Explain the maturity stage and decline stage of product life cycle.

Maturity Stage:

During this stage, sales continue to grow but at a decreasing rate. Competition increases further, and markets get stabilised.

Characteristics:

• The product is known all over the market.
• A third level market (low income group) may emerge.
• Prices are reduced due to competition, but promotional expenditure remains high.
• Profits decline and marginal producers are forced to leave the market.
• Manufacturers introduce new models and broaden their lines.
• Supply exceeds demand for the first time, leading to saturation.

Strategies to lengthen this stage:

• Differentiating the product from competitors.
• Focussing on brand image.
• Extending warranty period.
• Introducing reusable packaging.
• Developing new markets and finding new uses.

Decline Stage:

This stage is characterised by either the product's gradual displacement by new and superior products or by changes in consumer's buying behaviour.

Characteristics:

• Sales fall down sharply.
• Promotional expenditure has to be reduced drastically to minimise loss.
• The emphasis is on efficient distribution at the lowest cost.
• Unless new uses are found, the product may soon go out of the market.

Strategies to avoid sharp decline:

• Adding new features to the product.
• Introducing economy models or packs to revive the market.
• Using new and attractive packaging to attract customers.
• Adopting selective promotion to reduce distribution costs.