PRODUCT LIFE CYCLE

All products have a particular life span, which is called the product life cycle. The product goes through four stages from Introduction to Decline in a particular time span. The four distinct but not wholly-predictable stages are

·                     Introduction

·                     Growth in sales revenue

·                     Maturity, during which sales revenue stabilizes

·                     Decline, when sales revenue starts to fall and eventually vanishes or becomes too little to be viable.

As a product moves through these stages, its pricing, promotion, packaging, and distribution are re-evaluated and changed if required to prolong its life. In summary, it is the journey from "new and exciting" to "old and dated."

The stage of its life cycle the product is currently in will impact the way it is marketed to consumers. For example, a brand-new product will need to be explained to consumers, while a product that is further along in its life cycle will need to be differentiated from its competitors.

The length of time a product is on the market is largely contingent upon its competition, technology and even the savvy of a company's marketing department. One of the best ways of extending a product's life cycle is to continuously garner feedback from consumers, finding out what they need and want from a particular product.

INTRODUCTION STAGE OF COCA COLA

In the Introduction stage, Coca Cola was launched and initially promoted. Efforts were made for creating its awareness in the market, inducing trial of the product and securing space in the outlet shelf  When their costs were high, sales volume were low, and there was no existing demand for Coca Cola in this stage.

GROWTH STAGE OF COCA COLA

In the growth stage Coca Cola experienced rapid increase in sales volume and its competition began to increase. People got more awareness about Coca Cola and the increase in the competition leads it to decrease prices.In this stage the marketing strategies used by Coca Cola were as follows:

·         Product improvement

·         New models were developed

·         It entered new market segments

·         It enlarged its distribution channels.

MATURITY STAGE OF COCA COLA

Coca Cola is in the Maturity stage from years now. The marginal costs of Coca Cola are low in this stage, sales volume is at the peak and most of the market is covered. There is increase in competitors which are entering in the market. Coca Cola’s brand differentiation and features diversification is emphasized to maintain and increase market share.

DECLINE STAGE

This is the stage in which sales of the product begin to fall. Either everyone that wants to, has bought the product or new, more innovative products have been created that replaces that product. The only way to increase sales during this period is to cut the cost of the product.