The first thing we should know is what is the Life cycle of a productAs we know, cycles are made up of stages and each stage is different from the other, They are part of a process that, like any cycle, concludes.
The stages of this life cycle are divided into four
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Stages of the cycle
By seeing these stages we can deduce what each one refers to, but it is not as clear as it seems, so below we will present them in detail seen from a business point of view.
What is each stage of the life cycle of a product?
Stage 1: The introduction
This stage refers to initiation or “introduction” of a product on the market, in this first stage in many brands and products it is the most important, since the success of this will depend on "the first impression".
Some steps that are part of this stage are:
- El establish a trademark and patent; This is to guarantee the quality of the product in the face of the imminent competitive market, and to give the next buyer the security and confidence.
- Another point is the controversial price, there has always been two types of strategies at this point, offer low pricess to win market and consumers or, start with high prices to recover the investment to later lower their prices.
- Choose appropriate method for the best distribution of the productDistribution logistics is essential, the scope that the product will have will depend on this, it is important to consider choosing the types of distributors or stores that are suitable for the rotation of your product and the areas with the greatest commercial movement.
- And last of this stage, but not least, the first advertising and promotion that will announce your next product on the marketIt is advisable to do it in the busiest place, the internet. Internet is the most effective and economical medium for companies and products that are just beginning to make their way.
Step 2: Growth
This stage begins to be the most stable you will have in the whole Life cycle of a productAfter making great efforts to make way for your product in the market, you should start to change your strategies and movements, some steps you should take into account are:
- Start regulating your prices, Although previously you began to enter the large market and position yourself as a good option for customers with very accessible prices, it's time to start raising them a little but not too much, It is important find a middle ground between your profit and the consumer's profit. Otherwise, to use a strategy of high prices to recover the investment soon, you must lower them, this far from harming you will help you reach other types of consumers and increase all your sales, and you will begin to be more known than you currently are.
- Another important point is keep your quality that at the beginning you introduced, in the market so that your customers who have won up to this point do not give up to continue buying your product, you can add some extra service so that it becomes equally innovative for the consumers that you have already won from the beginning.
- Invest more in advertisingAlthough you have already started advertising your product in the production stage, you have to start with some changes, one of them is the investment, it is time to invest in other media such as advertising and make it smarter. You already know who your potential customers are and towards them you should go, focus your new marketing platforms on this population of consumers. For example, if your product is aimed at young people, you can start to focus on the platforms in which they can be used by this type of audience, such as social networks and look for an attractive, colorful, dynamic and short advertising, these points are what catch the attention of a young man who quickly views his social networks every 30 minutes. Find what really grabs your customers and exploit it.
- As previously mentioned, you marketing should be directed to all your potential customers, in which you have already verified their interest, but it is also important that you bet new public to increase your profits. As we already mentioned, you must add some service to your product that makes it more attractive, and that point complements this, implementing something new can attract an audience independent of the one you already have.
Step 3: The maturity
If your product has reached this point congratulations, has managed to reach the adult stage of the marketWe could say that it has already experienced a great trajectory in the market and that over the years it has remained stable in its sales. Many products at this point suffer from an imminent fall, but why? This is due to the fact that being positioned in the market and having established large sales numbers, the quality and marketing of the product is neglected. When you are at this stage, you will not only present this incident, you will also be able to present the following characteristics:
- The competition will be presented little by little and it is essential to stand out among them, you must implement new characteristics that define your product and brand, this means that you implement a flagship feature, so that the consumer can distinguish it from the others and continue choosing to buy your product and earn the loyalty of your customers. An example would be the physical characteristics of Apple products, distinctive characteristics that will always make us distinguish your products.
- As we already mentioned, this stage is one of the best, but also one of the most criticalSince, if you don't keep your product afloat, its next step will be its fall and disappearance from the market, and to stay latent in the competition there is an infallible and very intelligent strategy. Is strategy consists of lowering your prices compared to competitive productsThis will make you stand out among the consumer options and position yourself as number one in sales and preference. This will help you regain many clients that you have lost throughout this cycle, and you may even be able to earn some new ones.
- If you want to make your product more attractive you can start with the use of "promotions or discounts" a surefire way to boost your sales. You can too implement comparative advertising, where you compare your competition with your product and customers notice the benefits that you provide.
- Another important point is maintain a good relationship with distributors and stores, This will help you to continue to see you as a good option in your attempts, and not see new products as their options. This can be achieved through incentives.
Step 4: The decline
This is the final stage and worst of all. If you did not take care of each of the previous aspects, it is very likely that you find yourself in this ephemeral stage of red numbers and an inevitable drop in sales. At this point there is not much to do and you will find very difficult situations and you should start considering the following options:
- Leave the product on the market and start with its modification and redesign, reinvent your product and get him out of this horrible situation.
- Another option is to start lower cost and production pricesIn such a way that profits begin to increase and not losses, by making your product a little cheaper, you will be able to continue selling your product at a lower price, but with the same amount of profit.
- The last is the sale of the patent and rights to another companyIf you refuse to get here, you have one last option, to discontinue the product from the market, withdraw it for a while and reformulate it, analyze the negative and positive points and take them out again in the future.
What is the key to success?
If you don't want your product to go through the decline stage it is very important to focus on the first 3 stages, constant product and advertising innovation.
You implement market research and study your consumers in depth, Find out what they need or how they could improve your product, something that could certainly save you from future decline.
Y don't take the success of the product for granted, Most of the products that disappear from the market are due to that, neglecting the success of your product makes other brands surpass it. When you see that you begin to be in danger, it is time to take action, do not wait for the stage of decline.
Bet totally on advertising, there are thousands of ways to promote your products, different media and many strategies depending on the audience you want to reach, it is important to reinvent your advertising periodically so that consumer interest is not lost.
Choose the correct hours to launch your advertisement (hours in which you are sure that your average consumers will be able to see it), attractive colors, animations and dynamism. If you do not neglect anything that has been mentioned, your product will last on the market and rest assured that it will be a successful product.