PRODUCT LIFE CYCLE

INTRODUCTION

Costs are high (but makes little profit)

Slow sales (demand must be created)

Very little competition

Makes little money at this stage

I-Phone 5

100% Mineral Make-Up

BB Playbook

Olay Anti-Aging Pro

Conor Maynard

Songza Application

GROWTH

Costs reduced (but still expensive)

Sales increase

Profitability begins to rise

Consumers become more aware

Competition increases

Kindle

Fold-Over Boots

Lulu Attire

One Direction

Modern Family

Hunger Games

Angry Birds

MATURITY

Costs are lowered because of curve effects and competition

Consumer demand is at its maximum

A lot of competition

Differentiation in branding and the product itself (new versions, etc.)

Under Armour

Lady Gaga

Smart Cars Wii

Twilight

Longboards

I-Pod Chromatic &

Touch

DECLINE

Costs become “counter-optimal”

Consumer demand declines

Distribution becomes a hassle and difficulty

Crocs

Paperback Books

VCR

MSN Messenger

Myspace

Webkinz

Jonas Brothers

DECISION POINT

Product termination is determined

Jersey Shore

Tamagotchis

Ke$ha

Walkie-Talkies

Neopets Virtual Pets

Perms