The product life cycle encompasses the period of time from when you have an idea for a product or service is conceived, to when it is developed and brought to market, to when it is removed from the market to be replaced with another product or service.
There are four stages of a product lifecycle: introduction, growth, maturity, and decline.
Introduction: This stage is when the product is first brought to market. It can be the most expensive phase of the lifecycle because a lot us going into marketing efforts while little is being returned. This will change over time.
Growth: This is the favored stage of the lifecycle, as it is when the company is gaining positive returns. Economies of scale tip in the company’s favor. Less is needed to market while profits are rising.
Maturity: Your product is reaching its peak regarding sales and performance. This is the time to work to maintain status in the marketplace, while working to beat competitors who have joined the race. Product improvements and modifications are made during this stage to maintain the level of product success and competitive advantage.
Decline: The final stage of the product lifecycle is decline. Sales start to decline, for several reasons, including market saturation and shrinkage. The need for the product may have diminished in the consumer’s eyes.
Even though the product or service will eventually hit the decline phase, it may be possible to switch markets and find less expensive production costs to keep the product flourishing in the market as long as possible. It may also be wise to update the product and re-launch it in the market to begin the lifecycle stages all over again.
For spas, develop new facial techniques, as well as new seasonal facials, peels, or product formulations. There is also new machinery that may be purchased, such as microdermabrasion, skin tag removal, and more. All of these are considered products that each have a lifecycle.
Some products and services have long life cycles, like microdermabrasion. It is been around for years, has noticeable results, and continues to improve.
So, take a look at the products and services that the spa currently offers and identify where each of them is in its lifecycle. Consider what can be done to extend their growth or maturity stages?