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There are four phases to every product life cycle - Introduction, Growth, Maturity and Decline.
The PLC is a graphical representation of a company's and profits made from a product over an arbitrary length of time.
The product sales process is made up of a number of phases, each with its own set of challenges, prospects, and roadblocks.
The company's profit, and hence market value, increases and decreases at various times during the product's life cycle.
The PLC is a model that depicts the various phases a product goes through from its birth in the market to its demise or withdrawal.
Stages of Product Lifecyle
Introduction
The stage of introduction is assigned to a new product when it enters the market.
A high-value in the lifecycle of the product is observed after its launch. It does not guarantee or ruin the product's success.
At this point, businesses can gain a feeling for consumers' reactions to the product, whether they like it and how successful it will be.
It is also frequently a hefty expenditure for the firm, since there's no assurance that the product will make enough money on its own to pay for itself.
1. Introduction Stage – Example
Lego’s new $400 lion knights’ castle
Last year, Lego came up with a promise that its 90th anniversary would be an unforgettable one as the company has committed to reintroduce one of its classic themes (such as Space, Castle, or Pirates) alongside a new and adult-grade Lego set.
To start, Lego has announced the Galaxy Explorer, a $100 more expensive version of the original iconic Lego spacecraft that is available to pre-order now.
Second, the Lion Knights' Castle is being revealed, which — with a retail price of $400 and 4,514 pieces
2. Growth
Customers start to interact with the product and subsequently acquire it at a higher rate by this time.
The concept of the product is established, and it becomes more popular, resulting in greater sales
Competitors become aware of the product, its position in the market, and how rapidly it pulls revenue.
As a result, the product opens up new markets. The product is significantly updated in this stage to improve its capabilities and features.
Growth Stage – Example
The advancement of electric transportation exhibits more of a growth stage of the product life cycle.
While the electric car is not significantly new, the advanced innovations which brands like Tesla have made in recent years are still consistently modifying with recent developments in the electric car market. This indicates its growth phase.
3. Maturity
When a product reaches maturity, sales typically drop or even cease. This indicates that the market is becoming saturated.
Competition in terms of price may be experienced at this point, implying declining margins as prices fall due to external factors such as competition or reduced demand.
At this point, marketing efforts are focused on repelling competition, and businesses will create new or modified goods to appeal to a different demographic.
The maturity stage of a product's life cycle lasts for a certain duration, depending on the product. Coca-Cola and Pepsi are two brands that take the maturity phase rather slowly.
Maturity Stage – Example - Apple
According to a report from Bloomberg's Mark Gurman, Apple is preparing to release a slew of new devices between now and the beginning of 2023.
There will be four iPhone 14 models, three new iPad Pros, three updated Mac M3s with faster processors and better graphics, one pair of AirPods Pro headphones, a new HomePod, and an improved spec-boosted Apple TV.
Apple showed two new Macs with M2 chips at its most recent Worldwide Developers Conference (WWDC).
Gurman added that the M3 processor is already in development and will likely appear in the 13 and 15-inch MacBook Air models next year.
Apple will release upgraded 11-inch and 12.9-inch iPad Pro versions with M2 processors later this year, as well as a larger iPad between 14 and 15 inches "in the next year or two."
4. Decline
Despite the fact that firms try to keep their product alive as long as possible in this stage, decline is inevitable for every product.
Sales of the firm's product drop significantly, and customer behavior towards the brand changes owing to reduced demand.
The company's product market share drops, and competition causes sales to fall.
Profit will turn out to be more challenging for production or distribution instead of sales and growth.
Decline Stage – Example - iPod
Our music listening habits were changed by the iPod. It helped turn Apple into one of the world's biggest companies.
The iPod was Apple's biggest product. But now, it is no longer found anywhere.
Time Stamps
0:00 Introduction to the Product Life cycle
0:16 Understanding Product Lifecycle & Strategies
1:00 Stages of Product Lifecycle
6:00 Product Lifecycle – Conclusion
