The Product Life Cycle Strategy

Products go through the four stages of the product life cycle (PLC), and this therefore, requires that different promotional strategies be employed at the different PLC stages to ensure the product’s viability and eventual success.

Stages and promotion strategies employed are as follows (see Figure 10.7):

• Introduction – For a new product, the organisation’s primary objective will be to inform and educate the target audience of its entry and availability. Television, radio, magazines, coupons, cents-off deals, etc may be used to promote the product during this introduction stage of the PLC. (Push and Pull Strategies will be used at this critical stage).
• Growth – As the product gains market acceptance, the organisation at this stage of the lifecycle, works on the strategy of further consolidating and also increasing brand awareness to encourage loyalty.
• Maturity – Given the increased competition, the organisation employs persuasive tactics to push their product to consumers. Any differential advantage will be clearly communicated to the target audience to inform consumers of their benefit over their competitors.
• Decline – As the product reaches the decline stage, the organisation will rely on the strategy of reminding consumers of the product in an attempt to slow down the “inevitable”.

Figure 10.7: Promotion through PLC