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After entering the mature stage of the product life cycle, the product has been known to consumers in the market, occupying a certain market share, and sales volume has been relatively stable for a considerable period. Sales and profits of mature products reach the highest peak of the entire product life cycle. A large number of consumers are repeat purchases, and only a small number of lagging consumers entered the market. Several consumers will think of buying similar new products. The product sales growth rate will be equal to zero, and later this period may slowly decrease, and the market is becoming saturated. The mature period shows that this stage is the most profitable phase explained by the profit curve. The period of greatest contribution to the enterprise and the threat of aging products and overproduction forces enterprises to adopt the most effective competitive means to maintain market share, leading to the most intense market competition. This stage may last for a long period as in the case of many products with long-run demand characteristics. But sooner or later, demand for the product starts declining as new products are introduced in the market. Product differentiation, identification of new segments, and product improvement are emphasized during this stage.
To reach this objective, several product life cycle strategies are available. Although many products in the maturity stage seem to remain unchanged for long periods, most successful ones are adapted constantly to meet changing consumer needs. The reason is that the company cannot just ride along with or defend the mature product – a good offense is the best defense. Therefore, the firm should consider modifying the market, product, and marketing mix. Modifying the market means trying to increase consumption by finding new users and new market segments for the product. Also, usage among present customers can be increased. Modifying the product refers to changing characteristics such as quality, features, style, or packaging to attract new users and inspire more usage. And finally, modifying the marketing mix involves improving sales by changing one or more marketing mix elements. For instance, prices could be cut to attract new users or competitors’ customers. The firm could also launch better advertising campaigns or rely on aggressive sales promotion. This stage may last for a long period as in the case of many products with long-run demand characteristics. But sooner or later, demand for the product starts declining as new products are introduced in the market. Product differentiation, identification of new segments, and product improvement are emphasized during this stage.
Definition of Coca-Cola Company Product Maturity Period. Since its beginning in the spring of 1886 Coca-Cola has become the most popular and biggest-selling soft drink in history, as well as the best-known product in the world. The Coca-Cola Company is the world's leading manufacturer, marketer, and distributor of non-alcoholic beverages in the world. During the maturity stage, products usually go through a slowdown in sales growth. According to Coca-Cola's 2001 annual report, sales have increased by 1.02% compared to last year. This percentage has no comparison to the high level of growth Coca-Cola enjoyed during its growth stage. Currently, Coca-Cola is in the maturity stage due to its solidity and capability of keeping a large and loyal group of stable customers.
The company has traveled a longer period in the maturity stage than all other stages. According to the various research methods of product life cycle division and the discussion, this article uses a logical growth curve to simulate the product life cycle curve to define the product life cycle stage of this product, Coca-Cola. Through market research, the author sales data of Coca-Cola from 2002 to 2019 as shown in Table 4.1:
As can be seen from the predicted values in Table 4.1, for existing products and current market share status, Coca-Cola sales.
The life cycle interval of the obtained product is: the introduction period 2002-2005, the growth period 2005-2010 the mature period 2010-2016, recession period 2016-2028.
Coca-Cola's mature period advertising strategy description. Advertising positioning strategy. As the world's major beverage brands have entered China, the Chinese beverage market has formed all-imported models and joint ventures.
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