Brand lifecycle

  1. Development Stage
    The development stage is where the idea, the business, the product or the service is conceived, developed, branded and even tested before being introduced to the market.
  2. Introduction Stage
    Brands, products or business will usually start their lifecycle in the public’s eye during the introduction stage. During this stage, companies heavily advertise their brands, products or services with brand awareness as the objective.
  3. Growth Stage
    Brands enter the growth stage of the life cycle when sales start growing exponentially. Companies at this stage may increase their distribution channels or spend even more on advertising. When companies succeed at this stage it gives room for competition to enter the market with similar products or services as yours.|
  4. Maturity Stage
    With the increase in competition, a company’s brands will eventually reach maturity. During this stage, competition for market share may be fierce. New competitors will often have trouble successfully entering the market as the 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 a quality leader. The company may keep prices relatively higher to maintain its premium image. The target market may include older users with higher incomes.
  5. Decline Stage
    Sales start to fall for a company’s product brands in the decline stage. At this point, it is still possible to extend the product’s life 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.


Note:
The habits of customers are rapidly changing.
In every season of a brand, businesses must remember to see with fresh eyes through the lenses of heritage.



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