Sample Essay

The product life cycle of a certain brand is very important and essential strategic measures are based on the product life cycle of a certain brand. The product life cycle is usually based on a biological life cycle and as far as a certain brand is considered there are certain stages that are associated with the product life cycle[1]. The products that enter into a product life cycle are actually promoted to create the awareness of a brand. If the product has no or few competitors then in this scenario a market skimming price strategy is employed to the brand[2]. However, each product follows a penetration strategy or a skimming approach and enters the product life cycle. There are certain stages of a product life cycle and these stages are discussed below:

Growth: Similar offerings are offered to the customers and in this scenario the competitors are attracted into the market. In this phase the products are more profitable and organizations usually engage themselves in alliances, joint ventures and they usually take each other over. In this phase the expenditure of advertising is usually very high and the core principles of brand building are applied in this scenario. The market share usually tends to stabilize in this phase[3].

Maturity: This is usually considered as the longest phase and the products that usually survive the earlier stage are placed at a longer period in this phase.  The sales of the organization usually grow at a decreasing rate and then they actually stabilize after a certain period of time. The differentiating elements of the products and brands are key attribute of this phase. In the similar manner the price wars and intense competitions actually occurs in this phase. The producers are leaving the market because of the poor margins[4]. Different communication mediums are used in this phase and the market is actually growing.

Decline: A downturn actually enters in the market and this downturn sometimes affects the well being of the brand. The downturn in the market actually occurs because consumer tastes have changed or innovation occurs in the market. In this phase intense price cutting takes place and many products are wiped away from the market[5]. In this stage usually the phenomenon of cost cutting takes place and the marketing costs are reduced.

 


[1] K. Keller, Strategic Brand Management, 3rd Edn, Prentice Hall of India, New Delhi, 2007.

[2] P. Kotler, G. Armstrong, Principles of Marketing, 12th Edn, Prentice Hall, New Jersey, 2007.

[3] M. Grieves, Product Lifecycle Management: Driving the Next Generation of Lean Thinking, McGraw-Hill, 2005.

[4] M. Grieves, 2005.

[5] M. Grieves, 2005

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