write essay on product life cycle

The 6 Stages of the Product Life Cycle [+Examples]

Published: September 14, 2023

When I was 12 years old, I used to be confused about my cousin's CD collection. Why have CDs when I could go on iTunes and listen to all my favorite songs? This is a perfect example of a product life cycle (PLC) in action.

No one wants their product to become “obsolete” and reach the end of its product life cycle. That’s why it’s important to understand what stage your product is in so you can make better marketing and business decisions.

Below, we’ll learn about the product life cycle inside and out. If you’re in a pinch, use the links below to jump straight to what you need:

What is the product life cycle?

What are the stages of the product life cycle, importance of the product life cycle, breaking down the product life cycle theory, product life cycle marketing strategies, product life cycle examples, international product life cycle, when to use the product life cycle.

The product life cycle is the succession of stages that a product goes through during its existence, starting from development and ultimately ending in decline. Business owners and marketers use the product life cycle to make important decisions and strategies on advertising budgets, product prices, and packaging.

In the marketing industry, the typical depiction of the product life cycle only has four main stages — Introduction, Growth, Maturity, and Decline. At HubSpot, we agree that these are vital for a product, but the two stages “Development” and “Decline” aren’t nearly covered enough.

This phase can last for a long time, depending on the complexity of the product, how new it is, and the competition. For a completely new product, the development stage is particularly difficult because the first pioneer of a product isn’t always as successful as later iterations.

Before full-scale production, the product may be released in a limited market or region for testing purposes. This allows companies to assess market acceptance, gather user feedback, and make necessary adjustments before a wider launch.

Free Product Life Cycle Template

Free templates to ensure that your whole team is aligned for your next product launch.

• Product Launch Template
• Product Roadmap Template
• Sales Plan Template

Download Free

All fields are required.

You're all set!

Click this link to access this resource at any time.

2. Introduction

The introduction stage happens when a product is launched in the marketplace. This is when marketing teams begin building product awareness and targeting potential customers. Typically, when a product is introduced, sales are low and demand builds slowly.

In this phase, marketers focus on advertising and marketing campaigns. They also work on testing distribution channels and building product and brand awareness.

This stage is crucial because companies have the opportunity to shake up the status quo and capture the attention and loyalty of early adopters. The positive experiences and word-of-mouth recommendations from these early customers can influence the broader target market and accelerate product adoption.

Some examples of products currently in the introduction stage include:

• Generative AI
• Self-driving cars
• 3D televisions

Ultimately, the success of this stage sets the foundation for the product’s future growth and success in subsequent stages of the product life cycle.

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. This momentum is crucial for sustaining business operations, funding further product development, and generating returns on investment.

As companies scale, they can benefit from lower per-unit production costs, improved supplier relationships, and optimized distribution networks.

However, there are some challenges that come with the growth stage. As the market for the product expands, competition grows. Potential competitors will see your success and will want in.

Some products that are currently in the growth stage are:

• Smartwatches
• Electric cars

During this stage, it’s important to keep attracting new customers and solidify your brand image so you can stay ahead of the competition.

4. Maturity

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 the growing competition. Streamlining production processes, negotiating favorable supplier contracts, and optimizing distribution networks also become important considerations.

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.

• Smartphones
• Video game consoles

5. Saturation

During the product saturation stage, competitors have begun to take a portion of the market and products will experience neither growth nor decline in sales.

Typically, this is the point when most consumers are using a product, but there are many competing companies. At this point, you want your product to become the brand preference so you don't enter the decline stage. To achieve this, you’ll want to focus on providing exceptional service and building strong relationships with your customers.

In a saturated market, innovation also becomes essential to stay relevant. Businesses must continuously invest in research and development to improve products and offer new features. Failure to do so may lead to product obsolescence and loss of market share.

Some examples of products in the saturation stage are:

• Streaming services
• Breakfast cereals
• Soft drinks

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.

Decline also occurs when products become outdated or less relevant as newer technologies enter the market. Consumers may turn to more advanced options, rendering the declining product less desirable.

If a company is at this stage, it'll either discontinue its product, sell the company, or innovate and iterate on its product in some way.

Here are a few examples of products in the decline stage:

• CDs and cassette tapes
• Landline telephones

The best companies will usually have products at several points in the product life cycle at any given time. Some companies look to other countries to begin the cycle anew.

The product life cycle is important because it informs an organization’s management and decision-makers how well a product is performing and what strategic actions it will take to succeed. This helps companies allocate resources like staff, budgets, shows which products should be prioritized, and where the company should innovate next.

Other benefits of using the product life cycle include:

• Make better marketing investments and decisions
• Easier to make long-term plans
• Allows for better decision making with accurate information on performance
• Easier to streamline current processes within your company

Product Life Cycle Limitations

While using the PLC method certainly helps stakeholders plan, it does have limitations. The cycle breaks down performance over several stages, but unfortunately there is no way to tell how long each stage will last.

Complicating things further, not all products will move through these stages at the same pace. For example, a product may take longer to decline than others. Plus product managers run the risk of not dedicating enough effort and resources into a particular product if they think the product will decline, creating planned obsolescence – even if customers still use it.

Free Product Go-to-Market Kit

In the late ‘60s, Harvard Business School professor Raymond Vernon developed this marketing theory in response to an economic model that failed to account for trends present in international trade – that’s why it was originally called the international product life cycle theory.

It stated that products developed in an international market had three phases:

• New product
• Maturing product
• Standardized product

Here’s a quick breakdown of his theory.

Vernon theorized a new product would perform best in its country of origin to keep manufacturing and production costs low. Once the product gained demand, companies could begin exporting to other countries and continue building local production plants in each new location.

Having these local plants would offer the flexibility to make changes to the product without incurring huge costs.

The standardized phase would involve an influx of competitors, which would lead the company to focus on driving down production and manufacturing costs to remain competitive. As the market becomes saturated and a new product gets introduced, the company loses its relevance in its home country and shifts gears to create something new, with the cycle beginning again.

Since then, the product life cycle theory has evolved to focus less on geography and more on marketing. Let’s dive into it next.

You can use this template to map out your own product's life cycle phases.

Download the Free Product Life Cycle Template

Now that we’ve discussed the different stages of the product life cycle, let’s explore how to market products in each stage.

Development Stage Marketing Strategy

While marketing typically begins in the introduction stage, you can begin to build “buzz” around your product by securing the endorsement of established voices in the industry.

You can also consider a limited release of the product to a select group of customers or in a specific market segment. This exclusivity can create a sense of anticipation and urgency among potential buyers.

Then, you can use the feedback from the limited release to publish early (and favorable) consumer research or testimonials. Your marketing goal during this stage is to build upon your brand awareness and establish yourself as an innovative company.

Introduction Stage Marketing Strategy

This is where the fun begins. Now that the product is launched, you can actually promote it using inbound marketing and content marketing .

Consider collaborating with influencers or industry experts who have a strong following and influence in your target market. Encourage them to review and promote your product through blog posts, vlogs, social media posts, or sponsored content. Their endorsement can help generate credibility and reach a wider audience.

Education is vital in this stage. If your marketing strategies are successful, the product goes into the next stage — growth.

Growth Stage Marketing Strategy

During this phase, marketing campaigns often shift from getting customers’ buy-in to establishing a brand presence so consumers choose them over developing competitors.

One way to do this is by allocating resources to digital marketing channels like social media advertising, search engine optimization (SEO), content marketing, and influencer partnerships. Then, leverage data analytics to target and reach your ideal customers effectively.

Additionally, as companies grow, they'll begin to open new distribution channels and add more features and support services. Consider partnering with retailers, entering new markets, or exploring e-commerce platforms to reach a wider customer base. In your strategy, you’ll advertise these as well.

Maturity Stage Marketing Strategy

When your product has become a mature offering, you may feel like you’re “sailing by” because sales are steady and the product has been established. But this is where it’s critical to establish yourself as a leader and differentiate your brand.

Consider sharing valuable and educational content, such as blog posts and industry insights, to position your brand as an authority. Educate potential customers about the benefits and value they can gain from your product.

Continuously improve upon the product as adoption grows, and let consumers know in your marketing strategy that the product they love is better than it was before. This will protect you during the next stage — saturation.

Saturation Stage Marketing Strategy

When the market has become saturated, you’ll need to focus on brand awareness and differentiation.

Identify specific customer segments within your market and tailor marketing efforts to appeal to their specific needs and preferences. Refine your messaging and positioning to resonate with each segment, allowing for a more targeted and efficient marketing approach.

You’ll also want to focus on retaining and strengthening relationships with your existing customers. Consider creating a personalized customer service experience and introducing new product features, loyalty programs, packaging options, or bundling with complementary products.

Competition is highest at this stage, so it’s critical to leave no doubt regarding the superiority of your product.

If innovation at the product level isn’t possible (because the product only needs minor tweaks at this point), then invest in your customer service and use customer testimonials in your marketing.

Decline Stage Marketing Strategy

While companies would want to avoid the decline stage, sometimes there’s no helping it — especially if the entire market reached a decline. In your marketing strategy, you can emphasize the superiority of your solution to successfully get out of this stage.

To extend the product life cycle, successful companies can also implement new advertising strategies, reduce prices, add new features to increase their value proposition, explore new markets, or adjust brand packaging.

Unfortunately, not every company is successful at pivoting their product out of the decline stage. If the product is obsolete or financially unviable, it may be best to plan for an orderly exit from the market.

Now that we’ve gone through stages and history, let’s review some real-life examples of them in action.

• The Typewriter
• Floppy Disk

Let’s follow the product life cycle of popular products that have since reached the decline stage.

1. The Typewriter

The typewriter was the first mechanical writing tool — a worthy successor to pen and paper. Ultimately, however, other technologies gained traction and replaced it.

• Development: Before the first commercial typewriter was introduced to the market, the overall idea had been developed for centuries, beginning in 1575.
• Introduction: In the late 1800s, the first commercial typewriters were introduced.
• Growth: The typewriter quickly became an indispensable tool for all forms of writing, becoming widely used in offices, businesses, and private homes.
• Maturity: Typewriters were in the maturity phase for nearly 80 years, because this was the preferred product for typing communications up until the 1980s.
• Saturation: During the saturation stage, typewriters began to face fierce competition with computers in the 1990s.
• Decline: Overall, the typewriter couldn't withstand the competition of new emerging technologies, and eventually the product was discontinued.

Skipping forward to the 21st century, we see the rise and fall of Vine, a short-form video-sharing app that was the source for many memes at its peak but eventually declined due to other platforms.

• Development: Vine was founded in June 2012 and mainly competed with Instagram.
• Introduction: The app was introduced to the public in 2013. Its differentiating factor was its short-form video format — users had only seven seconds to film something that was hilarious, absurd, or a mixture of both.
• Growth: Only two years after its release, Vine had over 200 million active users. Its popularity led to the advent of the phrase “Do it for the Vine.”
• Maturity: Because it was only in the market for a few years, Vine never reached the maturity stage. While adoption was high, it was still a fairly new app.
• Saturation: Vine competed in an already saturated market. Instagram, Snapchat, and YouTube were the pre-eminent names in their category, and Vine soon started to decline in use.
• Decline: When Musical.ly was introduced, Vine lost a large amount of its user base and shut down. It was succeeded by Byte, a similar short-form video-sharing platform, but none of these have been able to surpass TikTok, which launched months after Vine’s end in 2016.

3. Cable TV

Remember the days of switching TV channels to find what to watch? I do — and they feel distinctly like something of the past. While cable TV is still around, it’s safe to say that it’s nearing the decline stage.

• Development: Cable TV was developed in the first half of the twentieth century. John Walson has been credited with its invention.
• Introduction: The first commercial television system was introduced in 1950, and by 1962, the technology saw the first hints of growth.
• Growth: After a decades-long freeze on cable TV’s development (due to regulatory restrictions), the technology began gaining traction, and by 1980, more than 15 million households had cable.
• Maturity: Cable TV matured around the 1990s. Around seven in ten households had cable.
• Saturation: The start of the 21st century saw an oversaturation of this technology, and it also started to compete with other modern developments such as on-demand services and high-definition TV (HDTV). While the internet was still in its nascent stages, it would soon gain on cable TV as well.
• Decline: From 2015 onwards, cable TV experienced a marked decline . Online video streaming services such as Netflix and Hulu have taken precedence — and this trend is set to continue.

4. Floppy Disk

This relic was once a popular and convenient way to store and share data between computers. I barely understood what they were growing up, and it astounds me to think of the very existence of cloud data sharing and other mass memory storage means.

• Development: The first floppy disk was developed in 1970 by IBM engineers. It was an 8-inch flexible magnetic disk in a square case with 2MB storage capacity.
• Introduction: It was introduced in 1971 and largely became known as the only way to transfer or store data.
• Growth: The floppy disk was majorly used in the 1980s-1990s.
• Maturity: Sold well in the market during the 1990s. Improving with time, it could hold 200MB of storage.
• Saturation: Major competitors emerged at the beginning of the 21st century. The invention of USB cables, external hard disks, and CDs gave people options to store their data.
• Decline: The floppy disk faced a major decline up to Hewlett-Packard stopping production for the disk in 2009. The storage capacity for other products in the market grew to be more efficient. Data storage evolution has grown to the point where floppy disks are simple relics.

Not all products need to face the decline stage. Companies can extend the product life cycle with new iterations and stay afloat as long as they have several products at various points of the product life cycle.

The international product life cycle (IPL) is the cycle a product goes through in international markets. As products begin to mature and companies want to avoid the decline stage, they'll typically begin to explore new markets globally.

When products reach mass production, manufacturing and production shift to other countries as well.

The international product life cycle stages are identical to that of a normal product life cycle. The development stage looks different, however, because local customs and regulations can affect how long it takes to bring the product to a new marketplace.

However, once you lay the groundwork in a new marketplace, your competitors will be sure to follow, and the life cycle stages will continue up until saturation and eventually decline. Your option is to either expand into another market or learn from prior mistakes and innovate before the decline stage rolls around.

Next, we’ll look at when you should use the product life cycle.

Businesses use the product life cycle to achieve the following:

• Establish competitive authority. If your product is new and recently introduced to the market, you can advertise it as a new and improved alternative to an existing product. If the product is established, you can vouch for its long history of use in your branding.
• Decide on a pricing strategy . Depending on the life cycle stage your product is in, you’ll choose how to price the product. A new product may be priced lower to entice more buyers, while a product in the growth stage can be priced higher.
• Create a marketing strategy . Your product life cycle stage will determine which strategy to pursue. Maturity and audience knowledgeability play a big role in the type of content you publish on your site and social media profiles.
• Respond before the product begins its decline. There’s no worse feeling than watching your product slowly become obsolete or be displaced by a competing product. By keeping the life cycle stages in mind, you can create a strategy that keeps you ahead of the curve as you reach the saturation and decline stages.

The product life cycle benefits businesses because they can shift their wording and positioning to best market the product at the stage it is in. If your product has recently been introduced and you try to market it as a long-established solution, consumers will see right through it and trust you less as a result.

Keep Your Product’s Life Cycle in Mind

Whether you're developing a brand new product or working with a mature, well-established brand, you can use the product life cycle stages as a guide for your marketing campaigns.

Each stage will dictate how you inform your audience about the product, how you position your brand in the marketplace, and how you decide to move forward after the decline stage.

By keeping your product’s life cycle in mind, you can invest in better marketing campaigns that result in a higher ROI.

Editor's note: This post was originally published in January 2020 and has been updated for comprehensiveness.

This article was written by a human, but our team uses AI in our editorial process. Check out our full disclosure to learn more about how we use AI.

Don't forget to share this post!

Related articles.

Gen Z Buying Habits: What Gen Z Spends On & Why Marketers Need to Care

The Ultimate Guide to Product Marketing: How to Market a Product in 2024

Segmentation, Targeting, & Positioning (STP Marketing): The Marketer's Guide

Product Launch Checklist: How to Launch a Product, According to HubSpot's Experts

What Does Product Marketing Do?

Product Classification: What It Is & Its Impact on Marketing Efforts

How Benefit Segmentation Will Take Your Marketing Campaigns to the Next Level

How to Build a Product Ecosystem Buyers Will Want to Be In

9 Product Category Marketing Examples to Inspire Your Own

Product Attributes: What Marketers Need to Know

Get a free product life cycle template in our free product go-to-market kit.

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

Product Lifecycle Phases and Their Importance

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

The four fundamental stages in a product cycle include introduction, growth, maturity, and decline. All these stages are pertinent to the development of a company. The value of having a product life cycle in an organization is to ensure that the firm understands that its products have a limited lifespan (Saaksvuori 2014). Thus, the company will be forced to invest deeply in new product development for the survival of the business.

The product life cycle is important in ensuring that a firm maintains its competitive edge in the market (Niemann 2009). The product life cycle is also an important principle that manufacturers need to comprehend to make profits and survive in the business. Each stage is strategically important to an organization. The introduction stage deals with the launching of the product. During this time, the size of the market is small. Thus, the firm is not expected to make much revenue. Also, in the introduction phase, firms incur costs in research and development. Other expenses are experienced in product testing and market studies.

This stage is critical to a company as it facilitates investment in the best method to reach the consumers. In the growth stage, business experiences a steady increase in revenues from sales and profits. Additionally, the company enjoys benefits from economies of scale and profit margins. The increase in revenue would be pertinent to the respective business to invest in promotional activities (Wang 2011). The promotional activities are geared towards the maximization of the potential of the particular growth stage. Once a firm majors in a particular promotional medium, it will be able to use it next time it introduces a product in the market.

In the maturity phase, the product becomes established. In this phase, the focus of the business is to retain the market share captured (Stark 2011). In addition, a firm must devise the most appropriate competitive method to prevent the operations of its competitors. Thus, the focus shifts to marketing. The company also engages in product modifications to increase its competitive edge.

The significance of the maturity stage is that a company can determine the marketing strategies that are best to use when a product reaches maturity (Saaksvuori 2014). In the decline stage, the product has reached the final stage. In this phase, the market shrinks slowly. One reason behind the shrinkage is that the market becomes saturated with the product. Besides, clients might be switching to the closest substitutes (Giordano 2012). Not only could the consumers be switching to substitutes, but also the different types of products.

Phases in the Product cycle are evaluated based on the outcome of each phase. The phases are used to indicate the next line of action to take. For instance, the introduction phase gives a clue on how an organization is going to handle the growth phase. In the end, the level of customer satisfaction, the number of customers attracted, and the revenues realized indicate how the stages are important. The most crucial stage is the decline stage.

This stage is inevitable. Most firms counteract the repercussions of this stage by switching to cheaper markets or less-expensive production techniques (Niemann 2009). The importance of this phase is that it enables a firm to be adaptive to negative market shocks such as a decline in sales and a reduction in the number of customers. Focus on innovation makes certain that there is product achievement in the development of the other components. Also, a focused attention design-manufacturing interface is significant for less effective marketing methods.

ADNOC (Abu Dhabi National Oil Company) is a firm in the UAE that has utilized the concept of product life cycle. The firm majors in the marketing and distribution of refined products (Abu Dhabi National Oil Company 2016). The products are meant to satisfy petroleum-product users in the UAE. Once the company realized that the market was saturated with its products, it resulted in modifying them. The firm introduced different packaging of the petroleum products using branded containers (Field 2008). In addition, the company lowered the prices of the products to continue holding the attracted market share by its side.

In conclusion, it can be indicated that the product lifecycle is important to understand the growth of a firm. The cycle enables a firm to change policies and tactics to address the outcome of each stage. If a firm successfully comprehends and address each stage successfully, profits and increased sales will be realized.

Abu Dhabi National Oil Company (ADNOC) 2016. Web.

Field, F 2008, China, India and the United States: competition for energy resources . Abu Dhabi, The Emirates Center for Strategic Studies and Research. Web.

Giordano, M 2012, Product Life-Cycle Management Geometric Variations . London, Wiley. Web.

Niemann, J 2009, Design of Sustainable Product Life Cycles . Berlin, Springer. Web.

Stark, J 2011, Product Lifecycle Management 21st Century Paradigm for Product Realisation . London, Springer. Web.

Saaksvuori, A 2014, Product Lifecycle Management . Berlin, Heidelberg, Springer Berlin Heidelberg. Web.

Wang, H 2011, Green Supply Chain Management: Product Life Cycle Approach . New York, McGraw-Hill. Web.

• We Make Widgets Inc.'s Leadership Consultancy
• Business Research: Practical versus Academics
• Saint Vincent Hospital's Product Lifecycle Management
• Information Lifecycle Management Definition
• Managing the Product through Its Lifecycle (Introduction to Decline)
• Lean Thinking in Supplier Optimisation
• Big Data and Corporate Social Responsibility
• Performance Index and Quality Management Innovation
• Implementing Alternative Management Solutions
• Team Performance Assessment and Evaluation
• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2020, July 20). Product Lifecycle Phases and Their Importance. https://ivypanda.com/essays/product-lifecycle-phases-and-their-importance/

"Product Lifecycle Phases and Their Importance." IvyPanda , 20 July 2020, ivypanda.com/essays/product-lifecycle-phases-and-their-importance/.

IvyPanda . (2020) 'Product Lifecycle Phases and Their Importance'. 20 July.

IvyPanda . 2020. "Product Lifecycle Phases and Their Importance." July 20, 2020. https://ivypanda.com/essays/product-lifecycle-phases-and-their-importance/.

1. IvyPanda . "Product Lifecycle Phases and Their Importance." July 20, 2020. https://ivypanda.com/essays/product-lifecycle-phases-and-their-importance/.

Bibliography

IvyPanda . "Product Lifecycle Phases and Their Importance." July 20, 2020. https://ivypanda.com/essays/product-lifecycle-phases-and-their-importance/.

24/7 writing help on your phone

To install StudyMoose App tap and then “Add to Home Screen”

Product Life Cycle - Free Essay Examples and Topic Ideas

Product life cycle refers to the stages a product goes through from its inception to its eventual decline and discontinuation. There are typically four stages: introduction, growth, maturity, and decline. During the introduction stage, the product is launched and marketed to create awareness and generate demand. In the growth stage, sales increase rapidly as the product gains popularity and competition increases. In the maturity stage, sales growth slows as the market becomes saturated, and the product may face declining profitability. Finally, in the decline stage, sales decrease as newer products or technologies emerge, and the product is eventually phased out. Understanding the product life cycle is important for businesses to plan their marketing and product strategies, manage inventory levels, and make informed decisions about investments and resource allocation.

• 📘 Free essay examples for your ideas about Product Life Cycle
• 🏆 Best Essay Topics on Product Life Cycle
• ⚡ Simple & Product Life Cycle Easy Topics
• 🎓 Good Research Topics about Product Life Cycle

Essay examples

Essay topic.

Save to my list

Remove from my list

• Product Life Cycle Stage of Godrej Chotukool
• Pricing Strategies
• International Product Life Cycle model (IPLC) theory
• Starbucks Product Life Cycle
• Lenovo’s Product Life Cycle
• Business Success of Volkswagen Company
• ABSTRACT This paper discusses different types of silk and the life cycle
• Product life cycle and its stages
• Life Cycle Costing
• The product of life cycle
• ABSTRACT This paper discusses on the life cycle of the silkworm two
• Shipping Market Cycles
• Product Life Cycle Theory
• Assignment Product Life Cycle
• Product Life Cycle of Nutri-Grain
• Product Life Cycle of an Audi R8
• BMW’s Product life cycle
• Pasta Hut and Pizza Hut: product life cycle
• Product Lyfe Cylce of Iphone
• Product-Market Growth Matrix
• Produce a marketing strategy for a new or existing product
• New Product Launch Marketing Plan, Part II
• Product and Service
• Market Research: Method of Selling a Product
• A Compare and Contrast of the New Product Development Model
• Developing a marketing mix for a new product or service
• What Is the Right Supply Chain for Your Product
• Product Development Strategy for McDonald’s
• Product Mix and New Product Development Strategies
• Develop a Coherent Marketing Mix for a New Product or Service
• New Product Innovation Assignment Questions
• Functional Product and Innovative Product
• A favourite product, service, or organization (PSO): Piano
• Keurig: Managing a New Product Launch
• Coca-Cola Marketing Mix: Product, Place, Price, Promotion
• Product Advertising

FAQ about Product Life Cycle

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

11.8 The Product Life Cycle

• What are the stages of the product life cycle?

Product managers create marketing mixes for their products as they move through the life cycle. The product life cycle is a pattern of sales and profits over time for a product (Ivory dishwashing liquid) or a product category (liquid detergents). As the product moves through the stages of the life cycle, the firm must keep revising the marketing mix to stay competitive and meet the needs of target customers.

Stages of the Life Cycle

As illustrated in Exhibit 11.7 , the product life cycle consists of the following stages:

Introduction: When a product enters the life cycle, it faces many obstacles. Although competition may be light, the introductory stage usually features frequent product modifications, limited distribution, and heavy promotion. The failure rate is high. Production and marketing costs are also high, and sales volume is low. Hence, profits are usually small or negative.

Growth: If a product survives the introductory stage, it advances to the growth stage of the life cycle. In this stage, sales grow at an increasing rate, profits are healthy, and many competitors enter the market. Large companies may start to acquire small pioneering firms that have reached this stage. Emphasis switches from primary demand promotion to aggressive brand advertising and communicating the differences between brands. For example, the goal changes from convincing people to buy flat-screen TVs to convincing them to buy Sony versus Panasonic or Sharp .

Distribution becomes a major key to success during the growth stage, as well as in later stages. Manufacturers scramble to acquire dealers and distributors and to build long-term relationships. Without adequate distribution, it is impossible to establish a strong market position.

Toward the end of the growth phase, prices normally begin falling, and profits peak. Price reductions result from increased competition and from cost reductions from producing larger quantities of items (economies of scale). Also, most firms have recovered their development costs by now, and their priority is in increasing or retaining market share and enhancing profits.

Maturity: After the growth stage, sales continue to mount—but at a decreasing rate. This is the maturity stage . Most products that have been on the market for a long time are in this stage. Thus, most marketing strategies are designed for mature products. One such strategy is to bring out several variations of a basic product (line extension). Kool-Aid, for instance, was originally offered in six flavors. Today there are more than 50, as well as sweetened and unsweetened varieties.

Decline (and death): When sales and profits fall, the product has reached the decline stage . The rate of decline is governed by two factors: the rate of change in consumer tastes and the rate at which new products enter the market. Sony VCRs are an example of a product in the decline stage. The demand for VCRs has now been surpassed by the demand for DVDs and online streaming of content. Sometimes companies can improve a product by implementing changes to the product, such as new ingredients or new services. If the changes are accepted by customers, it can lead to a product moving out of the decline stage and back into the introduction stage.

The Product Life Cycle as a Management Tool

The product life cycle may be used in planning. Marketers who understand the cycle concept are better able to forecast future sales and plan new marketing strategies. Table 11.5 is a brief summary of strategic needs at various stages of the product life cycle. Marketers must be sure that a product has moved from one stage to the next before changing its marketing strategy. A temporary sales decline should not be interpreted as a sign that the product is dying. Pulling back marketing support can become a self-fulfilling prophecy that brings about the early death of a healthy product.

Concept Check

• What is the product life cycle?
• Describe each stage of the product life cycle.
• What are the marketing strategies for each stage of the product life cycle?

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/introduction-business/pages/1-introduction

• Authors: Lawrence J. Gitman, Carl McDaniel, Amit Shah, Monique Reece, Linda Koffel, Bethann Talsma, James C. Hyatt
• Publisher/website: OpenStax
• Book title: Introduction to Business
• Publication date: Sep 19, 2018
• Location: Houston, Texas
• Book URL: https://openstax.org/books/introduction-business/pages/1-introduction
• Section URL: https://openstax.org/books/introduction-business/pages/11-8-the-product-life-cycle

© Apr 5, 2023 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

• Any Questions?
• 080-4710-6006
• [email protected]
• School of Product
• School of Data Science
• Executive Industry Council
• Institutional Partners
• Board of Academics and Research
• Faculty & Executive Coaches
• Awards & Press
• Executive MBA in Product Leadership 18 Months | Alternate weekends on campus
• International Certificate in Product Management 5 Months | Live Faculty-Led Online
• PG Program in Product Management 12 Months | Live Faculty-Led Online
• Certified Associate Product Manager 3 Months | Live Faculty-Led Online
• International Certificate in Strategy & Leadership 5 Months | Live Faculty-Led Online
• Product Management Professional Workshop 3 Days | Practitioner Led In-Person
• PG Program in Data Science and Business Analytics 7 Months | Live Faculty-Led Online
• Executive MBA in Data Science & Technology Management 18 Months | On Campus
• MBA in Applied Data Science (Full Time) 24 Months | On Campus
• International Certificate in AI & ML 5 Months | Live Faculty-Led Online
• SCHOOL OF DESIGN
• International Certificate in UX & UI Design 5 Months | Live Faculty-Led Online
• Generative AI Product Management
• Communicating for Impact Certification
• Financial Acumen
• Data-Informed Decision Making
• Product & Digital Strategy
• DIGITAL LEARNING
• Product Management Fundamentals
• Data Science for Business Professionals

Success Stories

• The Ambassador Program at the Institute (API)
• Skill Labs Portfolio
• Refer a Friend
• Assessments
• Hire from IPL
• Free Email Courses
• Product Labs
• Career Assistance Platform
• Industry Sponsored Challenges
• Product Management Survey
• Skill Aptitude Test
• Data Science Quiz
• Certified Product Owner

Product Journey: Product Life Cycle Explained

• May 3, 2024
• product management

By Gomati Garware – Head of Product Management, TraceLink

The journey from idea to successful market launch hinges on a well-defined and compelling product vision. A good product vision serves as a guide, aligning teams, attracting stakeholders, and ensuring the creation of a valuable solution that resonates with users. Let’s delve into the key elements that constitute a strong product vision, essential for navigating the complexities of product development and achieving sustained market success.

Key Takeaways:

• A product represents an agreement between someone buying and someone selling.
• A successful product strategy depends on a well-defined framework that guides decision-making and execution throughout the lifecycle of a product. 
• Aligning product opportunities with company strategy is critical for securing support and funding.
• While focusing on continuous improvement is vital, be vigilant towards emerging market shifts and disruptive technologies.
• Prioritize product features based on customer impact, strategic alignment, technical feasibility, and risk considerations.

What is a Product Vision?

In simple terms, a product represents an agreement between someone buying and someone selling. This agreement goes beyond traditional categories like goods, services, or technology. It includes things like software, goods, technologies, platforms, and services, blurring the lines between what we consider a service or a product.

What are the Elements of a Good Product Vision?

Building a compelling product vision relies on mastering fundamental elements that ensure practicality, longevity, and market appeal. Let’s explore the key aspects that define a robust product vision in simpler terms.

1. Identifying a Valuable Problem

A solid product vision starts with recognizing a problem that is worth solving. Is this problem significant and affecting many people? Is there a real demand for a solution? Answering these questions ensures that the product idea aligns with market needs and is worth investing time and resources into.

2. Using Technology for Solutions

An important part of a good product vision is using technology effectively to create solutions. Can we realistically build the solution using available technology and expertise? Considering this helps in planning a feasible product and within the capabilities of the development team.

3. Ensuring Long-Term Sustainability

A successful product vision goes beyond immediate results—it aims to be sustainable and adaptable. Will the product remain relevant as the market changes? Is there a plan for continuous improvement and updates? Thinking about sustainability ensures that the product stays valuable over time.

4. Targeting the Right Audience

A strong product vision is tailored to meet the needs of specific customer groups. Understanding who the product is for—their demographics, behaviors, and challenges—helps in creating a focused and effective vision. Targeting the right audience increases the chances of success and adoption.

5. Assessing Business Viability

A practical product vision should also make business sense. Can the product support a viable business model? Does it align with revenue goals and cost considerations? Evaluating business viability ensures that the vision supports long-term growth and profitability.

Product Strategy Framework

A successful product strategy depends on a well-defined framework that guides decision-making and execution throughout the lifecycle of a product. Let’s delve into key elements of a strategic framework tailored to drive product success.

1. Market Analysis

Market analysis forms the bedrock of informed decision-making. Utilize surveys, data insights, and customer feedback to identify needs, assess market viability, and validate product concepts.

2. Business Planning

Translate insights from market analysis into robust business plans. Define a roadmap that outlines feature development, timelines, and strategic goals aligned with market demands.

3. Focus on Your Roadmap

Craft a detailed roadmap that serves as a blueprint for product development. Outline milestones, feature releases, and iterations to guide the product through its lifecycle.

4. Deep Analysis of Personas, Scenarios, and Product Experience

Invest time in understanding user personas, scenarios, and desired product experiences. Tailor product development to meet specific user needs and enhance the overall product experience.

5. Product Development and QA

Execute product development with a focus on quality assurance (QA). Rigorous testing ensures the product meets industry standards and user expectations.

6. Marketing Programs

Develop comprehensive marketing strategies to create awareness and drive adoption. Leverage targeted campaigns, messaging, and promotional activities aligned with market insights.

7. Sales Enablement

Empower sales teams with the knowledge and tools they need to effectively promote and sell the product. Provide training, resources, and sales collateral aligned with product features and benefits.

8. Product Operations and Support

Plan for ongoing product operations and support post-launch. Establish strategies for customer support, maintenance, and updates to ensure continued satisfaction and product longevity.

Studying Your Market

When embarking on a product journey, conducting a thorough market study is vital to pave the path towards success. Let’s break down the essential steps in this process and relate them to your envisioned product.

1. Identify Product Category

Consider whether your product falls under a new category, an existing product with updates, or a complete relaunch like transitioning from on-premises to cloud-based. Defining this category shapes your approach to market entry and customer engagement.

2. Define Target Audience (B2B or B2C)

Think about who will use your product—businesses (B2B) or individual consumers (B2C). Understanding your target audience influences product features, marketing strategies, and sales approaches tailored to specific customer needs.

3. Consider Geographical Relevance

Geography plays a crucial role in product demand and manufacturing. Pandemic experiences highlighted varying demands across regions. Analyze where your product is needed most and tailor your launch and distribution strategies accordingly.

4. Segment Your Market

Just as Honda offers luxury sedans and compact cars targeting different segments, define which market segment your product aims to serve. This clarity informs product design, pricing, and positioning strategies.

5. Conduct Competitive Analysis

Evaluate competitor strengths and weaknesses but avoid getting into a feature war. Market leaders focus on brand retention, while challengers capitalize on competitor weaknesses to differentiate effectively. Build features that address market gaps strategically.

6. Ensure Technological Feasibility

Confirm if the required technology supports your product vision. Avoid pitfalls by ensuring compatibility and availability of necessary technological capabilities. Leverage technology to enhance product performance and user experience.

Exploring the Dynamics of Opportunity and Strategy in Product Development

As we transition to the next topic, let’s delve into the critical interplay between opportunity and strategy when crafting a product. Often, product managers and leaders are inundated with ideas and demands, whether from customers, partners, or stakeholders. However, not every opportunity should translate into action—here’s why.

1. Aligning with Company Strategy

The foremost consideration in seizing opportunities is aligning them with your company’s overarching strategy. Your product strategy must harmonize with broader organizational goals to secure support and funding. 

2. Balancing Continuous Improvement with Innovation

While capitalizing on existing opportunities for product enhancement is crucial, solely focusing on incremental improvements risks overlooking disruptive market shifts. Continuous iteration is vital, but vigilance towards emerging trends and technologies is equally important to avoid being blindsided by competitors.

3. Safer Strategies: Leveraging Existing Customers

A safe strategy often involves introducing new products or features to existing customers or migrating competitors’ customers. This approach, exemplified by IBM’s “wallet-sharing” strategy, aims to deepen relationships with current customers, leveraging familiarity and trust to drive additional revenue.

4. Embracing High-Risk, High-Reward Innovation

Contrastingly, some leaders—like Elon Musk with Tesla—embrace high-risk, high-reward strategies by venturing into uncharted territories and targeting new customer segments. This path requires bold vision and tolerance for uncertainty, offering the potential for transformative impact and substantial returns.

5. Wallet-Sharing vs. Niche Segment Targeting

Consider the difference between strategies employed by tech giants. IBM’s wallet-sharing strategy focuses on expanding revenue from existing customers, while Google Maps initially targeted a niche segment—ride-hailing drivers—before scaling to broader consumer markets. Both strategies exemplify tailored approaches based on specific market dynamics.

6. Adapting Strategy to Industry and Context

The optimal strategy varies based on industry context and business objectives. Assessing opportunities against strategic parameters is essential to discern the most viable path forward. Not all opportunities are created equal; thoughtful evaluation ensures alignment with overarching goals.

7. Thoughtful Decision-Making in Product Planning

In product planning, resist the urge to pursue every requested feature indiscriminately. Instead, strategically evaluate each opportunity against defined parameters and market realities. Thoughtful decision-making yields focused, impactful product strategies aligned with long-term success.

Mastering Prioritization: A Practical Guide for Product Managers

Effective prioritization is a cornerstone of success. Balancing multiple priorities while aligning with your company’s overarching goals requires a strategic approach. Let’s delve into actionable strategies on how to prioritize effectively.

1. Aligning to Company’s Goals

Start by understanding your company’s strategic objectives. As a product manager, your decisions should always align with these goals. Identify your organization’s core priorities— revenue growth, customer acquisition, or regulatory compliance. When evaluating features or requirements, ask yourself: How does this contribute to achieving our company’s objectives? Aligning your product roadmap with company goals ensures that your efforts are impactful and aligned with broader organizational strategies.

2. Methodologies for Prioritization

Adopting robust methodologies enhances your ability to prioritize with clarity. Consider implementing the following frameworks:

• Impact vs. Effort Matrix: Evaluate features based on their potential impact on customers versus the effort required for implementation.
• Customer Feedback Analysis: Prioritize features based on customer demand and feedback. Conduct surveys, gather insights, and quantify customer requests to inform your prioritization strategy.
• Value vs. Complexity Analysis: Assess features based on the value they deliver to stakeholders versus the technical complexity of implementation. These methodologies provide structured approaches to prioritize features objectively, taking into account various dimensions such as impact, customer value, and technical feasibility.

3. Key Parameters for Prioritization

Certain parameters should guide your prioritization decisions:

• Customer Impact: Consider the magnitude of impact a feature will have on customer experience or satisfaction.
• Strategic Alignment: Prioritize features that align closely with your company’s strategic goals and market positioning.
• Technical Feasibility: Evaluate the feasibility and complexity of implementing each feature from a technical standpoint.
• Compliance and Risk: Address features that mitigate compliance risks or enhance product security and integrity.

4. Fact-Based Decision-Making

Embrace data-driven decision-making to prioritize features objectively. Gather relevant data, including customer feedback, usage analytics, and market trends. Leverage quantitative insights to inform your prioritization decisions, minimizing subjective biases. Engage stakeholders with factual evidence and metrics that support your prioritization strategy.

Jeff Bezos’ principle of “disagree and commit” underscores the importance of basing decisions on verifiable data rather than personal opinions or assumptions. Prioritize features based on factual evidence, ensuring alignment with company goals and maximizing impact.

How to Optimize Developmental Strategies

As a product leader, you face critical choices regarding development strategies that can impact the trajectory of your project. Let’s delve into key strategies for efficient development:

1. Building Within the Organization

When contemplating whether to build components internally, consider the following:

• Resource Readiness: Assess the availability of skilled personnel and technological resources within your organization.
• Control and Customization: Building in-house offers greater control over the development process and allows for customization to meet specific project requirements.
• Long-term Sustainability: Investing in internal capabilities can enhance long-term sustainability and reduce dependency on external factors.

2. Buying Components

Procuring ready-made components or APIs presents distinct advantages:

• Time-to-Market: Buying components can expedite the development process, reducing time-to-market and enabling quicker product iterations.
• Expertise Access: Leveraging third-party solutions grants access to specialized expertise and pre-built functionalities.
• Cost Optimization: Buying components can be cost-effective compared to in-house development, especially for non-core functionalities.

3. Partnering for Development

Engaging external partners for development entails strategic considerations:

• Expert Collaboration: Partnering with external firms brings specialized skills and domain expertise to the project.
• Resource Augmentation: External partnerships can supplement internal resources, accelerating development without overburdening the organization.
• Risk Sharing: Sharing development responsibilities with partners mitigates risks and enhances agility.

4. Avoiding Poor Resource Allocation

To prevent poor allocation of resources, adopt a prudent approach:

• Balanced Investment: Avoid concentrating all resources on new product development , which may compromise existing projects.
• Prioritization Framework: Implement a prioritization framework to allocate resources based on project importance and strategic alignment.
• Continuous Evaluation: Regularly assess resource utilization to reallocate resources based on evolving project needs and organizational priorities.

5. Implementing Wise Allocation

Deploying resources judiciously is key to success:

• Strategic Planning: Develop a comprehensive resource allocation plan aligned with project objectives and organizational goals.
• Flexibility and Adaptability: Maintain flexibility to reallocate resources dynamically based on project milestones and market feedback.
• Risk Management: Allocate resources wisely to mitigate risks associated with resource constraints and uncertainties.

Roadmap Vs Release Plan

As a product manager or product owner , navigating the intricacies of product development involves juggling multiple facets, including roadmap planning and release strategies. Let’s delve into the distinctions between roadmap and release plans and how they shape the trajectory of product management.

Pricing and Packaging

pricing and packaging play pivotal roles in shaping consumer perceptions and business outcomes. Here’s a closer look at key pricing approaches that businesses can leverage to optimize their offerings:

1. Subscription and Services-Based Models

Subscription-based pricing models, epitomized by platforms like Netflix, offer customers continuous access for a recurring fee. This approach fosters customer loyalty and provides predictable revenue streams, aligning well with digital services and content platforms.

2. Usage-Based Pricing

Usage-based models charge customers based on their actual usage of a product or service. Cloud computing providers like AWS exemplify this approach, where organizations pay according to their utilization of computing resources. This model is highly scalable and cost-effective for businesses with fluctuating demands.

3. Licensing and Enterprise-Based Pricing

Enterprise-based pricing structures cater to business needs by bundling comprehensive solutions. Microsoft’s licensing approach, bundling Windows with Office applications, is a prime example. Such packages streamline procurement and deployment for enterprises, offering value through integrated functionalities.

4. Per Module or Feature Pricing

For feature-rich products, pricing can be modular, allowing customers to pay for specific functionalities they require. This approach grants flexibility and cost-effectiveness, aligning pricing with the value derived from each feature.

5. Pricing Based on Impact

Some pricing strategies are contingent upon the impact or value delivered to customers. AI-enabled solutions, for instance, may adjust pricing based on the inclusion of advanced features like chatbots, reflecting the increased utility and market demand for such functionalities.

6. Estimation of Profit

Profit estimation is a critical aspect of pricing strategies, ensuring sustainable business growth. Effective pricing considers not only revenue generation but also operational costs and resource investments, aiming to maximize profitability while maintaining competitive pricing.

7. Non-IT Estimation Tools

In non-IT domains, specialized estimation tools like Eagle View facilitate accurate cost assessments for complex projects, such as solar panel installations. These tools empower businesses to make informed pricing decisions and optimize resource allocation, transcending traditional IT applications.

How to Enable Sales Success

Product managers play a crucial role in ensuring that sales teams are equipped with the tools, knowledge, and strategies to excel in their roles.

1. Readying Sales Tools for Product Promotions

A core responsibility of product managers is to ensure that sales teams have the necessary tools and materials to effectively promote products. This includes providing detailed product information, engaging presentations, and impactful demos that resonate with potential customers.

2. Strategic Focus on Pricing and Target Customers

When launching new products or exploring new markets, product managers collaborate closely with sales teams to define optimal pricing strategies and identify target customer segments. This strategic alignment ensures that sales efforts are directed toward maximizing profitability and customer acquisition.

3. Training to Understand Buying Behavior

Product managers conduct tailored training sessions to educate sales teams on customer buying behavior. By understanding the motivations and preferences of potential customers, sales teams can tailor their pitches and solutions to resonate with specific needs.

4. Customized RFPs, Presentations, and Demos

To enhance sales effectiveness, product managers collaborate with sales teams to customize Request for Proposals (RFPs), presentations, and demos. This personalized approach allows sales teams to address specific customer requirements and showcase product value effectively.

5. Generating Market Awareness

Product managers play a pivotal role in creating market awareness through targeted campaigns and initiatives. By leveraging market insights and competitive analysis, product managers equip sales teams with the knowledge needed to position products effectively in the market.

6. Focused Market Segmentation

Segmentation is key to successful sales enablement. Product managers guide sales teams in identifying and targeting specific segments of the market based on product features and customer preferences. This focused approach maximizes sales impact and customer engagement.

7. Avoiding Roadmap Discussions in Sales Channels

A critical guideline emphasized by product managers is the avoidance of roadmap discussions during sales interactions. Sales teams are encouraged to focus on current product releases and established features to align customer expectations with tangible deliverables.

Go-to-Market Strategies: Collaborating with Marketing for Product Success

The journey from development to market success depends greatly on effective collaboration with the marketing team. Product managers are not just owners of products; they are orchestrators of comprehensive go-to-market plans that ensure products reach their intended audience with maximum impact. Let us look at the key strategies for effective go-to-market planning:

1. Enabling Channel Partner Engagement

When formulating go-to-market strategies, product managers engage closely with marketing teams to leverage channel partners effectively. Whether targeting manufacturers or specific customer segments, it’s essential to ensure that marketing efforts are channeled through strategic partnerships for broader reach and impact.

2. Leveraging Strategic Events

Events are pivotal opportunities for product promotion. By aligning closely with organizational leadership, product managers can advocate for their products during significant launches and industry gatherings. These events serve as platforms to showcase new products and generate buzz within key markets.

3. Strategic Telemarketing

Strategic telemarketing, when executed ethically and with consent, can be a potent tool for reaching potential customers. Leveraging customer consent data, marketing teams can engage with interested parties directly, fostering meaningful conversations about new products and services.

4. Email Communication with Customer Consent

Email remains a cornerstone of modern marketing strategies. By leveraging customer consent data, marketing teams can communicate directly with interested individuals, sharing updates, promotions, and information about new products.

5. Over-communicating for Market Awareness

Over-communication is a deliberate strategy used to enhance market awareness. By strategically deploying advertisements and collaterals across various channels, organizations ensure that their products remain top-of-mind for potential customers.

6. Customized Marketing for Specific Customers

Tailoring marketing efforts to specific customer needs is essential for driving engagement and conversions. Product managers play a pivotal role in educating marketing teams about unique product features sought by specific customer segments, enabling more effective positioning and messaging.

Stages of a Successful Product Launch

The journey toward a successful product launch is a meticulously orchestrated process that encompasses strategic decisions, meticulous preparation, and effective execution. Transitioning from development readiness to market launch involves a comprehensive approach that leverages various tools and strategies to ensure maximum impact and success. Let’s understand the main stages of a successful product launch.

1. Business Decision/Development Decision

The inception of a product launch begins with a critical business decision. It involves evaluating market conditions, aligning with strategic objectives, and assessing readiness for development. This stage sets the foundation for the subsequent steps in the launch process.

2. Release/Campaigning

Once the product is developed and tested, the focus shifts to the release phase. This stage involves not only making the product available but also implementing a comprehensive campaign strategy. From sales enablement to go-to-market plans, this phase ensures that the product gains maximum visibility and traction.

3. Customer Zero

Implementing the “Customer Zero” concept involves internal deployment and testing of the product within the organization. This step validates product functionality and usability, providing valuable insights before external release.

4. Messaging to Targeted Personas

Crafting targeted messages tailored to specific customer personas is crucial for a successful launch. By addressing the unique needs and pain points of each persona, product managers can effectively communicate the value proposition of the product.

5. Training Materials

Preparing comprehensive training materials and documentation is essential to facilitate the smooth adoption of the product. Training materials should be meticulously crafted and verified to ensure accuracy and clarity.

6. Product Briefing

Engaging in product briefings, both internally and externally, is instrumental in building anticipation and generating interest. Product managers play a pivotal role in conveying the product’s value proposition and unique features during these briefings.

7. Social Media, Blogs, and Videos

Leveraging social media platforms, writing blogs, and creating engaging videos are effective ways to amplify the product’s reach. These channels enable product managers to showcase the product’s benefits and connect with potential customers.

8. Internal and External Events

Participating in internal and external events provides valuable opportunities to engage with stakeholders and demonstrate the product’s capabilities. Whether it’s hosting webinars or attending industry conferences, events play a crucial role in driving product awareness.

9. Actual Product Release

The culmination of the launch process is the actual product release. This milestone marks the transition from preparation to execution, backed by thorough planning and engagement across various stages.

Evaluating Product Launch Success with KPIs

Determining the success of a product launch goes beyond the event itself—it requires ongoing assessment using specific Key Performance Indicators (KPIs) that gauge various aspects of performance and impact. Let’s explore the essential KPIs that can effectively measure the success of a product launch:

Internal KPIs

• Defect Rate: This metric reflects the quality of the product release by measuring the number of defects per feature or sprint. Monitoring this rate helps ensure a high-quality product experience for users.
• Customer Support Preparedness: Assessing the readiness of customer support teams post-launch is crucial. Monitoring support call volumes and response times provides insights into product usability and customer satisfaction.
• Development Velocity: This KPI measures the efficiency of development and testing processes by comparing planned story points with actual achievements. It reflects the team’s productivity and adherence to sprint goals.
• Marketing Program Milestones: Tracking the completion of marketing initiatives ensures that sales and promotional efforts align with the product launch timeline.
• Sales Productivity: Evaluating sales metrics post-launch, such as lead generation and conversion rates, helps gauge the effectiveness of sales enablement strategies.

External KPIs

• Revenue Retention: Assessing the retention of existing revenue post-launch indicates customer satisfaction and product value.
• User Engagement: Monitoring user behavior metrics like sessions per user and new user registrations provides insights into product adoption and engagement.
• Profitability: Measuring post-launch profitability (revenue minus expenses) indicates the financial success of the product launch.
• Market Share: Tracking market share within a specific product category reveals the product’s competitive positioning and market acceptance.
• Customer Acquisition Cost (CAC): Analyzing the cost-effectiveness of acquiring new customers post-launch helps optimize marketing and sales strategies.

Analyzing Product Post-Launch

Launching a product is just the beginning. The success of a product launch depends on various factors, including market visibility, launch timing, outcomes, momentum gained, revenue generated, and metrics used to achieve goals. Let’s delve into these key aspects of post-launch analysis:

1. Increasing Market Visibility

Post-launch, evaluate whether the new product has enhanced market visibility. Measure the increase in customer base within existing markets. Assess entry into new markets or segments due to the product launch.

2. Evaluating Launch Time

Examine the efficiency and timeliness of the product launch. Assess whether the launch occurred as planned or encountered delays.

3. Analyzing Outcomes and Momentum

Understand the impact and momentum gained post-launch. Determine the level of acceptance and adoption of the product in the market.

4. Revenue Generation

Quantify the financial impact of the product launch. Track the increase in revenue attributed to the new product.

5. Utilizing Metrics for Goal Achievement

Identify key metrics used to measure success and achievement of goals. Define and monitor strategic metrics aligned with business objectives.

6. Assessing Goal Achievement

Analyze whether the defined metrics have successfully achieved the intended goals. Evaluate how well the selected metrics align with and contribute to overall business objectives.

Maturity Stage

When your product reaches the maturity stage of its life cycle, it signifies a culmination of growth efforts and market acceptance. This phase is characterized by stability and consolidation, offering opportunities to solidify market leadership and enhance customer relationships.

• Recognizing Maturity

The maturity stage is attained when your product has achieved its intended market share and revenue targets. It’s a moment of transition where the focus shifts from expansion to preservation and enhancement of market presence.

• Setting Maturity Goals

At this stage, your primary goal is to sustain and strengthen your market position by focusing on customer retention and engagement. The objective is to maximize profitability from existing customer bases while maintaining brand relevance and credibility.

• Indicators of Maturity

Key indicators of maturity include consistent revenue generation, stable market share, and high levels of customer retention. The product’s growth rate stabilizes, and competition intensifies, necessitating a strategic focus on service differentiation and customer satisfaction.

• Customer Retention Strategies

Customer retention becomes paramount in the maturity stage. Implementing personalized customer engagement programs, loyalty initiatives, and proactive customer service efforts are crucial to retaining existing customers and fostering long-term relationships.

• Customer Engagement Programs

Engaging customers through targeted programs, such as exclusive offers, events, and personalized interactions, strengthens brand affinity and encourages repeat business. Building emotional connections with customers is essential for sustaining loyalty.

• Emphasizing Unique Service Propositions

In the maturity stage, differentiation shifts from product innovation to service excellence. Offering unique service propositions, such as exceptional after-sales support, tailored solutions, and value-added services, enhances customer satisfaction and loyalty.

• Building Market Confidence and Credibility

Ultimately, maturity is about building market confidence and credibility. By consistently delivering value and exceptional service, you cultivate trust and loyalty among customers. Higher customer retention rates reflect the confidence you’ve earned in the market.

Embracing Continuous Innovation: Avoiding Product Sunset

In the product lifecycle, reaching maturity is not the endpoint but an opportunity for sustained innovation and market relevance. As a product leader, the goal is to avoid product retirement by leveraging the innovation window within the maturity stage.

Leveraging Innovation for Growth

• Self-Killing Products

Companies like Microsoft phase out older products to introduce new versions, but the focus should be on continuous evolution rather than retirement.

• Harnessing the Innovation Window  

When a product matures, it enters a critical phase for innovation. Google’s integration of Google Chat into Gmail demonstrates leveraging this window to enhance user experience.

Examples of Successful Evolution

• Facebook and Amazon

These companies have introduced innovations within existing products, such as Facebook’s integration of emojis into video calls and Amazon’s launch of Amazon Prime beyond e-commerce.

• Strategic Resource Allocation

Companies allocate around 20% of their resources to explore new ideas and features, ensuring products remain relevant and adaptable.

Avoiding Product Sunset

Solely clearing backlog items without investing in innovation can lead to product sunset. Market research and competitor analysis are crucial to avoid being disrupted.

Embracing Continuous Evolution

Product leaders should focus on continuous evolution and disruption within existing products to sustain market leadership and relevance.

Crafting a compelling product vision requires a blend of creativity, market insight, technological feasibility, and business acumen. By focusing on these core elements, you can shape a vision that not only guides product development but also sets the stage for achieving meaningful impact and success.

About the Author:

Gomati Garware – Head of Product Management, TraceLink

Frequently Asked Questions

A product journey refers to the lifecycle of a product from its conceptualization and development through to its launch, growth, maturity, and eventual decline or evolution. It encompasses the various stages and experiences that a product undergoes as it enters the market, interacts with customers, adapts to market feedback, and evolves.

The product life cycle (PLC) refers to the stages that a product goes through from its introduction to the market until its eventual decline and removal from the market.

The product life cycle is important for guiding strategic decision-making, optimizing resource allocation, managing profitability, evolving products to meet changing market needs, and staying competitive in dynamic markets.

The growth stage is characterized by significant sales expansion, heightened competition, increased profitability, and strategic investments to capitalize on market opportunities. The goal is to establish a strong market presence and position the product for sustained success as it progresses through the product life cycle.

The maturity stage in the product life cycle is the phase where a product experiences stabilized sales growth, reaches market saturation, and competition intensifies. This stage typically follows the growth stage and is characterized by slower but steady sales growth and a focus on maximizing profitability.

The decline stage in the product life cycle is the phase where a product experiences decreasing sales and declining market demand. This stage follows the maturity stage and signifies the end of the product’s life cycle as it becomes less profitable and loses market relevance.

Our Popular Product Management Programs

Our trending product management programs.

• Product Management Certification

Post Graduate Program in Product Management

• Associate Product Manager Certification
• Strategy & Leadership Certification

Trending Posts

Leave a reply cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

About Institute of Product Leadership

Faculty & coaches, press & media, corporate training, career management, hire talent, privacy policy, refund policy, student loans and financing, careers @ ipl, product management courses, university programs, executive mba in product leadership, certificate programs, certified associate product manager, international certificate in product management, international certificate in strategy & leadership, product management professional workshop, product community, product leaders forum, ipl alumni network, free resources, knowledge center, toolkits & templates.

• Search Search Please fill out this field.
• How It Works
• Pros and Cons

Special Consideration

The bottom line.

• Small Business

Product Life Cycle Explained: Stage and Examples

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

What Is the Product Life Cycle?

The product life cycle is the length of time that a product is available to customers. It starts when a product (a good or a service) is introduced into the market and ends when it's removed from the shelves.

This concept is used by management and marketing professionals to make marketing and sales decisions, such as whether or not to increase advertising, reduce prices, expand to new markets, or redesign packaging. The process of strategizing ways to continuously support and maintain a product is called product life cycle management .

Key Takeaways

• A product life cycle is the length of time from when a product is introduced to the market until it's taken off shelves.
• There are four stages in a product's life cycle: introduction, growth, maturity, and decline.
• A company often incurs higher marketing costs when introducing a product to the market but experiences higher sales as product adoption grows.
• Sales stabilize and peak when the product's adoption matures, though competition and obsolescence may cause its decline.
• The concept of product life cycle helps inform marketing and sales decisions, from pricing and promotion to expansion or cost-cutting.

Investopedia / Xiaojie Liu

How the Product Life Cycle Works

A product begins with an idea. Within the confines of modern business, that idea isn't likely to go further until it undergoes research and development (R&D) . If the business finds that it is feasible and potentially profitable, the product will be produced, marketed, and rolled out.

The life cycle of a product is broken into four stages:

• Introduction

Some product life cycle models include product development as a stage, though at this point, the product has not yet been brought to customers.

Introduction Stage

The introduction phase is the first time customers are introduced to the new product. This stage generally requires that the business make a substantial investment in advertising. At this point, the marketing is focused on making consumers aware of the product and its benefits, especially if it is broadly unknown what the item will do.

During the introduction stage, there may be little or no competition for a product, as competitors may just be getting a first look at the new offering. Even if the business is offering a new product or service in response to another business's sales, the marketing will still be focused on introducing the new product rather than on differentiating it from competitors' products.

Companies often experience negative financial results at this stage. Sales tend to be lower, promotional pricing may be low to drive customer engagement, marketing spending is high, and the sales strategy is still being evaluated.

Growth Stage

If the product is successful, it then moves to the growth stage. This is characterized by:

• Growing demand
• Increase in production
• Expanded availability

The amount of time spent in the introduction phase before a company's product experiences strong growth will vary between industries and products.

During the growth phase, the product becomes more popular and recognizable. A company may still choose to invest heavily in advertising if the product faces heavy competition. However, marketing campaigns will likely be geared towards differentiating its product from others as opposed to introducing the goods to the market. A company may also refine its product by improving functionality based on customer feedback.

Financially, the growth period of the product life cycle results in increased sales and higher revenue. As peer businesses begin to offer rival products, competition increases, potentially forcing the company to decrease prices and experience lower margins.

Maturity Stage

The maturity stage of the product life cycle is the most profitable stage, the time when the costs of producing and marketing decline. With the market saturated with the product, competition is now higher than at other stages, and profit margins start to shrink. Some analysts refer to the maturity stage as when sales volume is "maxed out."

Depending on the good, a company may begin deciding how to innovate its product or introduce new ways to capture a larger market presence. This includes getting more feedback from customers and researching their demographics and their needs.

During the maturity stage, competition is at the highest level. Rival companies have had enough time to introduce competing and improved products, and competition for customers is usually highest. Sales levels stabilize, and a company strives to have its product exist in this maturity stage for as long as possible.

The stage of a product's life cycle impacts how it is marketed to consumers. A new product needs to be explained, while a mature product needs to be differentiated from its competitors.

Decline Stage

As the product takes on increased competition and other companies emulate its success, the product may lose market share . This is when the decline state begins.

Product sales begin to drop due to market saturation and alternative products. If customers have already decided whether they are loyal to the product or prefer those of competitors, the company may choose to not invest in additional marketing efforts. Should a product be entirely retired , the company will stop generating support for it and will entirely phase out marketing and production endeavors.

Alternatively, the company may decide to revamp the product or introduce a next-generation, completely overhauled model. If the upgrade is substantial enough, the company may choose to re-enter the product life cycle by introducing the new version to the market.

Microsoft's decision to sunset Windows 8.1 in January 2023 was an example of the decline stage. Consumers began receiving notifications the year before that Microsoft would no longer support the product and instead would focus resources on newer technologies.

Benefits and Drawbacks of Using the Product Life Cycle

Clarify portfolio of offerings

Better allocation of resources

Positive impact on economic growth

Promotes innovation

Not appropriate for every industry or product

Legal or trademark restrictions

Planned obsolescence

Product or resource waste

The product life cycle better allows marketers and business developers to better understand how each product or brand sits with a company's portfolio. This enables the company to internally shift resources to specific products based on those products' positioning within the product life cycle.

For example, a company may decide to reallocate marketing resources to products entering the introduction or growth stages. Alternatively, it may need to invest more cost of labor in engineers or customer service technicians as the product matures.

The product life cycle naturally tends to have a positive impact on economic growth, as it promotes innovation and discourages supporting outdated products. As products move through the life cycle stages, companies that track the product life cycle can be more aware of the need to make their products more effective, safer, efficient, faster, cheaper, or better suited to client needs.

Despite its utility for planning and analysis, the product life cycle doesn't apply to every industry and doesn't work consistently across all products. Consider popular beverage lines whose primary products have been in the maturity stage for decades, while spin-offs or variations of these drinks from the same company have failed.

The product life cycle also may be artificial in industries with legal or trademark restrictions. Consider the new patent term in the United States, which is 20 years from when the application for the patent was filed. A drug may be adversely impacted by competition when its patent ends regardless of which life cycle stage it is in.

Another unfortunate side effect of the product life cycle is prospective or planned obsolescence. When a product enters the maturity stage, a company may be tempted to begin planning its replacement. This may be the case even if the existing product still holds many benefits for customers and could continue to have a long shelf life. For producers who tend to introduce new products every few years, this can lead to product waste and inefficient use of product development resources.

Product Life Cycle vs. BCG Matrix

A similar analytical tool to help businesses determine the market positioning of a product is the Boston Consulting Group (BCG) Matrix . This four-square table defines products based on their market growth and market share:

• Stars : Products with high market growth and high market share
• Cash cows : Products with low market growth and high market share
• Question marks or problem children : Products with high market growth and low market share
• Dogs : Products with low market growth and low market share

Both systems analyze a product's market growth and saturation. However, the BCG Matrix does not traditionally communicate the direction in which a product will move. For example, a product that has entered the maturity stage of the product life cycle will likely experience decline next; the BCG Matrix does not communicate this product flow in its visual depiction.

There is no direct relationship between where a product sits in the BCG Matrix and where it is in the product life cycle.

Impact on Innovation

Companies that have a good handle on all four stages can increase profitability and maximize their returns . Those that aren't able to may experience an increase in their marketing and production costs, ultimately leading to the limited shelf life for their products.

In 1965, Theodore Levitt, a marketing professor, wrote in the Harvard Business Review that the innovator is the one with the most to lose because so many truly new products fail at the first phase of their life cycle—the introductory stage. The failure comes only after the investment of substantial money and time into research, development, and production. This fact prevents many companies from trying many new ideas. Instead, he said, they wait for someone else to succeed and then clone the success.

Stages Within an Industry

In an established industry, products will exist at all stages of the life cycle, influenced by other products that have recently become available. For example, in television program distribution, OLED TVs are in the mature phase, programming-on-demand is in the growth stage, DVDs are in decline, and the videocassette is extinct.

Prolonging the Mature Stage

Many of the most successful products on earth are suspended in the mature stage for as long as possible, undergoing minor updates and redesigns to keep them differentiated. Examples include:

• Apple computers and iPhones
• Ford trucks
• Starbucks' coffee

All of these products undergo minor changes accompanied by major marketing efforts, which are designed to keep them feeling unique and special in the eyes of consumers.

Examples of the Product Life Cycle

Many brands that were American icons have gone through the entirety of the product life cycle, reaching their decline for a variety of different reasons. In some cases, better management of product life cycles might have prolonged their availability. In others, the company faced steep competition or the product didn't resonate with customers.

Oldsmobile began producing cars in 1897. After merging with General Motors in 1908, the company used the first V-8 engine in 1916. By 1935, the one millionth Oldsmobile had been built. In 1984, Oldsmobile sales peaked, selling more cars in that year than any other year. By 2000, General Motors announced it would phase out the automobile and, on April 29th, 2004, the last Oldsmobile was built.

Woolworth Co.

In 1905, Frank Winfield Woolworth incorporated F.W. Woolworth Co., a general merchandise retail store. By 1929, Woolworth had about 2,250 outlet stores across the United States and Britain, Decades later, due to increased competition from other discount retailors, Woolworth closed the last of its variety stores in the United States in 1997 to increasingly focus on sporting goods.

On April 23, 1985, Coca-Cola announced a new formula for its popular beverage, referred to as "new Coke." Coca-Cola's market-share lead had been decreasing over the past 15 years, and the company decided to launch a new recipe in hopes of reinvigorating product interest. After its launch, Coca-Cola's phone line began receiving 1,500 calls per day, many of which were to complain about the change. Protest groups recruited 100,000 individuals to support their cause of bringing "old" Coke back.

A stunning 79 days after its launch, "new Coke's" full product life cycle was complete. Though the product didn't experience much growth or maturity, its introduction to the market was met with heavy protest. Less than three months after it announced its new recipe, Coca-Cola announced it would revert its product back to the original recipe.

What Are the Stages of the Product Life Cycle?

The product life cycle is defined as four distinct stages: product introduction, growth, maturity, and decline. The amount of time spent in each stage will vary from product to product, and different companies have different strategic approaches to transitioning from one phase to the next.

What Are Product Life Cycle Strategies?

Depending on the stage a product is in, a company may adopt different strategies along the product life cycle. For example, a company is more likely to incur heavy marketing and R&D costs in the introduction stage. As the product becomes more mature, companies may then turn to improving product quality, entering new segments, or increasing distribution channels. Companies also strategically approach divesting from product lines including the sale of divisions or discontinuation of goods.

What Is Product Life Cycle Management?

Product life cycle management is the act of overseeing a product's performance over the course of its life. Throughout the different stages of product life cycle, a company enacts strategies and changes based on how the market is receiving a good.

Why Is Product Life Cycle Important?

Product life cycle is important because it informs management of how its product is performing and what strategic approaches it may take. By being informed of which stage its product(s) are in, a company can change how it spends resources, which products to push, how to allocate staff time, and what innovations they want to research next.

Which Factors Impact a Product's Life Cycle?

Many factors can affect how a product performs and where it lies within the product life cycle. In general, the product life cycle is heavily impacted by market adoption, ease of competitive entry, rate of industry innovation, and changes to consumer preferences. If it is easier for competitors to enter markets, consumers can change their minds frequently about the goods they consume, or the market may quickly become saturated. Then, products are more likely to have shorter lives throughout a product life cycle.

Broadly speaking, almost every product sold undergoes the product life cycle. This cycle of market introduction, growth, maturity, and decline may vary from product to product, as well as from industry to industry.

This cycle can help a company make decisions about resource allocation, track the outlook of products, and strategically plan for bringing new products to market.

Microsoft. " Windows 8 and Windows 8.1 End of Support and Office ."

Food and Drug Administration. " Frequently Asked Questions on Patents and Exclusivity ."

Harvard Business Review. " Exploit the Product Life Cycle ."

Oldsmobile Club of America. " History of Oldsmobile ."

Britannica. " Woolworth Co. "

The Coca-Cola Company. " The Story of One of the Most Memorable Marketing Blunders Ever ."

• Terms of Service
• Editorial Policy
• Privacy Policy

• Undergraduate
• High School
• Architecture
• American History
• Asian History
• Antique Literature
• American Literature
• Asian Literature
• Classic English Literature
• World Literature
• Creative Writing
• Linguistics
• Criminal Justice
• Legal Issues
• Anthropology
• Archaeology
• Political Science
• World Affairs
• African-American Studies
• East European Studies
• Latin-American Studies
• Native-American Studies
• West European Studies
• Family and Consumer Science
• Social Issues
• Women and Gender Studies
• Social Work
• Natural Sciences
• Pharmacology
• Earth science
• Agriculture
• Agricultural Studies
• Computer Science
• IT Management
• Mathematics
• Investments
• Engineering and Technology
• Engineering
• Aeronautics
• Medicine and Health
• Alternative Medicine
• Communications and Media
• Advertising
• Communication Strategies
• Public Relations
• Educational Theories
• Teacher's Career
• Chicago/Turabian
• Company Analysis
• Education Theories
• Shakespeare
• Canadian Studies
• Food Safety
• Relation of Global Warming and Extreme Weather Condition
• Movie Review
• Admission Essay
• Annotated Bibliography
• Application Essay
• Article Critique
• Article Review
• Article Writing
• Book Review
• Business Plan
• Business Proposal
• Capstone Project
• Cover Letter
• Creative Essay
• Dissertation
• Dissertation - Abstract
• Dissertation - Conclusion
• Dissertation - Discussion
• Dissertation - Hypothesis
• Dissertation - Introduction
• Dissertation - Literature
• Dissertation - Methodology
• Dissertation - Results
• GCSE Coursework
• Grant Proposal
• Marketing Plan
• Multiple Choice Quiz
• Personal Statement
• Power Point Presentation
• Power Point Presentation With Speaker Notes
• Questionnaire
• Reaction Paper

Research Paper

• Research Proposal
• SWOT analysis
• Thesis Paper
• Online Quiz
• Literature Review
• Movie Analysis
• Statistics problem
• Math Problem
• All papers examples
• How It Works
• Money Back Policy
• Terms of Use
• Privacy Policy
• We Are Hiring

Understanding Product Life Cycle, Essay Example

Pages: 1

Words: 378

Hire a Writer for Custom Essay

Use 10% Off Discount: "custom10" in 1 Click 👇

You are free to use it as an inspiration or a source for your own work.

Products and go through different stages, and these stages (their order and length) have an impact on strategic alternative selection. The product life cycle can be analyzed based on the market conditions (sales and profits), throughout the time when the product or service is available for customers. The benefit of using product life cycle assessment is improving the organization’s knowledge about the market conditions. However, the disadvantage is that the assessment is based on individual judgements and predictions of the future. There are many unexpected market trends that can affect the life cycle of the service.   The four stages of product life cycle are: introductory, growth, maturity, and decline. Profitability, external conditions, and demand are different during each stage of the life cycle. In the introduction stage, sales are low, and profits are negative. There are only a few competitors, and the cost to customers is high. In the growth stage, revenue grow rapidly, profits peak, and the number of competitors grows, which makes the organization reduce its prices. In the maturity stage, growth of revenues is low, cost to customers is reduced, and competition is increased, while profits remain high. In the decline stage of the product life cycle, sales start to decline, profits are low, and prices are low. The number of competitors is declining.

It is important for a health care organization to complete a product life cycle analysis in order to select the right market entry strategy. No matter which market entry strategy the organization chooses, it needs to know the product life cycle associated with the strategy.  A product life cycle analysis answers the questions managers might have related to the market entry strategy, such as:

• Which stage of the cycle the organization’s products or services are
• How long is the current stage (and the entire cycle) likely to last

The results of the external analysis and environmental analysis can help judge the likely scenario related to the life cycle of the product or service. As an example, if the product or service is in the maturity stage, some of the strategy choices most suitable are market development or product development, while related diversification is not recommended.

Works Cited

Swayne, Linda E., W. Jack Duncan, and Peter M. Ginter.  Strategic management of health care organizations . John Wiley & Sons, 2012.

Stuck with your Essay?

Get in touch with one of our experts for instant help!

Emotional Dynamics in Fieldwork With Racist Activists, Research Paper Example

Understanding the Organization’s Culture, Essay Example

Time is precious

don’t waste it!

Plagiarism-free guarantee

Privacy guarantee

Secure checkout

Money back guarantee

Related Essay Samples & Examples

Voting as a civic responsibility, essay example.

Words: 287

Utilitarianism and Its Applications, Essay Example

Words: 356

The Age-Related Changes of the Older Person, Essay Example

Pages: 2

Words: 448

The Problems ESOL Teachers Face, Essay Example

Pages: 8

Words: 2293

Should English Be the Primary Language? Essay Example

Pages: 4

Words: 999

The Term “Social Construction of Reality”, Essay Example

Words: 371

Product Life Cycle

The stages that a product moves through the marketplace

What is the Product Life Cycle?

The Product Life Cycle (PLC) defines the stages that a product moves through in the marketplace as it enters, becomes established, and exits the marketplace. In other words, the product life cycle describes the stages that a product is likely to experience. It is a useful tool for managers to help them analyze and develop strategies for their products as they enter and exit each stage.

Stages in the Product Life Cycle

The four stages in the product life cycle are:

• Introduction

1. Introduction Stage

When a product first launches, sales will typically be low and grow slowly. In this stage, company profit is small (if any) as the product is new and untested. The introduction stage requires significant marketing efforts, as customers may be unwilling or unlikely to test the product. There are no benefits from economies of scale, as production capacity is not maximized.

The underlying goal in the introduction stage is to gain widespread product recognition and stimulate trials of the product by consumers. Marketing efforts should be focused on the customer base of innovators – those most likely to buy a new product. There are two price-setting strategies in the introduction stage:

• Price skimming : Charging an initially high price and gradually reducing (“skimming”) the price as the market grows.
• Price penetration : Establishing a low price to quickly enter the marketplace and capture market share, before increasing prices relative to market growth.

2. Growth Stage

If the product continues to thrive and meet market needs, the product will enter the growth stage. In the growth stage, sales revenue usually grows exponentially from the take-off point. Economies of scale are realized as sales revenues increase faster than costs and production reaches capacity.

Competition in the growth stage is often fierce, as competitors introduce similar products. In the growth stage, the market grows, competition intensifies, sales rise, and the number of customers increases. Price undercutting in the growth stage tends to be rare, as companies in this stage can increase their sales by attracting new customers to their product offerings.

3. Maturity Stage

Eventually, the market grows to capacity, and sales growth of the product declines. In this stage, price undercutting and increased promotional efforts are common as companies try to capture customers from competitors. Due to fierce competition, weaker competitors will eventually exit the marketplace – the shake-out. The strongest players in the market remain to saturate and dominate the stable market.

The biggest challenge in the maturity stage is trying to maintain profitability and prevent sales from declining. Retaining customer brand loyalty is key in the maturity stage. In addition, to re-innovate itself, companies typically employ strategies such as market development, product development, or marketing innovation to ensure that the product remains successful and stays in the maturity stage.

4. Decline Stage

In the decline stage, sales of the product start to fall and profitability decreases. This is primarily due to the market entry of other innovative or substitute products that satisfy customer needs better than the current product. There are several strategies that can be employed in the decline stage, for example:

• Reduce marketing efforts and attempt to maximize the life of the product for as long as possible (called milking or harvesting).
• Slowly reducing distribution channels and pulling the product from underperforming geographic areas. Such a strategy allows the company to pull the product out and attempt to introduce a replacement product.
• Selling the product to a niche operator or subcontractor. This allows the company to dispose of a low-profit product while retaining loyal customers.

Additional Resources

CFI offers the Financial Modeling & Valuation Analyst (FMVA)™ certification program for those looking to take their careers to the next level. To keep learning and advancing your career, the following CFI resources will be helpful:

• Beachhead Strategy
• Market Planning
• Value Engineering
• See all management & strategy resources
• Share this article

Create a free account to unlock this Template

Access and download collection of free Templates to help power your productivity and performance.

Already have an account? Log in

Supercharge your skills with Premium Templates

Take your learning and productivity to the next level with our Premium Templates.

Upgrading to a paid membership gives you access to our extensive collection of plug-and-play Templates designed to power your performance—as well as CFI's full course catalog and accredited Certification Programs.

Already have a Self-Study or Full-Immersion membership? Log in

Access Exclusive Templates

Gain unlimited access to more than 250 productivity Templates, CFI's full course catalog and accredited Certification Programs, hundreds of resources, expert reviews and support, the chance to work with real-world finance and research tools, and more.

Already have a Full-Immersion membership? Log in

Product Life Cycle Essays

The challenge of the patient portal, product life cycle analysis: blooming counseling, marketing mix, marketing process, and product life cycle, principles of marketing: product life cycle and product strategy perspectives, popular essay topics.

• American Dream
• Artificial Intelligence
• Black Lives Matter
• Bullying Essay
• Career Goals Essay
• Causes of the Civil War
• Child Abusing
• Civil Rights Movement
• Community Service
• Cultural Identity
• Cyber Bullying
• Death Penalty
• Depression Essay
• Domestic Violence
• Freedom of Speech
• Global Warming
• Gun Control
• Human Trafficking
• I Believe Essay
• Immigration
• Importance of Education
• Israel and Palestine Conflict
• Leadership Essay
• Legalizing Marijuanas
• Mental Health
• National Honor Society
• Police Brutality
• Pollution Essay
• Racism Essay
• Romeo and Juliet
• Same Sex Marriages
• Social Media
• The Great Gatsby
• The Yellow Wallpaper
• Time Management
• To Kill a Mockingbird
• Violent Video Games
• What Makes You Unique
• Why I Want to Be a Nurse
• Send us an e-mail

• Call to +1 844 889-9952

43 Product Lifecycle Analysis Examples

🔝 top-10 product lifecycle analysis example essays, 🔃 what is a product lifecycle, 🔬 what is a product lifecycle analysis, 📝 product lifecycle analysis research paper examples.

A product is almost a living creature. It has its traits, strong sides, and flaws. But most importantly, it goes through a unique, unprecedented, and unrepeatable lifecycle. Each stage of this timeline requires particular marketing strategies. That’s why product lifecycle analysis is so critical.

• The Chocolala Company New Product Development
• Emaar Marketing Strategy for International Expansion
• Product Development Life Cycle Phases
• WD-40 Company Strategic Marketing Analysis
• Vodafone Company's Global Strategy and Mission
• Business Growth and Opportunity Strategies
• Emirates Airline Business Strategy
• Marketing Platform Principles
• Supply Chain Management: Collaboration and Logistics
• Hybrid Electric Cars Marketing Mix

A product lifecycle is a period between a product entering and leaving the market. Some products manage to remain afloat in a prolonged maturity period. But its exit is inevitable due to a decrease in demand, competition, or drop in sales. Read on to learn the four stages of the process.

What Are the Four Stages in the Product Life Cycle?

• Introduction. A newly developed product enters the market . The stakes are high but still not decisive for a successful outcome. It is a marketing-intense stage, as companies need to create a demand.
• Growth. Provided the advertising campaign was successful, more people learn of the product. Consumers take action. High competition can make the company cut prices and pour more funds into marketing.
• Maturity . The market approaches saturation, and the sales gradually decrease. Profit margins get lower as companies use lower prices as a competitive benefit. The introduction of an altered product can save the day.
• Decline. The sales finally drop as the demand and consumer behavior change. Competition deteriorates, and the product loses its share in marketing. The stage concludes with product retirement.

Some marketing theory includes extracting resources and manufacturing into each product life cycle analysis example. This approach allows the evaluation of product sustainability and ecological impact.

Theodore Levitt, a Harvard Business school professor, developed a product lifecycle analysis. He suggested a universal template applicable to any sold item. In addition to the four steps above, he considered product development a prequel stage.

A product lifecycle analysis is a marketing study researching the critical success factors of a product. But most importantly, it explores the competition and demand at each stage and their implications.

What Is the Purpose of a Product Lifecycle Analysis?

The purpose of a product lifecycle analysis is to describe the benefits and limitations of a product , given the current situation in the market. It optimizes marketing investments and allows for making well-informed managerial decisions. Finally, the method prepares companies to face and withstand competition .

Essay on Product Life Cycle: What Is It About?

One of the ideas for a product life cycle essay is to analyze the factors affecting the product’s presence in the market. Some will blow wind into your sails, while others may hinder your success. So, which factors influence any product lifecycle?

We hope that the theory outlined above will help you produce a perfect paper. Check more product life cycle analysis examples collected below on the web page.

• Procter & Gamble Company's Production Management Process Business essay sample: The Time Series approach, in its turn, can be considered a good tool for identifying the patterns in P&G’s performance so that a forecast could be drawn later on.
• The Hershey Company's Marketing Strategy Business essay sample: This report analyzes Hershey's from the view of marketing strategy, discussing marketing mix, consumer buying behavior and branding, and the product lifecycle.
• Product Life Cycle: Term Definition Business essay sample: Product life cycle in this case is taken to mean the succession of the many varying stages by which a product is said to undergo through.
• Management Product Life Cycle Business essay sample: For several decades, the product life cycle model has been very popular in management. Companies adopt this concept as a core of business operations and product management.
• The Product Life Cycle in Management Success Business essay sample: A product’s life cycle has many phrases and involves many professional disciplines, and requires many skills, tools, and processes.
• The Product Life Cycle in Business Area Business essay sample: This paper critically evaluates the literature that supports and criticises the Product Life Cycle concept and gives a balanced argument using case examples.
• Revlon Company Strategic Management Business essay sample: This study identifies whether the Russian market is a viable multinational expansion point for Revlon by taking an in-depth look into the Russian market.
• Operations Management: How to Idealize Your Operations Strategy Business essay sample: To idealize operations strategy, we need to first think about its two major components- operations and strategy.
• IBM’s Market Management Strategy’s Evolution Business essay sample: In the past two decades, International Business Machines (IBM) recorded a remarkable growth driven by broad-based software and hardware services.
• Marketing Aspects Based on the Cruiser Thorr Simulation Business essay sample: The repositioning of the Thorr products in the simulation is suggesting the feasibility of the assembled marketing strategy basing on the implications of the simulation.
• Planning and Developing a New Product Business essay sample: Planning and development are important preliminary steps that account for a major part of success before the product reaches its market.
• Furniture Company: Marketing Research and Enhancement Business essay sample: This report identifies the future changes in the trends of the furniture market and also recommends possible strategies which can be helpful to recover from this situation.
• "Global Marketing Management" by Kotabe and Helsen Book Summary Business essay sample: Marketing management is a field in business that puts into practice the theoretical approaches that an organization can embrace to make known its products in the market.
• Frito-Lay and Cracker Jack: Case Analysis Business essay sample: This paper has centered to represent an analysis and examination of the merger between Frito-Lay and Cracker Jack, and an investigation of whether it would be successful or not.
• Developing and Introducing a New Product Business essay sample: The new product development is the ultimate product as a result of the analyzing, designing, developing and brainstorming of the ideas and creativity.
• Coca-Cola: Product Development Analysis Business essay sample: This paper aims at analyzing some of the reasons that have made some products successful while others fail to gain market.
• Product Life Cycle Stages Business essay sample: The four factors which variably characterize every stage of the product cycle are products name or brand, the price, its distributive criteria and product promotion.
• Female Economy. Case Study Business essay sample: This paper seeks to address the key issues that arise in the Female Economy and how companies can improve their approach regarding women.
• Apple iPod Product's Marketing Audit & Management Business essay sample: This report is an audit carried out on iPod, it contains within it sections like a brief introduction of Apple, the evaluation, or the analysis of the situation.
• A Notebook Computer in Huawei’s Product Portfolio Business essay sample: The study assesses the market condition of notebook computers and tries to generate an idea for introducing notebook computers in Huawei’s current product portfolio.
• Procter & Gamble Co.'s Marketing Plan Business essay sample: The mass market is what drives the sales of P&G consumer products. This explains why the company targets chain stores like Wal-Mart.
• MyBank: The Aspect of Change Management Business essay sample: MyBank have survived the wave of market competition and economic recession through strategically positioning themselves to accept and embrace continuous change in work culture.
• Using Perceptual Maps in Market Simulation Business essay sample: To ensure that sales revenue of products is increased, it is necessary to consider the product situation and include the necessary parameters to be used in the marketing strategy.
• Wal-Mart Product Design and Decision Making Business essay sample: Product design and decision-making are critical for the success of any company. Wal-Mart leadership has emphasized “in innovation” to bring new products ‘which consumer need’.
• Smart Thermostats Are People’s Efficiency and Comfort Business essay sample: Smart thermostats are gaining momentum due to people’s search for efficiency and comfort. It is necessary to make the product more user-friendly by improving the interface.
• Tesla’s Disruptive Business in the Context of Marketing Management Business essay sample: Tesla engages in direct communication with its customers on all levels, including its CEO, which enables a better understanding of the market’s requirements.
• Domino’s Pizza Firm’s Operational Management Business essay sample: This report presents an analysis of the operational management of Domino’s Pizza enterprise. It elaborates on the key strategies and functional issues that affect the business.
• Design of Goods and Services Business essay sample: Mcdonald's has had to consider different issues in their product development to ensure they maintain a competitive advantage in the market.
• Kodak Company's Strategic Issue and Solution Business essay sample: Kodak had some excellent ideas for capturing new markets through innovation; however, the leadership likely dismissed such thoughts due to the limitations in the mindset.
• Johnson & Johnson Pharmaceutical Company's Analysis Business essay sample: The paper analyzes the market environment for Johnson & Johnson pharmaceutical products and assesses how the company can differentiate itself from competitors.
• Starbucks Company's Marketing Stage Analysis Business essay sample: The paper determines the marketing stage of Starbucks Company, and classification based on the Boston Consulting Group Matrix and Ansoff product-market matrix.
• The Significance of Carbon Disclosure Project on Supply Chain and Life Cycle Business essay sample: Carbon disclosures play significant roles for various organizations. Reporting to CDP can help a company to gain a competitive advantage in the market.
• The Converse Chuck Taylor All-Star Shoe Business essay sample: The product is in the Converse Chuck Taylor All-Star shoe line though it has different modifications that will allow for maximum comfort and durability.

Cite this page

Select style

• Chicago (A-D)
• Chicago (N-B)

BusinessEssay. (2023, August 8). 43 Product Lifecycle Analysis Examples. https://business-essay.com/analyses/product-lifecycle-analysis-research-paper-examples/

"43 Product Lifecycle Analysis Examples." BusinessEssay , 8 Aug. 2023, business-essay.com/analyses/product-lifecycle-analysis-research-paper-examples/.

BusinessEssay . (2023) '43 Product Lifecycle Analysis Examples'. 8 August.

BusinessEssay . 2023. "43 Product Lifecycle Analysis Examples." August 8, 2023. https://business-essay.com/analyses/product-lifecycle-analysis-research-paper-examples/.

1. BusinessEssay . "43 Product Lifecycle Analysis Examples." August 8, 2023. https://business-essay.com/analyses/product-lifecycle-analysis-research-paper-examples/.

Bibliography

BusinessEssay . "43 Product Lifecycle Analysis Examples." August 8, 2023. https://business-essay.com/analyses/product-lifecycle-analysis-research-paper-examples/.

• Stakeholders Analysis
• Market Structure Analysis
• STP Analysis
• Benchmarking Analysis
• Entrepreneur Feasibility Analysis
• Functional Job Analysis
• Spend Analysis
• Corporate Reputation Analysis
• Executive Compensation Analysis
• Porter’s Diamond Model

• Your Project
• Product Life Cycle

What is the Product Life Cycle?

The Product Life Cycle describes the evolution of the Popularity of a Product from its first launch to its end .

Popularity? Yes.

• No matter if you are interested in Sales, Benefits… All those factors depend on how Popular a product is .

There are multiple factors that affect these Life Cycles and, therefore, they can have very different shapes.

Here, we analyze which are the most common Life Cycles you can expect.

• We have investigated some of the most “popular” products, their life cycles and why they evolved that way .

But, first of all , we should mention the 4 stages that all Product Life cycles experience:

4 Stages of Product Life Cycle

Do you remember what they tough you at school when you were 5?

• We grow up.
• We procreate.
• We get old.

Well… The 4 Stages of a Product are exactly the same, except in the “procreation” stage.

4 Stages of Product Life Cycle.

This is the traditional Life Cycle we have all studied in the books.

But… How can we measure the Popularity of a Product?

Easy: We use G o o g l e Trends .

• We recommend you to check our “ How to use Google Trends ” Page.

Let’s see a product that perfectly exemplifies these 4 stages:

Product Life Cycle example

In case you don’t know, MySpace was one of the first social networking Sites.

Years went by, and it simply disappeared (due to a terrible management).

• Moreover, other new, and better option appeared: Facebook.

Let’s analyze the Popularity of MySpace with Google Trends:

Google Trends results: Interest in “Myspace”.

As you can see in the image above, its Life Cycle evolved exactly as you would expect, according to the theory.

• It is very easy to identify its Introduction, Growth, Maturity and Decline stages .

The question is the next:

• Do all Product Life Cycles evolve in this way?
• Is this a normal average Life Cycle?

The answer is: No .

• In fact, it has been difficult for us to find this traditional-shape example.

As we mentioned before, Product Life Cycles behave in very different ways.

The Key is to identify what makes them to evolve one way or another .

• That way, you could forecast how a product will perform, in advance.

And that is what we have done.

We have identified 3 Main parameters that determine How a Product Life Cycle will evolve.

• Then, we have established different Types of Life Cycles, depending on these parameters.

Product Life Cycles with Examples

The 3 most important parameters when analyzing Product Life Cycles are:

• Product : If it is a New or an Old Product.
• Concept : If it is a New or an Old Concept.
• Easy to Copy : If it it is Easy to Copy or Not .

Product Life Cycle 3-parameters Matrix proposed by Consuunt.

As you can appreciate in the Image above, we have established 6 main Life Cycles (we’ll add 1 more).

• Economical crisis.
• New competitors.
• Legal issues.

Why haven’t we contemplated an Old Product – Old Concept scenario?

• It is axiomatic that, when someone puts something on the Market, whatever it is, it will have something new (even if it is only the color).

But what is the difference between Product and Concept?

• We’ll explain it to you now, with different examples.

As in any rigorous study, we first need a control sample:

Reference Product Life Cycle

We could have chosen a Coke, the Big Mac, a Whopper…

But we have chosen one of the most iconic cars ever produced: the Ford Mustang.

Its name has remained as synonym of powerful, strong and reliable car.

This iconic Product doesn’t lose Popularity , and that is why we have chosen it as our reference Product Life Cycle.

Google Trends results: Interest in “Ford Mustang”.

This flat line means that people is as interested in it today, as they were years ago .

Now, let’s analyze the 6 (+1) different Product Life Cycles that you can expect according to the 3 parameters that we previously explained:

1. New Product - New Concept - Easy to Copy

The Fidget Spinner is the perfect example of a fleeting product.

• Suddenly it appeared… And suddenly it disappeared.

It was a  New Product , with a New Concept (hand toys already existed, but they were not popular).

• However, it was (and still is) extremely Easy to Copy .

Let’s analyze its Popularity with Google Trends:

Google Trends results: Interest in “Fidget Spinner”.

Its entire Product Life Cycle lasted one year .

2. New Product - New Concept - Not Easy to Copy

The iPad is a good example of a New Product , with a New Concept , but Not Easy to Copy .

Again: some people could argue that, PDAs already existed, as well as smartphones, but there were not exactly the same.

Let’s analyze its Product life cycle with Google Trends:

Google Trends results: Interest in “iPad”.

Although its Popularity reached a maximum in 2012 (it took 2 years to reach it) it seems that it has now entered in a “flat” stage.

• Perhaps, it has already become a “reference product” such as the Ford Mustang.

* Those peaks are due to Christmas holidays or/ and the release of a new version. 

Other good example is the iPhone .

Since it was a much Newer Concept and Product , in every possible way (it was first introduced 3 years before the iPad) we would expect a much flatter curve in the growth stage:

Google Trends results: Interest in “iPhone”.

Exactly. As you can see in the image above, the newer the concept the flatter the growth stage .

• The “Fidget Spinner” was a $2 extremely-easy-to-copy toy.

But, these products are renewed every year.

There is a new iPhone every year, as well as new updated iPads.

What if a New Product , with a New Concept , Not Easy to copy were not constantly updated?

Let’s analyze Nintendo ‘s Wii :

This product can answer this question.

• It was a New Product , with a New Concept , Not Easy to copy , but it was launched once (not being re-launched every year).

Let’s analyze its Life Cycle with Google Trends:

Google Trends results: Interest in “Wii”.

It took Wii 1 year to reach maximum Popularit y , then it had 1 year of maturity , and then a slow decline (over 10 years).

Its Product Life Cycle was almost the same as that observed in the iPad.

• However, Nintendo released 2 substitute products with different name and design: Wii U and Switch.

3. New Product - Old Concept - Easy to Copy

Do you remember the Livestrong rubber band?

• It was a simple rubber band that Nike developed for fighting cancer.

Simple, but everybody went crazy about it.

• Its minimalist design.
• All the celebrities had it.
• Its manufacturing was initially limited.

It was a New Product , with an Old Concept , and Easy to Copy .

Let’s analyze what happened with Google Trends:

Google trends results: Interest in “Livestrong”.

As you can see in the image above, its Product Life Cycle lasted only two years .

• The Growth stage lasted 9 months, and was followed by a sharp decline.

4. New Product - Old Concept - Not Easy to Copy

Speaking of Ford again, we will now look at one of its recent releases, the Ford Kuga .

This vehicle is a New Product , with an Old Concept (SUV vehicle) but it is Not Easy to Copy (developing a new car is something very difficult).

Google Trends results: Interest in “Ford Kuga”.

This graph shows a very successful product launch .

• Its popularity, with its ups and downs, has grow steadily.

Moreover, since it was an Old Concept , its popularity grew strongly in the early stages.

• It took just 11 months to reach that initial Popularity peak .

People tend to trust more in what they know best .

5. Old Product - New Concept - Easy to Copy

Few years ago, e-books were the big new trend .

And Amazon’s Kindle, was King.

• A simple device that allowed you to read everything you wanted, wherever you wanted.

This product was not offering any new book .

What this product allowed you to do was to read your favorite books wherever you wanted in a new different way.

• But those books already existed .

That is why Amazon’s Kindle could be considered as an Old Product (books) with a New Concept , but it was Easy to Copy (the technology involved was not very difficult).

Let’s analyze its popularity with Google Trends:

Google Trends results: Interest in “Kindle”.

Its popularity increased slowly for 4 years (from 2007 to 2011) and faded away the following 4 years (Interest < 20).

• Unless they are cheap Products.

6. Old Product - New Concept - Not Easy to Copy

What can we say about Netflix that you don’t know yet?

Netflix was a similar product to Kindle: they didn’t offer new content (at the beginning).

What Netflix initially offered was an Old Product (movies that already existed), with a New Concept , but it was Not Easy to Copy (you need powerful servers, contracts with films producers…).

Let’s analyze its Product Life Cycle with Google Trends:

Google Trends results: Interest in “Netflix”.

As you can appreciate, its Popularity has grown little by little for 10 years, since it is a New Concept.

In this example, the next years will be interesting:

• Disney has just launched its Disney plus.

Moreover, Netflix is now investing in new self-produced content .

• In our “ Resource Based View ” Page, we talked about Disney + and their Strategy.

Seasonal Products

Now, we have to talk about Seasonal products.

Products such as:

• Christmas-related Products.
• Summer toys.
• Ice Creams.

These products, present different cyclical trends.

And you can obtain good information comparing these differences .

Let’s analyze the Popularity of Game of Thrones:

Google Trends results: Interest in “Game of Thrones”.

By just seeing this graph, anyone could guess:

• Easy: 8 peaks = 8 seasons.
• Their release dates.

And… more important:

• By seeing the graph, we have no doubt: the 7th (we don’t say the best, just the most popular).

You may think this is useless but… it isn’t.

You can obtain information that is not obvious “a priori”.

Check now this graph:

Google Trends results: Interest in “Handmaid’s Tale”.

What conclusions can you draw from the Google Trends results of “The Handmaid’s Tale”?

• … Yes… The first season was the most popular one (for me, the only good one).

As we mentioned earlier, this classifications can be nuance is infinite ways.

We just wanted to highlight 3 important pillars that can help you when analyzing Product Life Cycles.

• Regardless of the Product, its Concept, or whether it is Easy to Copy or not.

Let’s summarize some of our main Conclusions:

Analysis of different Product Life Cycles: Conclusions

• Well established products are those whose Popularity remains constant over the years.
• The Newer a Concept is, the flatter its Growth stage will be.
• People tend to trust more in what they know best.
• No matter how big or important is the company. Remember Amazon’s Kindle.
• In Seasonal Products, of course.

Now… How can you use this information?

Why are Product Life Cycles important?

How to use a Product Life Cycle model

This analysis can be very useful for different things.

We have compiled some of them:

You can forecast how a New Product can perform .

• Depending on the 3 parameters explained earlier: Product, Concept, How easy is to copy it.

You can predict how long would it take a New Product to be Launched .

• By analyzing other products that had similar parameters.

You could develop “Exit Strategies” by analyzing how evolves a Product’s popularity .

• Remember: it’s also a victory to know when to retreat.

You can analyze different Seasons’ Life Cycles and define your product based on the conclusions obtained .

• For products with a strong Seasonal component.

You can set “warning signals” and adopt different strategies depending on how a product’s popularity evolve .

• If you predicted that your product would reach a certain Stage after a year and, 4 months later, its popularity is declining, you should do something about it.
• Economies of Scale
• Business Plan for Beginners
• Business Plan Basics
• How to write a Business Plan
• Cash Flow Calculation
• Raising Funds for a Business
• 4 C’s of Credit
• Business Plan Templates
• Customer Insight
• Customer Experience
• Customer Pain Points
• 4C Marketing Model
• RATER Model
• Augmented Product
• Product Mix
• Unique Selling Proposition
• DAGMAR Model
• Marketing Storytelling
• Content Marketing
• Psychographics
• Barnum Effect
• Market Segmentation
• Market Research & Big Data
• Marketing to Generation Z
• 4P Marketing Mix
• 7P Marketing Mix
• Sales Funnel
• Loyalty Ladder
• RACE Planning
• Push and Pull Marketing
• Marketing Strategy
• Marketing Templates
• Starting your own business
• From Startup to a Business
• Entrepreneur FAQs
• Start your Business Idea
• Entrepreneur Golden Rules
• Innovate or Imitate?
• Design Thinking
• SCAMPER Model
• AAR Process
• Work From Home
• Growth strategies for Startups
• VMOST Analysis
• 3P Framework
• SOAR Analysis
• TELOS Analysis
• 5 C’s of Entrepreneurship
• Crowdfunding
• BATNA & ZOPA Negotiation
• Entrepreneur with no Money
• Entrepreneurship Templates
• Strategy vs Tactics
• Mission and Vision
• Business Values
• Value Chain
• Scenario Planning
• Porter 6 Forces
• Bowman’s Strategy Clock
• GE-McKinsey Matrix
• Delta Model
• PEST Analysis
• PESTEL Analysis
• SWOT Analysis
• VRIO Framework
• Strategy Canvas
• Competitive Advantages
• Porter’s Four Corners
• 5 Ps of Strategy
• Porter’s Generic Strategies
• Porter’s Diamond Model
• Wardley Map
• Core Competencies
• Resource Based View
• Bridges Transition Model
• CAGE Distance Framework
• McKinsey’s 3 Horizons
• Vertical Integration
• Horizontal Integration
• Blue Ocean Strategy
• Red Ocean Strategy
• Porter 5 Forces
• Ansoff Matrix
• McKinsey 7S Framework
• CATWOE Analysis
• Strategy Pyramid
• Bain’s RAPID Framework
• Balanced Scorecard
• Resources and Capabilities
• Strategy of Apple
• Strategy of Amazon
• Strategy of Starbucks
• Strategy Templates
• Communicate Effectively
• COIN Conversation Model
• SCARF Model
• SBI Feedback Model
• CEDAR Feedback Model
• How to behave at a meeting
• Gibbs’ Reflective Cycle
• Bloom’s Taxonomy
• 5E Learning Model
• 9-Box Performance Grid
• SEEDS Bias Model
• Halo Effect
• Pygmalion Rosenthal Effect
• Dunning-Kruger Effect
• How to be an Entrepreneur
• How to be a Leader
• Mintzberg Managerial Roles
• Cog’s Ladder
• The Peter Principle
• How to Negotiate
• Teamwork Skills and Profiles
• Gantt Chart
• RACI Matrix
• Eisenhower Matrix
• MoSCoW Method
• FMEA Process
• Problem Solving
• Ishikawa Fishbone diagram
• 5 Whys Method
• 8 Disciplines Method
• ADDIE Model
• ORAPAPA Method
• Cynefin Framework
• Just In Time
• SMART Goals
• KISS Principle
• Birkinshaw’s 4 Dimensions
• Parkinson’s Law
• OGSM Framework
• OKR Methodology
• APQP Framework
• Theory of Constraints
• Success through Organization
• ADKAR Model
• Lewin’s Change Model
• Kotter’s 8-Step Model
• The Greiner Curve
• GAP Analysis
• Planning Templates
• Mean, Median and Mode
• Define your Data
• Pareto Principle 80/20 Rule
• Decision Matrix
• Decision Tree
• TARA Framework
• Root Cause Analysis
• Simplex Process
• Forecasting Methods
• How to use Google Trends
• Correlation vs Causation

© 2024 - Consuunt .

We're not around right now. But you can send us an email and we'll get back to you, asap.

Log in with your credentials

Forgot your details.

Essay on the Product Life Cycle | Marketing Management

In this essay we will discuss about the stages of product life cycle.

Each product has a life span when it introduced in the market means birth of a product, grows, mature and finally decline and substituted by a new product, it is a continuous process. Product Life Cycle (PLC) is a concept that provides a way to outline the different stages of a product’s acceptance, from its introduction to its decline.

Product life cycle is based on certain characteristics of products these characteristics may differ according to the nature of a product.

Following are the characteristics of products:

(i) Products have a limited life;

(ii) Product sales pass through different stages with different challenges, opportunities, and problems for the seller;

(iii) Profits rise and fall at different stages of the product life cycle;

(iv) Demand of product varies from one stage to other;

(v) Different marketing strategies are required in each stage.

Product life cycle curves are normally divided into four stages:

1. Introduction Stage:

It is the first stage when a company launched a new product by innovation. High degrees of risk are involved in introducing new product in market. During the introduction stage the growth of product’s sale is slow, because it is new in the market.

Moreover during this stage as the product is new, the company has to spend huge funds on the advertisement of product, so the profits are non-existent in this stage. A new product category requires a longer introductory period to stimulate primary demand. Even a brand that has achieved acceptance in other markets will require introduction in new markets.

Marketing Strategies during Introduction Stage:

Sales remain low in this stage. Production cost remains high due to less production it delays in the expansion of production capacity. Adoption of process remain slow. Sales of new products depend on additional factors such as product complexity and fewer buyers and price of product. In the introduction stage, profits are negative or low because of low sales and heavy distribution and promotion expenses. Much money is needed to attract distributors. Promotional expenditures are high because firm wants to inform potential consumers, induce them for product trial, and wants to increase distribution.

Prices tend to be high because costs are high due to relatively low output rates, technological problems in production, and high required margins to support the high promotional expenditures.

2. Growth Stage:

In this stage people began to adopt new product and sales increases rapidly, as new customers enter the market and old customers make repeat purchases. At this point of time marketer need to add new dealers and distributors, expansion of distribution network took place. Firm began to earn profit at increasing rate. Due to expansion of market, competitors are attracted who copy and improve on the features of the new product, therefore new firm entered in the product category.

In the last part of growth stage profit level declined due to large number of firms in the market and rising competition, but total industry sales are still raising. In this phase, the company faces a trade-off between high market share and high current profit. By spending a lot of money on product development, promotion, and distribution, the company can capture a dominant position.

cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.