Maturity Stage and Decline Stage

This stage view the company new product become less new and it is now standardized, well known and established in the current market. It is increasingly distributed to larger markets in national or even in international dimensions. Price wars intensify against competitor brands and substitution products will cause the company production facilities move to location to have cheaper labour in order for the company to control costs. Sales volume in this stage will be maximized as the market saturation is reached.

Public consumption will becomes dependent upon the brand name and image of the company.

Parity pricing is the norm in this stage where company must not set price too high in order to not loss of market share meanwhile price cannot be too low because will lead price war. Brand preference and features diversification will be the advantage of the company. The company in this stage will struggle to maintain and increase market share. Decline Stage After the period of stable growth stage, the revenue and profit generated from sales of the product starts dipping because to market saturation and this is where product reaches the decline stage.

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The company will put efforts to cut production and distribution costs.

This is because the company main concern is to ensure sales and profit margin does not decline even further. Price will be set lower that below the market price because company does not want to store products and clear all existing products. The products will set low pricing to attract more buyers.

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Profits become too less for the company in order to handle the competition in the market and the product is eventually retired, marking the end of the product life cycle. This is the stage where company need to fill out a product line while waiting for a new product to be launched as a replacement.

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Maturity Stage and Decline Stage. (2020, Jun 02). Retrieved from

Maturity Stage and Decline Stage

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