Product Life Cycle / Boston Matrix
Product Life Cycle
The product life cycle is a chart, intro where a product is newly introduced growth is when that product is growing. Maturity is when its at its highest peak and decline is where that product is now going down hill and not selling.
Extension Strategies is where a products time of being sold is extended and stay in maturity for example; mars bars are never out of date. More adverts make a new and improved product more popular.
Boston Matrix is a chart where they put products into certain categories. There are 4 categories; Cash cow - has low Market Growth but high Market Share. eg; 'cadburys'. The dog - has low Market Share and low Market Growth. eg; 'bounty'. Rising Star - has high Market growth and high Market Share. eg; 'maltesers'. different products get put on the graph in what section they are suitable for. The rising star is the best one to have that will bring in most profit and is also popular. The dog is the worst one as it brings barely any profit and is old or not popular.
Market Share is when a company owns a certain share of the market. eg; Apple own 30% of the market.
Market Growth is where that product or company is going to be well known and popular in the future. It may not be well known now but may grow in the market.
Product Range is when there is more then one version of a product on the market.