Transcript Product life cycle - Garnet Valley School District

Product life cycle
By: Brian Smith
Jon Xu
Nick Gland
Maddie Mansi
Students will know
•
•
•
•
•
•
What a product life cycle is
What the BCG Matrix is
The 4 stages of a product life cycle
How the BCG matrix works
How the Product life cycle graph works
How the life cycle effects the BCG Matrix
Product life cycle
• Definition- Identifies the stages a product goes
through from the time it enters the market
until it is no longer sold
• Products go through four stages in their life
cycle.
• By studying the competition a business can
determine the type of marketing mix needed
in each stage of the product life cycle
Product life cycle stages
• Introduction: New product introduced to market.
Usually has no direct competition and competes
with older more established products
• Growth: If a new product is introduced
successfully, then it will attract more customers
and sales will begin to grow. Competitors will see
that the product offers profit and try to enter the
market with their own brand
Product life cycle continued
• Maturity: Growth of sales begins to decline.
Competitors may have come out with similar
products. At this point, a company wants to
defend their market share.
• Decline: This is when product sales begins to
decline. Your product is probably outdated or
not innovative by now. Instead of losing more
money, firms may withdrawal that product or
reduce costs.
The Lifecycle
The BCG Matrix
How to read a BCG Matrix graph
• The Dog stands for a
low growth and a low
market share, because
of this it has a low profit
with high investment
• Question mark means
High growth and low
market share, It has low
profits but needs high
investments.
How to read a BCG Matrix graph
• Stars are when your
business has high
growth and high market
share.
• The cow means that
there is a low growth
and a high market
share, because of this
your investments
should be low with high
profits.
Product lifecycle & BCG Matrix relation
They’re not directly related but
they both describe lifecycles of
businesses or products.
How they both apply to real life
• Example of product life cycle: The Ipod 1: First
introduced in 2001, was a huge market success,
knock offs were soon made.
• 2: They made all the ipod variations with more
memory and capability
• 3. the Ipod classic was eventually beaten out by the
Ipod touch, and other touch screen items.
• 4: It was declined when the Iphone came out.
How they both apply to real life
Example: Apple
1: The first year apple was a business they were
a dog.
2: They quickly over took the personal electronic
Industry, beating out the blackberry as #1 (star)
Conclusion
•
•
•
•
•
•
•
Now you should know…
What a product life cycle is
What the BCG Matrix is
The 4 stages of a product life cycle
How the BCG matrix works
How the Product life cycle graph works
How the life cycle effects the BCG Matrix
Activity
• Find a product that has
gone through the
product life cycle and
describe the stages it
went through
Activity
•Name a company
for each of the 4
quadrants of the
BCG matrix
up next…
•POP
QUIZ!!!