Product life cycle/ Boston Matrix
Product Life Cycle- Can help a business see what products are doing well and which are not.
PRODUCT LIFE CYCLE
Introduction- The start of the products life cycle.
Growth- Popularity increases which means higher sales and profit
Maturity- When the business helps extend the products life by updating the product eg price, limited editions, new features.
Decline- The end of the products life
Extension strategies- Extending a products life by changing the design, style, feature, price.
(Boston Matrix)- Products fall under 4 categories; Cash Cow, Star, Problem Child and Dog.
Cash Cow= improve the product to make it better to increase sales and profit
Dog= Kill the product as its life is over.
Star- Invest all money into the product as it has the most popular sales and profit income for the business
Problem Child= Having a product trial to see how the business can improve the product.
Market share- High market share means the business is doing well.
Market Growth- High market growth means its doing well.
Product range- Range of products from the same company e.g Cadburys
What is wrong with the product life cycle and the Boston Matrix models?
Product Life Cycle;
This theory just categories the products but doesn't help the business improve but only see what product is doing well and which one isn't,
This theory can be bias as people can have different views, opinions and taste when the products are put into each stage.