Product life cycle stages examples. Product Life Cycle Explained: Stage and Examples 2022-10-29
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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of factors such as changing consumer preferences, the introduction of new competing products, or the product becoming outdated.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.
Product Life Cycle Different Stages with Examples
In 1999 it re-launched its original flavor, and it was back in the game with increased sales and profits. In this stage, a company aims to make consumers aware of the product. The company should always take a cue from it and formulate its marketing strategy. The Product Life Cycle describes the evolution of the Popularity of a Product from its first launch to its end. BCG Matrix A product is born, grows, declines, and dies. During this phase, BOL efforts focus on continuous improvement of manufacturing processes to keep up with demand.
Product Life Cycle perfectly explained with 12 Real Examples.
Most of the marketers withdraw from the market and some withdraw from some marketing segments. As we move out of this comfort zone, so the level of risk increases, but so do the opportunities. Looking at the product life cycle through a marketing perspective helps identify how and what should be communicated at each stage. During the decline phase, the firm generally has three options: a Maintain the product in hopes that competitors will exit. In this stage effective distribution advertising and sales promotion are considered as key factors.
Once Perfect Palettes have proven their concept and are starting to see an increase in sales, they move into their growth phase and reassess the stages of their workflow to promote growth for the company. Also, this is rarely a part time position. They buy the product; the product becomes popular and results in increased sales. This happens because the cost of production increases and the demand of the product decreases because of which the sales decreases. As a new product with a healthier composition and a similar taste enters the market, United Soda begins to see a drop in sales and enters the decline phase.
What is Product Life Cycle? Definition, Stages & Examples
The main objective of product life cycle management is to identify potential sales opportunities in each stage and establish brand identity and loyalty. This is the stage where product differentiation is key. Generally, products follow an orderly development stage that identifies customer needs, brainstorms product ideas, checks feasibility, designs the product, test markets new features, establishes product-market fit and pricing, validates the strategy, and launches the new product. The product has to face keen competition which brings pressure on prices. Market Penetration: To grow our business, we should consider ways in which we can gain more customers for our current product offering- for example, by seeking routes to alternative markets in order to reach customers we do not currently serve. A company may also refine its product by improving functionality based on customer feedback.
This may be due to several factors such as saturation, competition, decrease in demand, and even reduction in sales. Like people, products too have life cycles. This cycle of market introduction, growth, maturity, and decline may vary from product to product—or industry to industry. Manage for Sustained Earnings — Businesses with medium strength in markets of medium to low attractiveness. Example 2: BPL Televisions Introduction stage BPL came up with a television in 1980.
In the same way, its competitors are not far behind. It is important to devise unique marketing strategies for every stage of the product lifecycle. That said, on average, products are reaching the decline stage faster. It is a variation on a Product Roadmap that highlights relationships between derivatives. As far as possible, attempts should be made to postpone the decline stage. When a product is in the decline stage, the sales drop due to a change in consumer behaviour and demand.
Strategy Analytics states that the Apple company lightly raised its market share from 54% to 55% by shipping 7. It helps a marketer in preplanning the entry of a new product in a market, in prolonging the profitable stage, in meeting competition and in long-term decisions on investment on products. But if you look at the trends in key markets over the last couple of decades, even just the last few years, consumer demand for particular products can provide some very good product life cycle examples. It is like a product journey, or to refer to a more well-known example in marketing, the customer journey. New products are introduced in the market by competitors.
Product Life Cycle in Marketing: Stages & Examples of PLC Model
Understanding the distinction between cash flow and profits is crucial. Out-bound marketing is about bringing products to customers and maximizing their effectiveness in the marketplace. It means that through a product portfolio, a company can counter most of the attacks in the market. When the competition is heavy, a higher amount of money may be pooled into the market. Therefore this stage is also known as birth stage or introductory stage.
