Section title: Marketing - The product life cycle Introduction Marketing as an investment The product life cycle The Boston Matrix Marketing and data analysis Glossary Test     Objectives: To understand the product life cycle To understand how businesses use the product life cycle Companies use many tools to analyse their products' performance and to plan their future marketing strategy. One of the most common tools is the product life cycle. The stages in the product life cycle Development stage This is the stage in which the product and the marketing for the product are researched and developed. Nothing will have been sold to consumers at this stage; Shinkendo are currently at this stage. Growth stage This is the stage in which the product is launched and the sales grow rapidly (hopefully). Consumers try out the product for the first time. Producers spend a lot on marketing to raise awareness of the product. Maturity stage At this stage sales growth has slowed down, it is more difficult to find new consumers, but there is steady demand from the existing market. Saturation stage At this stage demand for the product levels off and even begins to decline - perhaps consumers are bored of the product or have found a better alternative. If the producer does not develop the product at this stage then it may go into decline to the point that it is not worth producing it any more. Extension strategy stage Businesses can develop the life of their product further if they use "extension strategies". For example, Kit Kat have developed the life of their product by offering chunky Kit Kats, Kit Kat ice cream, white chocolate Kit Kats and so on. The result is that the Kit Kat brand appeals to a much wider consumer group and existing consumers are buying more Kit Kat branded snack foods. From market research, companies ought to be able to predict the likely product life cycle for their new products. How can they do this? Companies have data from previous market research. They can compare this to their new market research. Companies also have data from past product launches that they can compare and use in planning any new product launches. Study the Case Study. Can you develop from this any estimate of the future life cycle for the Shinkendo Oi? You may need to sketch three or four possible scenarios.