Product Life Cycle and Retail Strategy
An application of an old tool
Where in the PLC is a product?
 

The Product is in the Introductory Stage
Strategy:  How does it blend with assortment?
Consumer: Innovative? Do they know about it?
Goal: Encourage trial, create awareness
Promotion: Free samples
Price: penetration or skimming
Location: In front, end caps
 

Product is in the Growth Phase
Strategy: consumer appeal
New brands are being introduced
Consumer: trial and repeat? learning
Goal: search and selection, preference
Promotion: feature variety, comparative attributes
Price:  competitive
Location: move to permanent section in store
 

Maturity Phase
Strategy: track profit/sq ft
Eliminate, change?
Consumer: comparisons
Goal: Staples, reminders
Promotion: weekly specials
Price: deals, premiums
Location: usual location,
Seasonal events
 

Decline Phase
Strategy: drop from assortment, change, loyal customers?
Consumer: is it expected to be there?
Goal: phase out, new use?
Promotion: remind, new use?
Price: low
Location: where expected to be
 

Seasonal Items
Determine expected products
Feature with other seasonal goods
Consider discounting to clear remaining merchandise