Stages of Product Life Cycle

Definition

The Product Life Cycle (PLC) is a theoretical model that describes the stages a product goes through from introduction to the market, through growth and maturity, and eventually its decline.

Stages of Product Life Cycle

Introduction Phase: This is when the product is introduced to the market. During this phase, sales growth will be slow as the market is not yet aware of the product.
Growth Phase: This phase features rapid market acceptance and increasing profits. Investment is likely to be high to meet growing demand.
Maturity Phase: During this stage, the product achieves acceptance by most potential buyers and sales begin to plateau. The product undergoes enhancement or packaging changes to maintain interest.
Decline Phase: In this final phase, the market starts shrinking, sales decline, and any profit made will be due to cost cutting measures.

Importance of Understanding the Product Life Cycle

Understanding the Product Life Cycle can help in making better business decisions related to product development, marketing strategies, and product pricing.
It can inform decisions relating to investment levels, whether to enhance or withdraw a product, and about the best time to innovatively adapt a product.
The PLC can provide insight into potential market trends and consumer behaviour, allowing an organisation to stay ahead.

Skills Required With Product Life Cycle management

Product Development: Recognising the need for a new product, developing the product concept, and executing the project.
Market Analysis: Understanding market conditions, customer behaviour, and competitive trends.
Risk Management: Assessing potential threats or issues that could come up during each phase of the Product Life Cycle and planning to mitigate these risks.
Strategic Decision Making: Creating a game plan for each phase of the Product Life Cycle by using data collected from market analysis and risk management.

Understanding and applying the Product Life Cycle in real-life scenarios can significantly improve business decision-making processes and the chances of product success. This model is dynamic and may undergo adjustments based on consumer behaviour and market conditions.