2. A Product Life Cycle is the amount of time a product goes from being introduced into the market until it's taken off
the shelves. The concept of product life cycle (PLC) concerns the life of a product in the market with respect to
business/commercial costs and sales measures. The product life cycle proceeds through multiple phases, involves many
professional disciplines, and requires many skills, tools and processes.
PLC management makes the following three assumptions:-
Products have a limited life and thus every product has a life cycle.
Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller.
Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each
life cycle stage.
PRODUCT LIFE CYCLE
3. STAGES OF PRODUCT LIFE CYCLE
There are four stages in a product's life
cycle:-
Research
Introduction
Growth
Maturity
Decline
Research
4. PRODUCT LIFE CYCLE- RESEARCH
A manufacturer must be a future thinker. They need to do research first before introducing the product in the
market about the consumer behavior including consumer’s tastes and preferences. The complete success of
the product totally depends upon the behavior of consumers. The manufacturer should keep each point in
the mind while making the product as the slight discomfort can lead the consumer shift to the rival
manufacturer, which may lead to decrease in demand of the goods or services.
5. PRODUCT LIFE CYCLE- INTRODUCTION
With the product fully developed, it’s ready to introduce to the market. At this first stage of the product life
cycle, businesses must establish branding and grab attention. The market might be wary about the product’s
uses or quality. This must be addressed with a solid product market strategy to highlight strengths, building
user trust. You might attract attention with special offers or discounts to entice consumers to try the new
product. You’ll also need to find distribution models to get your product to market at this stage. They need to
prepare budget for higher marketing costs at this stage than the others, potentially reaching out to investors
for aid.
6. EXAMPLES OF PRODUCT LIFE CYCLE:
INTRODUCTION
Self-driving Cars
Self-driving cars are still at the testing stage, but
firms hope to be able to sell to early adopters
relatively soon.
7. Once your product’s been introduced, it enters the growth stage of the product life cycle. This looks at ways
to increase sales figures and distribution channels. There better ways to get your product to its target
audience. Are there any complimentary services you could provide to boost sales? While the introductory
stage focuses on marketing to a select core, at this stage you should be reaching out to a wider audience to
grow your market share. Funding might still be provided by lenders or investors at this stage, although the
product is beginning to increase sales revenue.
PRODUCT LIFE CYCLE- GROWTH
8. EXAMPLES OF PRODUCT LIFE CYCLE: GROWTH
Electric Cars
Tesla Model S is in its growth phase. Electric cars
still need to convince people that it will work and
be practical. As there are more electric charging
points and more people adopt, it becomes easier
to sell to those who are more of new technology
like electric cars.
9. PRODUCT LIFE CYCLE- MATURITY
By this point the product is well established and both production and marketing costs are reduced for greater
profit. The danger here is that your audience will already be on the hunt for the next new and shiny thing, so
you need to hold their attention by offering discounts, adding new features, and using incentives to increase
customer loyalty. At this stage of marketing, promotions should focus on how your established, mature
product is better than new products released by your competitors.
10. EXAMPLES OF PRODUCT LIFE CYCLE: MATURITY
Ford Focus
The Ford Focus is a well-established car. It has a
good brand reputation and has reached its peak
level of market penetration. It would be difficult
to gain a significantly greater market share.
11. Finally, the product enters its natural period of decline. Whether the technology has become obsolete or it’s
simply fallen out of fashion, you need to find ways to breathe new life into the product. This could include
finding new uses or features, or slashing production to increase demand as it becomes rarer. In many cases, it
makes the most financial sense to sell production rights or discontinue the product altogether.
PRODUCT LIFE CYCLE- DECLINE
12. EXAMPLES OF PRODUCT LIFE CYCLE: DECLINE
Old Media Products
Products like typewriters, videocassettes etc. are
deep in their decline stages and in fact are almost
or completely retired from the market.
