The product life cycle comprises several distinct stages of product development characterized by rising and falling revenue. A life cycle can last weeks or years depending on the popularity of the product. The gourmet coffee industry is one such area where the popularity of the product with consumers extends its life cycle over many years. The coffee industry as whole brought in total sales in excess of $4 billion in 2011.
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Introduction Stage
The introduction stage in a product's life cycle features low sales with high retail prices for goods, high advertising costs and very selective distribution across limited markets. In the modern gourmet coffee industry, the introduction stage occurred in the years before widespread gourmet coffee chains when consumers could only purchase specialty coffee drinks and artisan coffee varietals from specialty shoppes and independent coffee houses. According to NetMBA, a business information website, the introduction stage in a product's life cycle is a period of low to negative profits due to the high costs of advertising and growing a customer base.
Coffee Growth Stage
Rapid increases in earnings characterize the growth period of a product or brand. Price can stay at its high level during this period if demand for the product remains high, or it can drop to capture more consumer attention. With gourmet coffee, the growth stage occurred during the late 1990s through the early 2000s, when chain coffee shops offering specialty coffee beverages appeared on every street corner across the United States seemingly overnight. According to Bellissimo, a specialty coffee advisory firm, the gourmet coffee industry expects solid growth until 2015, when the industry expects demand to peak.
Product Maturity Stage
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