Lesson #1: Product Life

Cycle
Two types of product life cycles:

● #1: TRADITIONAL
● #2: NON-TRADITIONAL
 Maturity TRADITIONAL
Growth
-sales increase
-more revenue
PRODUCT LIFE CYCLE
-development of
the product
-profits
-success or failure
-market share Decline
-barriers -don’t make new products
-low end product - may remove the product
Sales

Introduction
-Product launch
-Manufacturing
-Early Adopters
-Trend setters
-Push strategy Decision Point
-Pull strategies -future?

Time
 Product Life Cycle
• Introduction product – selling slowly
• Growth product – is selling the fastest
• Mature product – sells the most
• Declining product – is not selling as well
as it used to
• Decision point product – is no longer
selling
 Introduction Stage
Electric Cars
• High introductory price
• Low sales
• Lots of advertising
 Growth Stage
Hybrid Cars
• More people have been using
them
• Once “early adopters” find and
use a new product, other
consumers are likely to follow.
• Word of mouth and viral
marketing are popular
 Maturity Stage
Sport Utility Vehicles

• Have been around for

awhile
• People are familiar with
them
• Don’t have to do lots of
advertising
 Declining Stage
Cars Run by Gas

• Environmentalists want to
help save the planet
• High gas prices
• People can buy hybrids
instead
 Declining Stage
• When a company is unable to find new
customers for a given product or service, that
product is in the decline stage
• A temporary decline may be reversed by
changing the price or a new advertising
campaign.
 Decision Point
• if efforts to regain sales are
unsuccessful, the company can
look to redesign, repackage, or
reformulate their marketing
efforts

• or they can remove the product

Non-traditional Product Life Cycles
Fad
A fad is a product, service, or idea that is
extremely popular for a very brief period of time,
then it becomes unpopular just as quickly

Examples include:
• Movies
• Books
• Songs
What does the Fad graph look like?
 Trends
• A trend is different than a fad in that it has a more lasting
effect on the marketplace
Disco Clothes
• Many people were wearing them
• Happened in the 70’s
• Influenced by disco
Leggings and Flats
•Lots of people wearing them
•People started wearing
these all of a sudden
•They are popular.
 Niche Markets
• These products have a niche, a small
section of the market that they dominate
• A very short growth stage, that leads to a
solid but not financially spectacular
maturity stage..
• Examples:
Skate Tightener
What does a Niche graph look like?
 Seasonal Products
• Products that are either not available on the
market during certain seasons or periods of the
year or are available throughout the year but
with regular fluctuations in their quantities and
prices that are linked to the season or time of
the year
• Examples:
 Seasonal Products
Garden Products
• You can only
garden in the spring
or summer
Skis and Snowboards
•You can only use
them when there’s
snow
What does a Seasonal graph look like?
 ● Coca-Cola
Activity: ● Tamagotchi
● Fidget spinner
1. Identify whether it will follow a ● Television
traditional or non-traditional ● E-Bike
product life cycle ● Gluten free products
2. If it is a non-traditional product ● Swimming pool supplies
life cycle, specify whether it is a ● Personal computer (PC’s)
● Slime
fad, niche or seasonal
● Organic skin care products
3. Sketch the graph for the product ● Hoverboards
life cycle ● Video game consoles
4. Explain the stages for each ● High performance athletic
specific product gear for specific sports
Traditional Product Life Cycle Examples
1. Coca-Cola
● Introduction: Launched in 1886, initially marketed as a tonic.
● Growth: Rapidly gained popularity, expanding distribution and marketing efforts.
● Maturity: Became a household name, achieving peak market saturation.
● Decline: Facing challenges from health trends and competition, it diversified its
product line (e.g., Diet Coke, Coke Zero).

2. Televisions
● Introduction: Early models in the 1920s and 1930s were bulky and expensive.
● Growth: Post-World War II, televisions become common in households.
● Maturity: By the 1990s, nearly every household had a TV; market growth slowed.
● Decline: The rise of streaming and mobile devices led to a shift in viewing habits,
although smart TVs are now rejuvenating the category.
3. Video Game Consoles
● Introduction: The first consoles, like the Magnavox Odyssey, debuted in the early 1970s.
● Growth: The 1980s and 1990s saw explosive growth with systems like the NES and Sega
Genesis.
● Maturity: By the 2000s, consoles like the PlayStation and Xbox dominated, with extensive
libraries of games.
● Decline: As mobile gaming and digital downloads became popular, traditional console sales
began to level off, though they have adapted with new technologies.

4. Personal Computers (PCs)

● Introduction: Introduced in the late 1970s and early 1980s (e.g., Apple II).
● Growth: Rapid adoption in the 1980s and 1990s as businesses and households embraced
them.
● Maturity: By the early 2000s, market saturation occurred, and growth slowed.
● Decline: Tablets and smartphones have changed usage patterns, but PCs continue to adapt
with new functionalities.
Non-Traditional (Fad) Product Life Cycle
Examples
1. Tamagotchi
● Introduction: Released in 1996, these virtual pets gained instant popularity.
● Growth: Sales skyrocketed, especially among children and tweens, fueled by
nostalgia and media coverage.
● Decline: By the early 2000s, the craze subsided as interest shifted to new
technologies and toys.

2. Fidget Spinners
● Introduction: Gained popularity in 2017 as stress-relief toys.
● Growth: Saw explosive sales and widespread visibility in schools and social
media.
● Decline: Within a year, interest diminished significantly, leading to
overproduction and discounted prices.
3. SLIME
● Introduction: Became popular in the mid-2010s, especially among children.
● Growth: Driven by DIY videos and social media, slime-making kits became a
trend.
● Decline: While some interest remains, the initial craze has diminished, with
many children moving on to other trends.

4. Hoverboards
● Introduction: Emerged in 2015 as a trendy personal transportation device.
● Growth: Quickly gained popularity, especially among teens, and became a
holiday gift staple.
● Decline: Safety concerns and regulatory issues led to a sharp decline in
sales and interest shortly thereafter.
Non-Traditional (Niche) Product Life Cycle
Examples
1. Electric Bicycles (E-bikes)
● Introduction: E-bikes emerged in the late 1990s but gained significant traction in the 2010s as
urban commuting solutions.
● Growth: Increased awareness of sustainability and health led to rapid sales growth, particularly in
urban areas.
● Maturity: As more brands enter the market and technology improves, e-bikes have become a
recognized category, though they still cater to specific user needs.
● Current Trend: E-bikes are becoming more mainstream, but they still retain niche appeal for
environmentally conscious consumers and commuters.

2. Gluten-Free Products
● Introduction: Gained popularity in the early 2000s as awareness of gluten sensitivities increased.
● Growth: Sales surged as consumers sought alternatives, leading to a wider range of gluten-free
options in supermarkets.
● Maturity: The market has stabilized, with gluten-free products becoming a standard offering, though
they still cater to a specific dietary niche.
● Current Trend: While mainstream, gluten-free products continue to appeal to health-conscious
consumers and those with dietary restrictions.
3. Organic Skin Care Products
● Introduction: Gained traction in the early 2000s as consumers became more aware of the
benefits of natural ingredients.
● Growth: Rapid growth followed as demand for organic and clean beauty products surged,
particularly among health-conscious consumers.
● Maturity: The organic skin care market has stabilized, with many established brands and new
entrants focused on niche ingredients or eco-friendly practices.
● Current Trend: Continues to appeal to consumers looking for sustainable, natural options.

4. High-Performance Athletic Gear for Specific Sports

● Introduction: Specialized gear for niche sports (e.g., rock climbing, ultra-marathons) often comes
from small brands.
● Growth: As interest in these sports grows, so does demand for specialized equipment and
apparel.
● Maturity: Brands cater to dedicated enthusiasts, creating a loyal customer base, though overall
growth may be limited compared to mainstream sports.
● Current Trend: Continues to serve passionate niche communities, often with innovations tailored
to specific needs.
Non-Traditional (Seasonal) Product Life
Cycle Examples
1. Winter Clothing
● Introduction: Winter apparel (e.g., coats, boots) hits stores in late summer or early fall.
● Growth: Sales increase as temperatures drop, typically peaking around the holiday
shopping season.
● Maturity: Peak sales occur in late December and early January, as consumers prepare
for winter.
● Decline: Sales decline sharply in late winter and early spring when stores begin to clear
out inventory for spring collections.

2. Swimming Pool Supplies

● Introduction: Pool products (e.g., chemicals, floats) are stocked in early spring.
● Growth: Sales increase as the weather warms up, typically peaking in late spring and
early summer.
● Maturity: The highest sales occur during peak summer months when pools are most in
use.
● Decline: Sales decline sharply in late summer and fall as the swimming season ends.
4. Back-to-School Supplies
● Introduction: School supplies (e.g., notebooks, backpacks) appear in stores in late July.
● Growth: Sales increase rapidly as families prepare for the new school year, peaking in late
August.
● Maturity: Peak sales occur right before school starts, as parents buy last-minute items.
● Decline: Sales drop significantly after the school year begins, with remaining stock often
discounted.

5. Valentine’s Day Gifts

● Introduction: Seasonal gifts (e.g., chocolates, flowers, cards) start appearing in stores
around January.
● Growth: Sales surge as Valentine’s Day approaches in February, with consumers buying
gifts for partners.
● Maturity: Peak sales occur in the days leading up to February 14.
● Decline: After Valentine’s Day, sales drop sharply until the next year’s holiday.