Product life cycle (PLC) defines the stages that a product move through as it enters, gets established in, and ultimately leaves the market. A typical PLC includes 4 stages: introduction, growth, maturity and decline.

As a product enters the maturity stage of its life cycle, the company experiences great pressure and this pressure comes from 2 predominant sources: eroding profit margin and the fear of entering the decline stage. It becomes harder for company to maintain high profit margin since marketing cost is forced to spike up to vigorously fight against its competitors and average price drops by a substantial margin compared to the previous stages of the product life cycle. In addition, the ultimate terrifying decline stage haunts managers constantly as the market becomes more and more saturated day by day.

Fortunately, there are a few ways to elongate the maturity stage or delay the arrival of decline stage:

• Increase frequency of use
• Increase number of users
• Find new uses
• Change package sizes, labels, and/or quality
• Innovate to stimulate demand

This “Approved/ not Approved” Ducktape commercial is a perfect example of FINDING NEW USES for a long existing product. Who would expect there are that many creative ways to use tape?!

The Mercedes-Benz S Class Coupe demonstrates how a company can extend the PLC through INNOVATING TO STIMULATE DEMAND. Since its introduction in 1972, the S Class has served as a flagship sedan model for the German automaker. But now the company sparks a pool of excitement with its announcement of the new S Class Coupe. Leveraging on the premium image of the existing sedan, the new 2-door vehicle will hopefully create additional demands.