ABSTRACT
The term ‘Product Life Cycle’ was first suggested by Theodore Levitt. Theory suggests that when a new product is launched on a market it goes through several growth stages, predicated upon the belief that all products have a limited life-span. The Product Life Cycle is divided into four stages, which are defined by revenue generation [sales] and life-span. These stages are as follows: Introduction phase, Growth phase, Maturity phase, and Decline phase. Consumers have become aware of and started buying the product; therefore, the Growth phase stage is characterised by significant increase in demand and profits. An awareness of the stage that a product is at can help an organisation to determine its next course of action, such as brand extension or termination. The approach taken during each stage of the life cycle depends on the nature of the product strategy. A major drawback with the Product Life Cycle theory is that it is not predictive.
