Product Lifecycle

The product lifecycle includes the following 4 consecutive stages:

• Market introduction , the product is in a stage of introduction on the market, the demand must be created, the costs are high because sales do not reach the profitability point, Marketing attempts to create the demand of the product within the market
• Growth, sales increase with a high growth rate, it allow a unit costs reduction, Marketing attempts to maximize the market share
• Mature, sales are at their maximum, the growth rate is stabilizing, unit costs are the most reduced, Marketing attempts to maintain its market shares
• Decline, sales decrease, making increase unitary product costs, Marketing attempts to boost the product or to prepare its withdrawal from the market.

Each stage is presenting different growth characteristics and the Marketing Strategy must be adapted to each of them.

It is fundamental for the Logistics function and mor precisely for supply planning functions to share information on the product lifecycle with its Marketing correspondent.