Question

Identify the highlighted ‘C’ stage of the product life cycle given in the image below and specify its any four features.

Answer 1

The highlighted ‘C’ stage in the product life cycle is the Maturity Stage.

Four features of the maturity stage of a product are:

1. Intense Competition: During this stage, new competitors enter the market, leading producers to lower prices to attract customers. As identical items become available, companies struggle to keep or expand market share.
2. High Sales: Sales peak at this point since everyone is aware of the product. Further, as it will be difficult to attract new clients, sales generally level off or stabilise.
3. Focus on Brand Loyalty: During this stage, companies aim to retain existing customers. They invest in product enhancements, value-added services, and targeted marketing initiatives to differentiate their products. Maintaining brand loyalty requires strong branding and product distinction. As a result, companies face higher marketing costs.
4. Lower Profit Margin: The pressure of price competition, stabilised or falling sales, and increased marketing costs make it difficult for the companies to keep their profits, resulting in thinner profit margins.