• A product life cycle is the length of time from a product first being introduced to
consumers until it is removed from the market. A product’s life cycle is usually
broken down into four stages; introduction, growth, maturity, and decline.
• Product life cycles are used by management and marketing professionals to help
determine advertising schedules, price points, expansion to new product markets,
packaging redesigns, and more. These strategic methods of supporting a product
are known as product life cycle management. They can also help determine when
newer products are ready to push older ones from the market.
• According to Philip Kotler:
The PLC is an attempt to recognize the distinct stages in the sales
history of the product.
• According to William J Stanton:
The PLC concept the explanation of product from its birth to death as
a product exists in different stages & in different competitive environment.
5. INTRODUCTION STAGE
• The introduction stage is when a product is first launched in the marketplace. This
is when marketing teams begin building product awareness and reaching out to
potential customers. Typically, when a product is introduced, sales are low and
demand builds slowly.
• Usually, this phase is focused on advertising and marketing campaigns.
Companies work on testing distribution channels and try to educate potential
customers about the product.
• Low & slow sales
• High product price
• Heavy promotional expense
• Lack of knowledge
• Low profits
• Narrow product lines
7. GROWTH STAGE
• During the growth stage, consumers have accepted the product in the market
and customers are beginning to truly buy in. That means demand and profits are
growing, hopefully at a steadily rapid pace.
• The growth stage is when the market for the product is expanding and
competition begins developing. Potential competitors will see your success and
will want in.
• Rapid increase in sales.
• Product improvements.
• Increase in competitions.
• Increase in profits.
• Reduction in price.
• Strengthening the distribution channel.
9. MATURITY STAGE
• The maturity stage is when the sales begin to level off from the rapid growth
period. At this point, companies begin to reduce their prices so they can stay
competitive amongst growing competition.
• This is the phase where a company begins to become more efficient and learns
from the mistakes made in the introduction and growth stages. Marketing
campaigns are typically focused on differentiation rather than awareness. This
means that product features might be enhanced, prices might be lowered, and
distribution becomes more intensive.
• During the maturity stage, products begin to enter the most profitable stage. The
cost of production declines while the sales are increasing.
11. DECLINE STAGE
• Unfortunately, if your product doesn't become the preferred brand in a
marketplace, you'll typically experience a decline. Sales will decrease during the
heightened competition, which is hard to overcome.
• Additionally, new trends emerge as time goes on, just like the CD example I
mentioned earlier. If a company is at this stage, they'll either discontinue their
product, sell their company, or innovate and iterate on their product in some way.