(i) Maturity Stage: Dining this stage, sales continue to grow but at a decreasing rate. Competition increases further and markets get stabilised. The product is known all over the market and a third level market (low income group) may emerge. Due to competition prices are reduced but promotional expenditure remains high. As a result profits decline and marginal producers are forced to go out of the market. Manufacturers broaden their lines and new models of the product are introduced. Supply exceeds demand for the first time. After some time there is saturation in the market. There is no possibility of increase in sales and the sales curve is levelling off. For products with long-run demand, maturity stage may last for a long period. But sooner or later product demand starts declining as new products we introduced in the market. Thus, this stage is characterised by product differentiation, product improvement and identification of new market segments.
The maturity stage may be lengthened by using the following strategies :
1. Differentiating the product from competitive products.
2. Focussing on brand image.
3. Extending the warranty period, e.g., life time warranty for typewriters.
4. Introducing reusable packaging.
5. Developing new markets.
(i) Finding new uses of the product.
(ii) Decline Stage : This stage is characterised by either the product’s gradual displacement by new and superior products or change in consumer’s buying behaviour. Sales fall down sharply and promotional expenditure has to be reduced drastically to minimise loss. The emphasis is on efficient distribution at lowest cost. Unless new uses of the product are found the sales may decline rapidly and the product may soon go out of the market.
The following strategies may be used to avoid sharp decline in sales :
1. New features may be added to the product.
2. Economy models of packs may be introduced to revive the market.
3. New and attractive packaging may be used to attract customers.
4. Selective promotion may be adopted to reduce distribution costs.
Stages in product life cycle
