*3.1.1. Strategies in the introductory stage*

goes to show that product management plays a major role in determining the length of a products life cycle. A product can follow a pattern known as **growth-slump-maturity pattern**. This kind of pattern usually encounters a rapid growth initially but later in the life cycle sales decline with a stabilization at a certain level. One of the examples of such product in Nigeria is the Globacom mobile communication services which experienced a very high sales volume

The **cycle-recycle pattern** depicts a two-phased product life cycle. At the initial phase, a product goes through the ideal stages probably up to decline stage. But after using some strategies to reinvigorate and re-launch the product in the market, it starts another life cycle and depending on how it is managed, it may stay longer or shorter in the market. A good example here is Maclean toothpaste in Nigeria, which went out of the market before it was later reintroduced into the Nigerian market as a new product thus starting a new life cycle entirely. Another common pattern is called **scalloped pattern**. This is where sales enjoy a succession of growth periods based on the discovery of new product characteristics, uses, or users [7]. Omo and Maggi cube brands in Nigeria show a scalloped life cycle because of the way each of these brands is managed for a long period of time. **Figure 2** illustrates the life cycle patterns.

Product management is a unique function [6]. It is an important area in marketing because it paves the way for sustainable product performance and profitability for companies. Bjernulf and Billgren define product management as "the task that consist of product planning (making sure that the right product is offered), product marketing (enabling the product to reach its potential market), product strategy (the guide for product value delivery over the life cycle), and creating insights (understanding legacy, ecosystems/markets and driving forces)" [8]. Haines and Ausura also define it as a strategic and tactical management of products which

at introduction but slumped down and stabilizes presently.

**Figure 2.** Other product life cycle pattern. Source: [7].

20 Product Lifecycle Management - Terminology and Applications

**3. Product management**

The nature and characteristics of the introductory stage have been discussed earlier in this chapter. Therefore, the main challenge in this stage is that when a new product is launched, there is typically small market which translates into low sales. There is high cost associated with research and development, marketing, and promotion. These costs notwithstanding, most companies will see negative profits in this stage with limited competition especially if the product is entirely new in the market.

*3.1.4. Decline stage strategies*

The key focus here is to be able to harvest the declining product by offering cheaper products, selling to the laggards' market segment that is the last to adopt an innovation. Firms can also offer discounts and other promotional activities to increase sales in the short run. In the long run, a company can think of entering a new market with the existing product, product modification or even selling the product in foreign market thereby starting a new life cycle entirely. However, poorly managed product cannot withstand the harsh conditions of this stage which gives organization no option other than to phase the affected product out of the market. To do this, a company should establish a product review committee consisting of members from marketing, finance, engineering, production, and research and development to study the performance of a declining product [11]. After the review, the team can then recommend a product or products that can be built through re-investment, those to harvest, hold, or divest from the portfolio. Therefore, decision on phasing out a product should not be taken haphazardly in a rush; rather, it should be based on an informed decision. Consequently, the product life cycle curve needs to be applied with a certain amount of care, even though it is still a useful model which provides businesses and their marketing departments with the opportunity to

Product Development and Management Strategies http://dx.doi.org/10.5772/intechopen.80345 23

It is equally important for companies to appreciate the significance of product mix and product line in the product management discourse. This is because of the relevance of the two concepts in determining the level and complexity of managing a product portfolio. A product mix is the set of all products and items a particular company offers for sale. It is the total product portfolio that a company manages. While a product line is a group of closely related

**Retail banking Corporate banking e-Business Private banking** Jaiz saving acct Jaiz Corporate Acct. Jaiz Online Jaiz Premium Jaiz current acct Corporate saving Jaiz Mobile Investment Acct

plan ahead and be better prepared to meet those future challenges.

Jaiz salary acct Domiciliary Acct Point of Sales (POS)

Jaiz Kids acct Working Capital acct Jaiz pay Jaiz Tier one acct Project Financing SMS Banking Jaiz Tier two acct Real Estate Financing Jaiz just Top-up Personal Finance Service Lease Verve cards Rental Finance Import Finance Master cards

Medical Finance Export Finance

**Table 1.** Jaiz Bank's product mix.

Education Finance Jaiz Travel Finance

Source: [12].

**3.2. Product mix and product-line analysis**

A company can adopt any of the four product introduction strategies; rapid skimming strategy using high promotion with higher initial price, rapid penetration strategy (involving high promotion with low price), slow penetration strategy (using low promotion with associated lower price), and slow skimming strategy (involving low promotion with higher initial price). Each of these strategies is built upon the objectives of the company of either market penetration or market skimming, i.e., higher profit. This, in turn, depends on how price sensitive the market is. In any case, it is always better to adopt penetration strategy in order to encourage more product adoption which produces higher sales volume.

#### *3.1.2. Growth stage strategies*

At this stage, brand managers have to effectively manage the challenge of increased competition as new manufacturers seek to benefit from a new, developing market, and its resultant effects. In response to the growing number of competitors that are likely to enter the market during the growth phase, manufacturers tend to lower their prices in order to achieve the desired increase in sales. Marketers should also change the focus of their promotion from product awareness to brand preference which will help to increase the size of the market and sharp increase in sales.
