competitive price strategy is beneficial in this stage. This is the longest phase for most of the products. Sales grow at a decreasing rate and then stabilize. Sometimes manufacturers leave the shop for low growth and fewer behalf margins.

4. Decline: The distribution cost and promotion is now spread over a larger volume of sales. As the volume of yield is increased the manufacturing cost per unit tends to decline. Profits, as expected, continue to erode while this stage with puny hope of recovery. Typewriters are in the decline stage of the product life cycle.

Product life cycle helps in best decisions production process on wage and cost, within a single stage. It helps marketing managers to make best decisions on pricing aspects.

Stages of stock Lifecycle