UEH UNIVERSITY

SCHOOL OF INTERNATIONAL BUSINESS – MARKETING

ESSAY
Subject: Principle Of Marketing

Topic: Sale promotion strategy within 4 stages of Product Life Circle

Student’s name: Mai Tú Anh

ID: 31221023268
Class: 48 – AV001
Lecturer: Trần Mai Đông
Course ID: 24C1MAR50316101

Ho Chi Minh, November 01st , 2024

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 TABLE OF CONTENTS

A. INTRODUCTION.........................................................................................3

B. THEORY........................................................................................................3
1. What is the life cycle of a product?..............................................................3
2. The 4 stages of a product’s life circle...........................................................3
2.1. Introduction....................................................................................................3
2.2. Growth............................................................................................................4
2.3. Maturity..........................................................................................................4
2.4. Decline............................................................................................................4
3. Marketing strategies for each stage of the product life cycle.....................5
3.1. Marketing strategies during the introduction stage........................................5
3.2. Marketing strategies during the growth stage................................................7
3.3. Marketing strategies during the maturity stage..............................................8
3.4. Marketing strategies during the decline stage................................................10

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 A. INTRODUCTION

In today's market environments, success depends on an understanding of the product

life cycle. The product life cycle serves as a model depicting a product's journey from
launch to market exit. This model offers insights into market patterns, customer
behaviors, and strategic approaches. This could also lead to a more thorough analysis
of the different stages in the product life cycle, allowing for better marketing
strategies, pricing, and allocations that will keep the product a top performer for as
long as possible. This article will explain the relationship of the product life cycle,
which consists of four stages: introduction, growth, maturity, and decline, as well as
appropriate marketing tactics that can give ideal outcomes.
B. THEORY
1. What is the life cycle of a product?

A product life cycle is the length of time from a product first being introduced to
consumers until it is removed from the market. A product’s life cycle is usually
broken down into four stages; introduction, growth, maturity, and decline.

Management and marketing experts utilize product life cycles to establish advertising
schedules, pricing points, growth into new product markets, package redesigns, and
other factors. Product life cycle management refers to the strategic strategies used to
support a product. They can also assess whether newer items are ready to replace
older ones on the market.

2. The 4 stages of a product’s life cycle

In general terms, it can be said that a product goes through 4 stages: introduction,
growth, maturity and decline.

2.1. Introduction

Introduction is the initial step of the product's life cycle. During this stage, the product
is introduced to the market, and efforts are made to capture the attention of the target
audience, as customers are unfamiliar with it and demand is low.

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The product's price will most likely be high during this first period owing to
production and distribution expenditures. Companies will need to invest in advertising
and marketing to increase product awareness and customer interest.

2.2. Growth

The product starts to become more well-known during the growth stage, and sales and
earnings rise as a result. However, the number of rivals in the market is growing
during this phase. As a result, now is a crucial time to concentrate on marketing and
enhancing the product in order to keep expanding.

Putting methods in place to draw attention to the product and solidify the brand's
reputation in the marketplace is crucial.

2.3. Maturity

A slowing in sales growth is a characteristic of the maturity stage, which is the longest
period of the product life cycle.

Demand starts to level off at this time, and rivals are well-established. The product's
price may drop even more, and in order to stay competitive, businesses will need to
concentrate on retaining customers and enhancing product quality.

2.4. Decline

The product starts to lose sales and appeal during the decline stage. At this point, the
product's strongest rivals are able to remove it from the market as demand declines.
Important choices like whether to stay in the market or stop investing must be made
during this stage.

It is crucial to note that not every product experiences every phase of its life cycle.
While some items may have a long lifespan and stay in the mature stage for many
years, others may have a short lifespan and never reach the mature stage.

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In addition, by employing fresh marketing techniques, including introducing a new
product version or entering new markets, a product may also be able to move back to
the introduction or growth stage.

3. Marketing strategies for each stage of the product life cycle

Throughout a product's life cycle, marketing techniques are essential to its success. By
using these methods, businesses can determine the needs of their target market and
modify their plans accordingly.

Marketing tactics can boost a product's exposure and demand throughout its life cycle,
foster customer loyalty among current clients, and draw in new ones. Additionally,
these strategies enable the business to efficiently handle competition and remain
relevant in a market that is ever changing.

3.1. Marketing strategies during the introduction stage

The introduction stage of a product's life cycle is a critical period that requires
strategic marketing efforts to establish a strong foundation. Effective strategies can
help create brand awareness, generate initial demand, and position the product for
long-term success.

- Promotions and Incentives:

 Discounts and Coupons: Offering price reductions can be a powerful
incentive for potential customers to try a new product.
 Free Trials or Samples: Providing customers with the opportunity to
experience the product firsthand can help build trust and encourage
purchases.
 Limited-Time Offers: Creating a sense of urgency can drive immediate sales
and generate excitement.

- Demonstrations:

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  In-Store Demonstrations: Having knowledgeable staff demonstrate the
product's features and benefits can be highly effective in attracting
customers and addressing their questions.
 Online Tutorials and Videos: Creating informative content that
showcases the product's functionality can reach a wider audience and
provide valuable information.

- Influencer marketing:
 Collaborations: Partnering with influencers who align with the brand's
target audience can help introduce the product to a larger and more
engaged following. For example, a clothing brand may collaborate with a
fashion influencer to show how to combine items in their store.
 Sponsored Content: Influencers can create compelling content that
highlights the product's benefits and encourages their followers to try it.

- Mass media advertising: To reach a large audience and build brand

awareness, use print, radio, and television advertising. To reach a big audience,
a fast food company might, for instance, air a TV ad during a big athletic event.
The company's budget will also affect this aspect.

- Creating unique brand experiences: Provide consumers with memorable and

poignant brand experiences. For instance, a clothing company may plan an
occasion at which it extends invitations to its clientele and provides a variety of
alluring activities. Customers will be able to share all of the images and videos
on social media after the event is complete.

Case Study: Apple's AirPods

When Apple introduced its AirPods, they employed a combination of these strategies
to drive initial demand:

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 - Influencer Marketing: Apple partnered with popular influencers and
celebrities to showcase the AirPods and generate excitement.
- Limited Availability: Initially, AirPods were only available in limited
quantities, creating a sense of exclusivity and desire.
- In-Store Demonstrations: Apple Store employees demonstrated the AirPods'
features and provided personalized assistance to customers.
- Mass Media Advertising: Apple launched a high-profile advertising campaign
featuring the AirPods in various settings.

Apple was able to successfully launch the AirPods and establish them as a popular and
sought-after product by effectively utilizing these marketing tactics.

3.2. Marketing strategies during the growth stage

The growth stage of a product's life cycle is characterized by rapid sales growth and
increased market acceptance. The main goals of this stage are to increase market share
and create a loyal client base, and solidify the product's position in the market.
Effective marketing strategies are crucial to achieving these goals.

- Product Customization: Offering tailored products can enhance customer

satisfaction and create a sense of exclusivity. By allowing customers to
personalize products according to their preferences, businesses can differentiate
themselves from competitors and foster brand loyalty. For instance, a company
that sells sports footwear might let customers design their own sneakers online.
- Exceptional customer service: Providing exceptional customer service is
essential for building long-lasting relationships with customers. Delivering
timely assistance, resolving issues promptly, and exceeding customer
expectations can create a positive brand image and encourage repeat purchases.
To illustrate, a company that sells electronics might provide free technical
assistance and a longer guarantee for its goods.
- Market expansion: Identifying and targeting new market segments or
geographic regions can help businesses increase their customer base and
revenue. By expanding into untapped markets, companies can diversify their

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 risk and capitalize on growth opportunities. For example, a coffee brand may
expand into new international markets to increase its global presence.

Case Study: Zara's Growth Strategy

Zara, the Spanish fashion retailer, is a prime example of a brand that has successfully
navigated the growth stage. Zara has been able to maintain its position as a leading
fashion retailer and achieve sustained growth throughout the years. These key
marketing strategies helped the company expand rapidly and sustained growth.

- Vertical Integration: Zara's vertical integration model allows it to control the

entire production process, from design to distribution. This enables the
company to quickly respond to market trends and introduce new products
frequently.
- Fast Fashion: Zara's "fast fashion" business model involves rapidly
introducing new collections based on current fashion trends. This strategy
keeps the brand relevant and attracts fashion-conscious consumers.
- Limited Production Runs: By producing small quantities of each product,
Zara creates a sense of exclusivity and urgency among customers. This
encourages them to purchase items before they sell out.
- Global Expansion: Zara has successfully expanded its operations to numerous
countries worldwide. This global presence has allowed the brand to reach a
broader customer base and capitalize on diverse market opportunities.
- Omni-Channel Strategy: Zara's seamless integration of online and offline
channels provides customers with a convenient shopping experience. This
omnichannel approach has contributed to the brand's growth and success.
3.3. Marketing strategies during the maturity stage.

The maturity stage of a product's life cycle is characterized by stable sales and market
saturation. While growth may slow down, the objective remains to maintain market
share, generate consistent profits, and extend the product's lifespan.

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 - Product diversification: Introducing new products or services can help
businesses tap into new market segments, attract new customers, and counter
declining sales. Diversification can also help mitigate risks associated with a
single product line.
- Cross-selling: To entice clients to purchase more, the business may provide
related or complementary goods. Bundling offers, cross-selling suggestions,
and targeted marketing can all help accomplish this. For example, when buying
a new camera, a brand might give you a discount on camera accessories.
- Continuous innovation: Staying ahead of market trends and customer
expectations is crucial in the maturity stage. Investing in research and
development to improve existing products or introduce new features can help
businesses maintain their competitive edge. To enhance performance and user
experience, for instance, a technology company might update its hardware and
software on a regular basis.
- Value-based content marketing: Emphasizing the unique benefits and value
proposition of products or services can help differentiate brands in a crowded
market. Creating high-quality content that resonates with the target audience
can strengthen brand loyalty and draw in new clients. As an example, a
personal care company may use its marketing campaign to emphasize the
natural components and high caliber of its products, or it may use its website
blog to publish content that appeal to its target demographic.
- Cost-based competition: In highly competitive markets, reducing costs can
help businesses maintain profitability. By optimizing production processes,
negotiating better deals with suppliers, or exploring cost-saving measures,
companies can offer competitive pricing without sacrificing quality. For
instance, a clothing brand can lower production costs by outsourcing to other
nations or using less expensive materials.

Case Study: Coca-Cola's Maturity Stage Strategies

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Coca-Cola, one of the world's most iconic brands, has successfully navigated the
maturity stage for decades. The brand has been able to maintain its dominant position
in the soft drink market and continue to generate strong profits.

- Product Extensions: Coca-Cola has introduced numerous product extensions,

including diet versions, flavored variants, and zero-calorie options. This
diversification has helped the brand cater to different consumer preferences and
expand its market reach.
- Global Marketing Campaigns: Coca-Cola's iconic advertising campaigns,
such as "Share a Coke" and "Taste the Feeling," have resonated with audiences
worldwide. These campaigns have helped reinforce the brand's emotional
connection with consumers.
- Limited Edition Products: Introducing limited-edition products or seasonal
flavors can create excitement and drive sales. This strategy helps keep the
brand fresh and relevant.
- Partnerships and Collaborations: Coca-Cola has partnered with popular
brands and celebrities to create limited-edition products or marketing
campaigns. These collaborations can help generate buzz and attract new
customers.
3.4. Marketing strategies during the decline stage.

The decline stage of a product's life cycle is characterized by declining sales and
market share. While it may not be possible to reverse this trend, effective marketing
strategies can help businesses mitigate losses, maximize profitability, and prolong the
product's lifespan.

- Exit strategies: Identifying opportunities to exit the market gracefully can help
businesses minimize losses and allocate resources to more promising ventures.
This may involve selling assets, liquidating inventory, or phasing out the
product gradually.
- Cost reduction and discounting: Reducing production costs and offering
discounts can help increase sales and profitability. By streamlining operations,

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 eliminating non-essential expenses, and offering incentives to customers,
businesses can improve their competitive position. To give an example, a
company can cut expenses by removing underperforming products and moving
to less expensive materials. Offering discounts is an additional way to
encourage product sales.
- Focus on the niche market: Focusing on a smaller, more profitable niche
market can help businesses maintain relevance and profitability. By targeting
specific customer segments with specialized products or services, companies
can differentiate themselves and avoid direct competition with larger players.
For instance, a company that sells cleaning supplies can concentrate on
cleaning boats or pools.
- Brand repositioning: Repositioning a brand can help it appeal to new market
segments or improve its perception among existing customers. By changing the
brand's image, messaging, or target audience, businesses can breathe new life
into a declining product. A motorcycle brand might, for example, change its
emphasis from thrills and speed to dependability and safety.
- Reducing marketing spend: As sales decline, it may be necessary to reduce
marketing expenditures to maximize profitability. However, it's important to
strike a balance between cost-cutting and maintaining brand visibility. For
instance, a company can spend less on traditional advertising and concentrate
on organic or inexpensive internet marketing.

Case Study: Kodak's Decline and Adaptation

During the 1990s, Kodak, once a dominant player in the photographic film industry,
faced significant challenges during the decline stage due to the rise of digital
photography. To adapt to this changing market, Kodak used a number of marketing
techniques:

- Price Reductions: Kodak offered discounts on its film products to stimulate

demand and remain competitive.

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 - Diversification: The company diversified into digital photo printing services,
attempting to capitalize on the growing popularity of digital photography.
- Asset Sales: Kodak sold off non-core assets to generate revenue and reduce its
financial burden.
- Patent Licensing: By licensing its extensive portfolio of patents, Kodak
sought to generate additional income.

Despite these efforts, Kodak ultimately filed for bankruptcy. However, the company's
attempts to adapt to the changing market demonstrate the importance of proactive
marketing strategies in the decline stage. While it may not always be possible to
reverse the decline, effective marketing can help businesses mitigate losses and
prolong their survival.

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 REFERENCES

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https://blog.osum.com/airpods-marketing-strategy/
2. DFreight. (n.d.). Delving into Zara’s supply chain strategy. Retrieved October
30, 2024, from https://dfreight.org/blog/delving-into-zara-supply-chain-
strategy/
3. Smartling. (n.d.). What can we learn from Coca-Cola's global marketing
success? Retrieved October 31, 2024, from
https://www.smartling.com/resources/101/what-can-we-learn-from-coca-cola's-
global-marketing-success/
4. Consor. (n.d.). Kodak’s sale of patent assets: Is it a fair value? Retrieved
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fair-value

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