Kotler splits the product life cycle into 4 phases: Introduction, growth, maturity and decline. Introduction is described as a “period of slow sales growth as the product is introduced in the market”. Growth is described as a “period of rapid market acceptance and profit improvement”. Maturity is a “slowdown in sales growth because the product has achieved acceptance by most potential buyers”. Lastly, decline is when “sales show a downward drift” (p. 310). The chasm lies within the growth phase; if the product does not grow passed the chasm into mainstream adoption it could fail.
This is the idea that products, like people, have a birth, a life and a death, and that they should be financed and marketed with this in mind. Even as a new product …show more content…
A distinction is sometimes made between fashion items, such as clothing, and pure fads, such as the notorious pet rocks. It is not always immediately obvious into which of these two categories a product falls. When they were first introduced in the early 1980s, in-line skates seemed as if they might be a brief fad. But 25 years later they were still selling strongly, firmly set in the mature stage of their life cycle. They may not be destined for the life cycle of the corn flake, but they have already outlived many seemingly more permanent products. (Source: economist.com)
Let’s look into PLC model for Botox – the star product for Allergan:
The product lifecycle of Botox is in the Bowling Alley phase. The market momentum has picked up as more consumers for the reasons mentioned above (aging population, increasing income, etc.) have become more open to adopt the new technology to address the issues they face. One of the reasons this product is in the alley is because it has two major benefits that can have enormous applications. Botox’s sales are roughly divided equally for Therapeutic (54%) and Aesthetic (46%) so the potential is huge. This is not a product that has matured or in the decline by any
This is the idea that products, like people, have a birth, a life and a death, and that they should be financed and marketed with this in mind. Even as a new product …show more content…
A distinction is sometimes made between fashion items, such as clothing, and pure fads, such as the notorious pet rocks. It is not always immediately obvious into which of these two categories a product falls. When they were first introduced in the early 1980s, in-line skates seemed as if they might be a brief fad. But 25 years later they were still selling strongly, firmly set in the mature stage of their life cycle. They may not be destined for the life cycle of the corn flake, but they have already outlived many seemingly more permanent products. (Source: economist.com)
Let’s look into PLC model for Botox – the star product for Allergan:
The product lifecycle of Botox is in the Bowling Alley phase. The market momentum has picked up as more consumers for the reasons mentioned above (aging population, increasing income, etc.) have become more open to adopt the new technology to address the issues they face. One of the reasons this product is in the alley is because it has two major benefits that can have enormous applications. Botox’s sales are roughly divided equally for Therapeutic (54%) and Aesthetic (46%) so the potential is huge. This is not a product that has matured or in the decline by any