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Brand LifeCycle

Development-Introduction-Growth-Maturity-Decline

Maturity Stage

Conclusion

Because of increased competition, a company's brands will eventually reach the maturity stage of the product life cycle. During this stage, competition for market share may be fierce. New competitors will often have trouble successfully entering the market as market potential is limited. A company will often need to differentiate the brand of products toward a specific segment. For example, the company that first entered the market may focus on being the quality leader. The company may keep prices relatively higher to maintain its premium image. The target market may include older users with a higher household income.

Growth Stage

All product categories have a specific life span called the product life cycle. The product life cycle can pertain to unnamed products as well as those associated with a specific brand name. Many factors, such as competition and technology, affect brands and their product life cycle. Nevertheless, brands or products typically go through five stages of growth: development, introduction, growth, maturity and decline.

Brands enter the growth stage of the product life cycle when sales start growing exponentially. Brand managers may increase distribution during the growth stage to further enhance sales, according to netmba.com. A company may also improve the quality of their product brands, adding various flavors or features. Because of the success of one or more companies, more competitors will enter the market with their own brands. Consequently, some competitors may try to lower prices to gain marketing share.

Brand Lifecycle (BCL) is a concept built around the idea that brands should know where their customers are positioned in their purchase journey and then treat them accordingly. Simply put, customers who are at different stages of their relationship with your brand must be approached and cultivated using different strategies. This requires deeper customer intelligence at every touchpoint throughout a buying cycle

Decline Stage

Introduction Stage

Brands and their product life cycle actually commence in the public's eye during the introduction stage. During the introduction stage, companies heavily advertise their brands and products; and execute trade show and in-store promotions for potential wholesale and retail customers, respectively. Company advertising is mainly focused on building brand awareness. Companies usually price their brands relatively high during the introduction stage to recoup some of their development costs. Competition is low or non-existent during this stage. Thus, a successful brand concept will usually elicit heavy sales and propel the brand toward the growth stage.

The decline stage is where sales start to fall for a company's product brands. At this point, it is still possible to extend the life of the product by finding new markets for the brand like international markets; or even finding additional uses by repositioning the brand. For example, a small detergent manufacturer may extend the life of the brand by selling to emerging markets, such as India. The company could also potentially extend the life of the brand by marketing the detergent in car washes, hotels, schools and even hospitals. Ultimately, a brand may need to be sold or gradually discontinued if it is no longer profitable.

Development Stage

Technically, the development stage is the "incubation stage" of a brand's product life cycle, according to the article titled "The Product Life Cycle" at netmba.com. The development stage is where the product concept is conceived, developed, branded and even tested before being introduced to the market. A lot of capital typically goes into the development stage, including product and advertising costs. It is certainly conceivable that a poor concept idea or the lack of capital could end the life of a brand before it is introduced.

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