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4stagesofProductlifecycle.docxFour Stages of Product Life Cycle
Each and every product and service have certain period of life that is also known as the product life cycle. The product life cycle is the specific period from the birth and introduction as first time launching the product into the market to until the complete withdrawal from the market. This life cycle is divided into different stages that are call stages of the product life cycle (DRN Sharma, 2013).
Product life cycles describes the way products’ sales revenue behaves over time. Generally, the product life cycle is divided into four stages; introduction, growth, maturity and decline. The introduction stage of product life cycle is introduction of new product. Growth stage is products acceptance and rapid sales growth. Maturity stage is sales’ growth at peak level and highest product acceptance by potential buyers. While the decline stage is declined sales as the product replaced by other products or discontinued in the market (J Jeong, 2010).
Stages of product life cycle is best basic variable to determine business strategy. According to Michael Porter (1980, p. 157) product life cycle is grandfather concept to predict course of industry evolution. The product life cycle concept is based on biological analogy as birth (introduction), growth, maturity and decline. The stages of product life cycle are systematic framework to explain market dynamics (D Gardner, 1987).
Introductory
First stage of product life cycle is introduction or introductory, it is birth of a new product. In the introduction stage, the product is new and not so much popular even a larger population of targeted customer do not know about the product; that’s why, it does not make as much profit as much deemed. Another factor to make low or no profit in introduction stage is marketing cost to test the market and distribution of the product in the market (DRN Sharma, 2013).
The new product takes some time to start selling as creating awareness and familiarity of the product in the market also takes some time. That’s why the product shows slow and gradual growth in the market. It would need heavy investment to promote the new product if the target market is large having potential competitors’ products (DRN Sharma, 2013).
Growth
As the product is introduced in the market and get known in the market, the growth stage of product life cycle starts. In the growth stage the product starts making profit as a result of increased sales. In this stage, the product starts building brand image with some marketing costs (DRN Sharma, 2013).
The increased and higher demands of the product create growth stage of the product life cycle. The growth stage also requires increased promotions of the product as competition increased among competitor’s products. Here, companies and competitor make necessary arraignments for the 4 Ps of marketing. In the growth stage the product needs to add some value-added features and innovations to accelerate the profit and market share (DRN Sharma, 2013).
Maturity
As the product grow fast, the competitors enter into the market according to market value and how much market is attractive for product and competitors. Competitors bring same products in the market. It results start of declining the product depicts maturity stage. Sales continues to increase even with decreasing profit rate and stable due to price competition. Maturity stage is peak stage for the product where companies tried well to maintain their maturity stage and market share (DRN Sharma, 2013).
Maturity stage is levelling off sales and start of decreasing profit margin due to strong competition in the market. It might be due to competitors’ strong advertisement and promotion of the product (DRN Sharma, 2013).
Decline
In the maturity stage, the competition gets very intense. The competitors try to get competitive advantage over each other. It becomes hard to maintain maturity stage and ultimately the profit gradually starts declining. It is start of the declining stage of product life cycle. Every company tries to manage it. The companies have only few choices like time most out of the product before declined and exit or they use marketing mix strategies to expand the market and extend the product life (DRN Sharma, 2013).
The decline stage where sales starts to decrease needs to take and made some serious marketing decisions to avoid this situation. The product’s life cycle can be extended through changing product’s attributes, adding some new attractive features and packages, repositioning and packaging the product with other products. Otherwise, it may result deletion or withdrawing the product as it would decline and leave generating the profit (DRN Sharma, 2013).
Different marketing strategies act different in different stages of the product life cycle as follows.
Product marketing strategy offers a basic product in introductory stage. Product marketing strategy offers service, extension and warranties in growth stage of the product life cycle. Product marketing strategy diversifies product brand and models in the maturity stage. While product marketing strategy phases out the weak items or products in the decline stage of the product life cycle.
Price marketing strategy uses cost plus in introduction stage, price to penetrate into the market in growth stage and price to match or defeat competitors in the maturity stage. While the price marketing strategy cut price in decline stage.
Distribution marketing strategy builds selective distributions in introductory stage and builds intensive distributions in growth stage. Distribution marketing strategy builds more intensive distributions during the maturity stage, while it goes for selection of distribution and phases out the unprofitable outlets in the decline stage.
Advertising marketing strategy builds awareness of the product among initial and early adopters and dealers in introduction stage. It builds awareness and interest in mass market in growth stage. Advertising marketing strategy stresses brand differences and their benefits in maturity stage while it reduces to level needs of hard-core loyal customers to retain in the decline stage.
Sales promotion marketing strategy uses higher sales promotions for the attractive trials of the product in introduction stage. It reduces sales promotion to take advantages of higher demands of the product in the market in growth stage. Sales promotion marketing strategy increases sales promotion to encourage brand switching in maturity stage. While it reduces sales promotion to the minimal level in the decline stage.
Uniqlo closely followed large-scaled multinationals’ combination strategy to adopt globalization strategy for internationalized the company and its products. According to globalization strategy, the company’s products are in lined with home country but the mother country holds the strict controls over product development. Uniqlo established directly controlled stores in different cities and boosted the products’ awareness among the target market and customer (N Wang, 2018).
Uniqlo’s product positioning strategy is preparing almost 70% of its brand fashioned clothing and remaining portion is for the seasonal and occasional fashioned products. Uniqlo produces high quality inexpensive products. Uniqlo has vertically integrated SPA business model to collectively integrate the development of the products, its designing, manufacturing, logistics and sales (N Wang, 2018).
Uniqlo strengths are its higher quality fashioned products, brand image, distinct brand positioning and customer’s trust and loyalty. Uniqlo’s weaknesses are imbalance between online and off-line shopping, consumer conflicts and supply chain management issues. Globalization, product transformation, e-commerce, government supports, online shopping and favorable conditions are opportunities for Uniqlo (W Li, 2020)
Uniqlo applies an integrated marketing mix and marketing integration strategy. Uniqlo’s marketing mix and integrated marketing strategy is briefly presenting in ensuing paragraphs.
Uniqlo’s product strategy is launching new quality products at the same time to take cost advantages. It aims to provide an improved product exposure to target market that influences product expansion and quality product as their brand image.
Uniqlo’s price strategy is comparable prices of the product with higher quality. Uniqlo offers same prices for online and offline shopping. It has maintained a consumer’s perception to products’ prices. Offering unified prices reduces customers’ obstacles to buy the product.
Uniqlo’s promotion marketing strategy is offering promotional coupons, packages and staggered promotions attract new customers and retain their loyal customers. Uniqlo’s place marketing mix strategy stick to direct online and physical stores product placement. Uniqlo’s service quality promotes and creates customer’s loyalty and brand image. Uniqlo offers value-added services either physical or online shopping. It realizes consumer’s transformation by providing value-added services and price control.
References
W Li (2020). On Marketing Strategies of Uniqlo: An Analysis of Online and Offline Integration. https://www.researchgate.net/publication/347713701_On_Marketing_Strategies_of_Uniqlo_An_Analysis_of_Online_and_Offline_Integration
DR. N Sharma (2013). MARKETING STRATEGY ON DIFFERENT STAGES PLC AND ITS MARKETING IMPLICATIONS ON FMCG PRODUCTS. ISSN 2277- 3622 Vol.2, No. 3. http://indianresearchjournals.com/pdf/ijmfsmr/2013/march/12.pdf
J Jeong (2010), Stages of the Product Life Cycle. https://doi.org/10.1002/9781444316568.wiem01052. https://onlinelibrary.wiley.com/doi/abs/10.1002/9781444316568.wiem01052
D Gardner (1987). The Product Life Cycle: It's Role in Marketing Strategy. Vol. 41, pp. 219-231. https://www.jstor.org/stable/24179183
N Wang (2018). An Analysis of Uniqlo’s Management Philosophy and Its Enlightenment to China’s Fast Fashion Brand. https://www.researchgate.net/publication/324291452_An_Analysis_of_Uniqlo's_Management_Philosophy_and_Its_Enlightenment_to_China's_Fast_Fashion_Brands
EK Choi (2011). The rise of Uniqlo: leading paradigm change in fashion business and distribution in Japan. https://mail.google.com/mail/u/0/#inbox/FMfcgzGlkFxSzPBWhDZGcJLQqkZTwjWT
N Wang (2018). An Analysis of Uniqlo’s Management Philosophy and Its Enlightenment to China’s Fast Fashion Brands. https://www.scirp.org/journal/paperinformation.aspx?paperid=83601
T Kimura (2021). Unique Fashion Not: Uniqlo’s Commercial Success in Taiwan. https://www.tandfonline.com/doi/abs/10.1080/1362704X.2021.1951428
H Woo (2014). Asian apparel brands’ Internationalization: the application of theories to the cases of Giordano and Uniqlo. Available at: https://fashionandtextiles.springeropen.com/articles/10.1186/s40691-014-0004-7
M Mirza (2020). The Key Success Factors: A Case Study of UNIQLO.
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