Product Life Cycle Strategy
If in the Product Life Cycle (Product Life Cycle) is considered as a strategic value in a company, then the manager should be able to determine where the position of the Product Life Cycle (Product Life Cycle) of the product. Identification in the stages of the Product Life Cycle (Product Life Cycle) can be determined by combining 3 three factors that indicate the status characteristics of a product and also compare with general patterns. Product Life Cycle stage in a product can be determined by identifying its status in the market volume, rate of change of market volume.
(Kotler 1997) In the four stages of the Product Life Cycle analysis, there are several strategies, namely:
1. Introduction (Introduction)
Rapid launch strategy (rapid skimming strategy)
Launching a new product at a high price through a high level of promotion.
Slow launch strategy (slow skimming strategy)
is a new product launch with a high price and also a little promotion.
Rapid penetration strategy (rapid penetration strategy)
is a product launch at a low price with a large promotion cost.
Slow penetration strategy
is a new product launch with a low promotion rate and also a low price.
2. Growth Stage
During the growth stage the company uses several strategies to be able to maintain rapid market growth as long as possible in the following ways:
Improve quality of products and also add features to new products and better styles.
The company must add new models and products> accompanying products (that is, products of various sizes, flavors, etc. that can protect the main product)
The company must enter a new market segment.
The company must increase its distribution coverage and also enter new distribution channels.
The company is moving from advertising that can make people aware of products (product awareness advertising) to ads that make people point (choose) your product (product preference advertising)
The company lowers prices to attract buyers who are sensitive to a price at each layer.
3. Maturity Stage
The company eliminates less powerful products and also concentrates more on resources on more profitable products as well as on new products.
By modifying the market where the company is trying to expand the market for established brands.
The company is trying to attract consumers who are the users of its products.
Using the feature improvement strategy (feature improvement), which has the goal to be able to add new features and expand the versatility, safety and comfort in the product.
With which defensive strategy to maintain market products where the results of that strategy will modify the mix in marketing.
With a strategy to improve quality that aims to be able to improve the ability of a product, for example durability, speed, and also the performance of the product.
The model improvement strategy aims to increase the aesthetic appeal in products such as models, colors, packaging and so on.
Using a take-off strategy which is one of the strategies used to reach the new consumer acceptance phase, this strategy can renew growth when the product enters the maturity process.
4. Decline
Increase investment so you can dominate or also occupy a good competitive position.
Change the product or also look for new uses or benefits in the product
Look for new markets
Stay at the company investment level until uncertainty in the industry can be overcome
Reducing investment in companies by selectively by leaving consumers who are less profitable.
With Harvesting strategy to be able to realize cash returns quickly
By leaving the business and also selling company assets.