- A business can make their product different by changing the name, design and formulation and the packaging.
- The product life cycle
- 1. Introduction: This is where the product is launched.
- 2. Growth: This is where sales show their most rapid growth. The product is still new and is in great demand e.g. HD TV
- 3. Maturity: The product reaches its peak sales and is at it's most profitable point.
- 4. Saturation: Competitors start offering similar products and sales stop growing although sales are still high e.g. ipod.
- 5. Decline: The final stage in the life cycle where sales start falling as consumers see it as old e.g. vcr.
- Extension stratergies: When a product starts to decline a business will often try to extend it's life using added features, an advertising campaign or lowering the price of the product.
- A diagram of the product life cycle
Similar Business Studies resources: