Product life cycle stages examples. What is Product Life Cycle? Definition, Stages & Examples 2022-12-08
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The product life cycle refers to the stages that a product goes through from its development to its retirement. Understanding the product life cycle can help businesses make informed decisions about the development and management of their products. There are four main stages of the product life cycle: introduction, growth, maturity, and decline.
Introduction: This is the first stage of the product life cycle and it involves the development and launch of a new product. During this stage, the product is introduced to the market and efforts are made to create awareness and generate demand for it. The introduction stage can be expensive for a company as it involves significant investment in research and development, marketing, and production.
Growth: In the growth stage, the product begins to gain traction and demand increases. This is a critical stage for the product as it is important for the company to meet the increasing demand while also maintaining the quality of the product. The company may also consider expanding its distribution channels and increasing production to meet the growing demand.
Maturity: The maturity stage is the point at which the product has reached its maximum market penetration and demand begins to level off. During this stage, the focus shifts from marketing and sales to cost management and profit maximization. The company may also consider introducing new features or variations of the product to maintain consumer interest.
Decline: The decline stage is the final stage of the product life cycle when demand for the product begins to decline and sales start to decline. This can be due to a variety of factors such as changing consumer preferences, the introduction of new competing products, or the product becoming outdated. At this stage, the company may consider retiring the product or repositioning it in the market to try to extend its life cycle.
Examples of products at different stages of the product life cycle include:
Introduction: The introduction of the iPhone was an example of a product in the introduction stage. Apple invested heavily in marketing and production to create awareness and generate demand for the new product.
Growth: The growth stage can be seen in the popularity of video streaming platforms such as Netflix. As demand for streaming services has increased, Netflix has continued to invest in new content and expand its distribution channels to meet the growing demand.
Maturity: The market for personal computers is an example of a product in the maturity stage. While demand for PCs has leveled off in recent years, companies like Dell and HP continue to introduce new models and features to maintain consumer interest and compete in the market.
Decline: Kodak film is an example of a product in the decline stage. As digital photography has become more popular, demand for film has decreased and Kodak has struggled to compete in the market.
In conclusion, the product life cycle is a useful tool for businesses to understand the stages that a product goes through from its development to its retirement. Understanding the product life cycle can help businesses make informed decisions about the development and management of their products and plan for the future.
What is Product Life Cycle? Definition, Stages & Examples
Examples of Product Life Cycle Example 1: Nokia cell phones Introduction stage Nokia, in 1992 came up with its innovative product mobile cell phones. Moreover, it helps entrepreneurs or business owners determine the right time to introduce a new product to replace the previous one. The first phase starts when a business introduces its product to consumers. The actions companies take at each stage depend on whether they're operating in the development, introduction, growth, maturity or decline phase. Consumers start accepting the products due to these efforts and sales get a boost as a result of this process. The PLC model is not especially adept at examining a range or portfolio of products as the life cycle may vary from one product to another. Either the products themselves or their related marketing strategies will shift over the life cycle of the product.
As we mentioned earlier, this classifications can be nuance is infinite ways. But Maggi bounced back. However, if your existing product cannot compete with these emerging alternatives, you will end up losing your revenue, market share and profitability. It's vital during this phase to have a solid strategy in place that determines how you plan to grow your sales, which usually happens through continued investment in marketing. Decline Stage Even though companies strive to keep the product alive in the maturity stage for the longest period possible, a decline for every product is inevitable.
What is a Product Life Cycle? (Definition, Stages and Examples)
Growth stage After 2003 Nokia attained great growth in its market. In this stage, the product advances towards obsolescence. Nokia comes up with digital handheld phones, which can be carried everywhere, and people can communicate at any place. The introduction of product extensions can prolong the maturity stage of a product. During this stage sales continue to increase but at a decreasing rate.
Product Life Cycle perfectly explained with 12 Real Examples.
Maturity Phase of the Product Life Cycle Maturity is the peak and the highest point of the cycle. This workflow often includes project management in addition to product management or product owners. Here the firm can consider the strategies of market modification and product modification. In this stage, the sales will be less than in other phases, especially because the product is finding its niche in a new market. In this article, we will discuss what is a product life cycle, what are the 5 stages of the product life cycle and what is the importance of the product life cycle. EOL involves developing an automatic repurchasing program for shops and chains that consistently sell out of NotMeat's sausages. At this point the life cycle moves to stage three; market maturity.
As product awareness spreads rapidly among consumers, sales increases exponentially. The company launched many advanced colour television models having large no. Diversification: This strategy embodies greatest risk, since both markets and products are new. However, companies still often experience negative financial results at this stage as sales tend to be lower, promotional pricing may be low to drive customer engagement, and the sales strategy is still being evaluated. You might also take the most innovative ideas to a focus group or social media groups to collect feedback from these stakeholders before heavy investment. Meanwhile, desktop computers, laptops, smartphones and tablets are all experiencing the growth or maturity phases of the product lifecycle. It is possible for a laptop division to integrate all products on one chart showing where the different platforms exist in the family regarding price points and feature sets.
During this stage, high expenditure has to be incurred on advertising and other promotional techniques. This quadrant therefore represents the lowest level of risk. Speaking of which, in what stage is your main product? High costs are involved in this stage as there is very little or no revenue and a lot more costs related to the development and introduction of the product. While it may be harder to enter a market with high barriers to entry, your product will probably have a long life cycle if it becomes established. Stages There are four product life cycles stages. Even the way Apple has developed the positioning of the iPhone has led to sustained growth.
What Is A Product Life Cycle? (Definition and Examples)
In-bound marketing is about hearing the voice of the customer and then translating customer needs into features. It traces the time from which the product is introduced in the market to when it is removed from there. On the distribution front, a company can go for selective distribution to intensive to again selective distribution in the decline stage. And then move from a brand awareness strategy to one that differentiates offerings from others in the marketplace. Easy: We use G o o g l e Trends. Companies like ITC has gone further and added additional brands in several product categories and also diversified in other businesses to sustain and enhance the business growth. Smart entrepreneurs have relied on it for decades to devise efficient marketing and sales strategies that generate the maximum revenue.
Product life cycle: definition, stages and examples
Moreover, since it was an Old Concept, its popularity grew strongly in the early stages. The combination of options provided in the Ansoff Matrix gives rise to the following broad strategies: 1. Nonetheless, the product life cycle concept helps marketing managers to plan alternate marketing strategies to address the challenges that their products are likely to face. With the new usage of the product also, the sales and profit cycle shows a different scalloped pattern like plastics, nylon and fiber. For example, when is the right moment to invest so a product explodes in the market? Under this stage, competition is almost or non-existent, prices are relatively high, markets are limited and the product innovation is not known much. As products mature, they face increased competition.
Product Life Cycle in Marketing: Stages & Examples of PLC Model
Soon the market will saturate and they will decline. The steady growth of the market introduction and development stage now turns into a sharp upturn as the product takes off. Understanding how these interact with each other can be confusing. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle. Models like N97, 5233, X2 were launched during this period. We are furthest from our area of expertise and encroaching upon the territory of a competitor, who will almost certainly have the advantages of greater market knowledge and acceptance.
Product Life Cycle 3-parameters Matrix proposed by Consuunt. Furthermore, the product life cycle also lays a product roadmap, which helps in navigating through success and recognition when executed properly. Its Product Life Cycle was almost the same as that observed in the iPad. Here, we explain different product life cycle stages along with examples. Nokia was not able to keep its product in line with technology and features as demanded by the market.
