Stages of Product Life Cycle : A Comprehensive Guide in 2021

Introduction 

Let us learn about the stages of product life cycle. We are all familiar with Apple, the technology giant. The extremely profitable business that gave us things such as the iPhone and iPod. Both of these products have rapidly become must-have gadgets and have been sold phenomenally worldwide.

Today, however, iPod sales account for a small fraction of Apple’s overall revenue, yet this missing revenue has been largely replaced by sales of a new yet identical product, the iPhone. Apple was able to successfully produce an iPod killer, unlike other firms. With the future in mind, it did this, helping them to gradually hold the business. With such an approach, what will the healthcare industry learn?

The definition mentioned above is referred to as the ‘life cycle of the commodity’. In particular, it explains a series of steps in commercialization that each product undergoes when it enters the market. In this article we will learn about, plc stages, product life cycle 5 stages, maturity stage of product life cycle, the growth stage of the product life cycle, decline stage of product life cycle, introduction stage of the product life cycle, and product life cycle stages examples.

1. What is the Product Life Cycle 
2. PLC Stages
3. Product life cycle stages examples

1. What is the Product Life Cycle 

The term product life cycle refers to the length of time a product is placed on the market before it is withdrawn from the shelf by customers. A product’s life cycle is broken into four phases: launch, development, maturity, and decrease. As a factor in determining when it is necessary to raise ads, decrease costs, extend to new markets, or update packaging, management and marketing professionals use this term. Product life cycle management is called the process of strategizing ways to consistently sustain and preserve a product.

2. PLC Stages 

Product life cycle 5 stages are:

• Production: The period of product development is also referred to as the death valley.” At this stage, with no accompanying sales, costs accumulate. To create and then test their efficacy, some products require years and significant capital investments. Since the risk is high, there are few outside sources of funding. Although existing companies also fund research and development from income generated from current goods, this process is usually financed by the founder from his own personal capital in start-up companies.
• Introduction: The introduction stage is about creating a product market and building knowledge of the product. At this point, marketing costs are high as it is important to reach out to potential customers. This is also the stage where protection for intellectual property rights is obtained. To recover costs associated with the production stage of the product life cycle, product pricing can be high, and financing for this stage is usually from investors or lenders.
• Growth: In the growth stage of the product life cycle, consumers have embraced the commodity, and businesses are seeking to increase market share. There is little competition at this point for new goods, so pricing can continue at a higher level. Both demands for goods and profits are growing, and marketing is targeted at a large audience. In general, financing for this stage is still by lenders, or from growing revenue from sales.
• Maturity: In the maturity stage of the product life cycle, Sales are going to level off at mature stage. Competition is growing, so to retain market share, product features can need to be improved. Although unit sales at this point are at their peak, prices appear to decline to remain competitive. At this point, production costs also start to decline due to more productivity in the manufacturing process. At this point, businesses typically do not need additional financing.
• Decline Over: Decline stage of product life cycle Because of market saturation, high competition, and changing consumer needs, the declining stage of the product life cycle is correlated with decreasing sales. Companies have several choices at this stage: they may choose to discontinue the product, sell the manufacturing rights to another company who can compete or retain the product better by introducing new features, finding new applications for the product, or tap into new markets by exporting. This is the stage where “new and improved” will also be announced in packaging.

Demand rises when a product is effectively launched into the market, thereby increasing its popularity. These newer goods end up driving the older ones out of the market, replacing them effectively. As a new product evolves, companies begin to curtail their marketing activities. That’s because of the cost of making the commodity reduces and selling it. It can be absolutely taken off the market as demand for the commodity wanes. 

3. Product life cycle stages examples

Several brands that were American icons have shrunk and died. Better product life cycle management may have saved some of them or maybe their time had just come. Only a few examples:

In 1897, Oldsmobile started making automobiles, but in 2004, the company was killed off. General Motors concluded that it had lost its novelty with its gas-guzzling muscle-car image.

Woolworth’s had a shop in just about every small town and town in America until it closed its doors in 1997. It was the era of Walmart and other big-box stores.

In 2011, Border’s bookstore chain closed down. The Internet age couldn’t withstand that.

In all phases of the product life cycle, television program delivery has related goods to cite an existing and still-thriving industry. 

For as long as possible, many of the most popular goods on earth are suspended in the mature stage, undergoing minor changes and redesigns to keep them separated. Examples include iPhones, Ford’s best-selling cars, and Starbucks’ coffee, all of which are subject to minor variations, followed by marketing strategies designed to make consumers feel unique and special.

Conclusion

Overall, helping companies make choices about how to mature and expand in the marketplace is the principle of the product life cycle. As marketers, it is important to consider how, based on the stage in which your business is the marketing methods and strategies can shift. Products have life cycles, like humans. A product starts with a concept, and once it undergoes research and development (R&D) and is found to be viable and potentially successful, it is not likely to go forward within the boundaries of modern industry. The product is made, marketed, and rolled out at that stage.

Interested to learn all about Product Management from the best minds in the industry? Check out our Product Management Course. This 6-month-long program takes place online through live instructor-led sessions. It is the only program in India that offers the ‘Bring Your Own Product (BYOP)’ feature so that learners can build their product idea into a full-blown product, and go through an entire Product Development lifecycle. Not only this, but this is the only program in India with a curriculum that conforms to the 5i Framework. Post completion, learners receive a joint certification from the Indian Institute of Management, Indore, and Jigsaw Academy.

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