Product life cycle/ Boston Matrix

Surena Momi

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

(Boston Matrix)-  Products fall under 4 categories; Cash Cow, Star, Problem Child and Dog.

4 STAGES

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.

Key Terms

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,

Boston Matrix;

This theory can be bias as people can have different views, opinions and taste when the products are put into each stage.