PRODUCT LIFE CYCLE

The “product life cycle” is the time between when a product first hits the market and when it’s taken off the shelves. It’s a concept used by management and marketing professionals to decide whether it’s time to improve marketing, lower prices, expand into new markets or switch packaging. The process of planning how to consistently support and sustain a product is known as product life cycle management.

Like individuals, products also have life cycles. Introduction, growth, maturity, and decline are the four stages of a product’s life cycle.

A product’s life starts with an idea, and given the constraints of today’s business world, it’s unlikely to progress unless that idea has gone through R&D and proven to be workable and potentially profitable. After that, the product is created, promoted, and launched. Product development is a step in several product life cycle models, even though the product has not yet reached the market.

Introduction Stage

In the introduction phase, customers are first introduced to the new product. In general, a company must invest significantly in marketing and advertising to educate consumers about the product and its benefits, especially if the item’s function is largely unknown.

There is frequently little to no competition for a product during the debut stage because rivals may only be getting a first glance at the new offering. Yet, because sales are typically lower at this point, there may not be enough special pricing to encourage customer participation, and the sales approach is still being scrutinized, businesses still frequently have poor financial outcomes.

Growth Stage

The growth stage follows if the product is a success at the introduction stage. It is distinguished by rising demand, increased output, and increased availability. Different sectors and products will require different lengths of time for a company’s product to enter the growth phase.

The product’s popularity and recognizability increase throughout the growth phase. A company could choose to invest a significant amount of money in advertising even in the face of intense competition for a particular product. But instead of bringing the products to the market, marketing initiatives are probably designed to set them apart from the competition. A company can further improve its product by adding features in response to customer input.

During the growth phase of the product life cycle, sales and revenue rise, which has a favorable financial impact. Competition increases when other products hit the market, which could force the business to lower its prices and accept lower profit margins.

Maturity Stage

The phase of the product life cycle, when production and marketing costs start to decline, is the most profitable. Some experts refer to the maturity stage as the point at which sales volume has “maxed out” due to market saturation with products, increased competition compared to earlier stages, and declining profit margins.

Based on the product, a corporation may start thinking about how to innovate it or introduce new strategies to expand its market position. This means getting more client feedback and finding out more about their characteristics and preferences.

The competition is fiercest at the maturity period. When other businesses have had enough time to produce competing and improved products, customer competition is often at its peak. For as long as is practical while maintaining constant sales levels, a company wants to maintain its product in this mature stage.

Decline Stage

As rivalry increases as more companies strive to imitate its success, the product may lose market share and begin to degrade. Product sales begin to decline as a result of market saturation and the availability of substitute products, and the company may decide not to pursue further marketing initiatives because clients may have already decided whether or not to remain loyal to the company’s products.

If a product is completely phased out, the company will stop developing support for it and will stop all marketing activities. As an alternative, the company could redesign the item or release a completely redesigned model for the next generation. The company may elect to reenter the product life cycle by releasing the upgraded version on the market if the upgrade is important enough.

A product’s life cycle stage has an effect on how it is promoted to consumers. A fresh product must be explained, whereas a mature product must be set apart from its rivals.

Examples of Product Life Cycles

Many American brands have faded away and disappeared. Some of these could have been saved if the product lifecycle had been better managed, but  it may have been too late.

Oldsmobile

In 1897, Oldsmobile started making automobiles. The business used the first V-8 engine in 1916 after joining forces with General Motors in 1908. By 1935, one-millionth Oldsmobile had been manufactured. Oldsmobile sales reached their peak in 1984, selling more vehicles than in any other year. The last Oldsmobile was produced on April 29, 2004, after General Motors announced in 2000 that it would phase off production.

Woolworth Co.

Francis Winfield Woolworth established the general merchandise retail establishment F.W. Woolworth Co. in 1905. In 1997, Woolworth shuttered the final of its variety stores in the United States due to increased competition from other bargain retailers, and it started focusing more on athletic gear. Around 2,250 Woolworth outlets were spread out across the United States and Great Britain by 1929.

Coca-Cola

On April 23, 1985, Coca-Cola unveiled the “new Coke” formula for their popular beverage. Coca-Cola chose to introduce a new formula in the hopes of reigniting consumer interest in the product after its market-share advantage had dwindled over the previous 15 years. Following the change’s introduction, Coca-phone Cola’s line started receiving 1,500 calls daily, many of which were complaints over the modification. 100,000 people were enlisted by protest groups to endorse their campaign for the return of “vintage” Coke.