Maturity Stage Of Coca Cola

Maturity Stage Of Coca Cola

Maturity Stage Of Coca Cola

Introduction

Product life cycle is defined is 4 stages mainly the introduction stage, growth stage, maturity stage and the decline stage. These stages are devised in such a way that it defines where the product stands and where it would go. Coca Cola identified as in the stage of growth because of its large group of loyal customers.

Introduction stage is identified with the slow sales rate. The product typically needs heavy advertisement and promotion to grab attention of the customers in order to be at the growth stage. Firms keep low prices in order to attract the customers so to have high sales. Next stage is the growth stage that involves the positive image or experiences faced by the customers by the use of the product. It is known as the good period for the firms because high sales and profit both achieved at the same time where as the investment on advertisement lowers down which indirectly helps in achieving higher profit rates.

Next stage is the maturity stage and is the key turning point for the companies to get success or to go to decline stage. Whereas, coca cola is identified in the growth stage where competitors are in the market and huge competition arrives in which slows down the profitability at a lower rate. This is the step where company should plan a strategy where they could achieve immense profit and reduce the risk of going into the decline stage. Decline stage is described as the stage where company leaves making the product because of lower sales and the reduction in profitability, indeed face the loss on that particular product.

Discussion and Analysis

In defining Coca Cola, It is at the maturity stage which lasts longer than ...