Blockbuster is an American DVD rental company that was founded in 1985. in 2004 Blockbuster had more
than 60 000 employees and more than 8 000 stores worldwide but in 2010 as demand for DVDs declined
the company went bankrupt and currently operates only one store symbolically in the United States
there are some products that we can no longer find on sale for example we can say the old models of
Nokia funds years ago or the first iPhone models produced by Apple in other words these and similar
products went into decline after a while and left the market before any product is presented
to the market it is first only in the form of an idea later market research is conducted on
that idea if it is concluded that the product will be successful then the product is started
to be produced and presented to the market in fact products are like living organisms they also have
a life cycle and each cycle has its own marketing financial management Etc strategies there are
some products that leave the market prematurely for example according to statistics most of the
products introduced to the market fail at the very beginning and leave the market the life cycle of
each product consists of four stages except that some products cannot pass to the next stage and
leave the market first stage introduction second stage growth third stage maturity and the last
stage decline the product life cycle approach was proposed by Raymond fernin an American Economist
in 1966. any product that we can think of it is at one stage and if the manufacturer of that
product is a professional most likely he or she knows what stage the product is at and sets right
strategies according to that stage but there are some companies that don't know what the product
life cycle is and set the wrong strategies which ultimately leads to product failure
now let's take a closer look at these stages at the first stage during the product introduction
period the product is put on sale during this period the sales are very low because the product
is new in the market there is a great need for advertising to make people aware of the product
at the same time there are not many competitors of this product in the market usually there are no or
negative returns but what strategies should this company management choose first of all
advertisements should be done on various channels to inform the target people about the product
collaborations with the right Partners should be done the products should be presented to people
as a test so that they have complete knowledge about the product and their prejudices are removed
when this product makes more sales it is already passed to the next stage that is the growth stage
in the second in the growth phase sales and profits increase the product is already recognized
by the customers in the market the costs related to that product start to decrease competitors
seeing the situation also bring cheaper similar products to the market in the period of growth
more different strategies should be chosen because the product in the market as well as the situation
of the market itself have changed during this period the products should be distributed more
given that new competitors enter the market additional values or features must be added to
the product then the target group of the product should be expanded further in order not to lose
the market share it is necessary not to reduce the advertising costs but this time the values
added to the product should be highlighted in the advertisements so that it can remain dominant in
this segment of the market after the growth period the product enters the maturity period
in the maturity stage competition in the market reaches its peak competitors compete for market
share weak competitors leave the market the price of the product Falls due to high competition the
growth rate of sales is slowing down the maturity stage usually lasts longer than
other stages so what strategies should be done during this period of the product the company
should further intensify its distribution channels higher versions of the product or similar versions
should be created and advertising should focus on the new product family for example Coca-Cola
began the production types of sugar-free caffeine free Etc the last stage is the period of decline
during this period sales are decreasing there is a demand decrease for that product in the market
revenues are falling many competitors for this product are leaving the market many factors can
cause a period of recession for example some technological innovation political event change
in customer Behavior or internal problems Etc can cause it in this period the company should
consider these strategies in order to come out with less loss for example advertising costs
should be reduced product sales prices should be reduced to stay in the market and relationships
with past loyal customers should be improved in some cases companies may sell that brand to other
companies in certain cases during the decline phase adding new values or features to the product
can lead to rise again but in other cases the only way is to remove the product from the market
for example video cassettes produced by different companies can be cited
let's practically look at the sales of Apple iPods manufactured by Apple between 2006 to
2014 according to the product life cycle as you can see sales were low during the introduction
phase then there was a sharp increase in sales during the growth phase and then during the
maturity phase the sales growth began to stabilize and starting from 2010 sales began to decline