Brand Management
The Product Life Cycle
To effectively market a brand, marketers must know where the brand is in terms of the
product life cycle. The traditional product life cycle consists of:




Product introduction
Growth
Maturity
Decline
Maturity
Growth
Decline
Introduction

Product Introduction
o The introduction stage is when a product or service first appears in the
marketplace. If the product or service is successful at this stage it will show a
profit and its sales will increase. There is little or no competition during this
stage because the product is a new idea.

Growth
o As it begins to establish a presence in the marketplace, the product or service is
in a growth stage. Some competitors move in at this point, and the company
needs to be aware of the competition. They can emphasize the uniqueness of the
product, reduce prices, or increase the advertising and sales promotion to hold
onto or increase their market share.

Maturity
o The maturity stage occurs when a product or service has reached its peak of
popularity and has established itself in the marketplace. Competition is at its
peak at this stage. Promotion and advertising campaigns need to be in full gear.

Decline
o When sales begin to drop off, a product or service is considered to be in its
decline stage. Many competitors have already left the scene. It is at this point
that the company must decide whether to abandon the product entirely or modify
it to meet new demands in the market. Modification would move the product or
service to a different stage in the life cycle.
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Entrepreneurship – Nelson, 2nd Edition, 2001
Non-Traditional Product Life Cycles
Fads

A fad is a product that is extremely popular for a very short period of time. Fads that have
occurred over the past few years are:
o Pet Rocks, Cabbage Patch Kids, Tickle Me Elmo, Mood Rings, Hula Hoops
Companies can make or lose a great deal of money on fads. If a business can sell most of its stock
and get out of the market for this product just before it reaches its peak, the business will make an
excellent profit. When a fad dies, it dies with very quickly, and many businesses get caught with a
large product inventory that no one wants to buy.

Sales
Time
Niches

Some products have a very short growth stage that leads to a solid, but not financially spectacular,
maturity stage. These products have a niche – a section of the market in which they dominate and
into which very few competitors enter. Niche marketers usually invent their products and hold
exclusive patents or formulas.
o Specialized parts
Sales
Time
Seasonal


Seasonal products are products that are popular during the particular season.
o Christmas trees, Chocolate Easter Bunnies
Businesses must keep adequate inventory to meet seasonal demand. But have to get rid of it by the
end of the season. If they have too much inventory left over at the end of the season, many of the
products will be out of style when the season starts again the next year. This balancing of product
quantity with sales is called inventory management.
Sales
Time
D:\533571539.doc
Entrepreneurship – Nelson, 2nd Edition, 2001