A product is like a human being. It is born, grows up fast, matures and then finally passes away. The product life cycle discusses the stages which a product has to go through since the day of its birth to the day it is taken away from the market. (Image courtesy – arundelstreet.com) Show
However, the basic difference in case of human beings and products is that a product has to be killed by someone. Either the company (to bring better products) or by competition (too much external competition). There are several products in the market which have lived on since ages (Light Bulbs, Tubelights), whereas there are others which were immediately taken off the shelf (HD DVD). Thus the Product life cycle deals with four stages of a products life. Stage 1 of Product life cycle – Introduction of the product.The stage 1 is where the product is launched. A product launch is always risky. You never know how the market will receive the product. There have been numerous failures in the past to make marketers nervous during the launch of the product. The length of the introduction stage varies according to the product. If the product is technological and receives acceptance in the market, it may come out of the introductory phase as soon as it is launched. Whereas if the product is of a different category altogether and needs market awareness, it may take time to launch. Characteristics of Introductory stages of Product life cycle
Stage 2 of Product Life Cycle – Growth of the productOnce the introductory phases are over, the product starts showing better returns on investment. Your customers and channels begin responding. There is better demand in the market and slowly the product starts showing profits. This is a stage where competition may step in to squash the product before it has completely launched. Any marketing mistakes done at this stage affect the product considerably as the product is being exposed to the market and bad news travels fast. Thus special care has to be taken in this stage to ensure competition or bad decisions do not affect the growth stage of the product. Characteristics of Growth stage of Product life cycle
Stage 3 of Product Life Cycle – Maturity stage of the productOne of the problems associated with maturity stages in a technologically advanced environment is the problem of duplication. Not only is the product available in duplicate markets, but also there are several competing products which arise with the same features and capabilities. As a result, the USP’s of the product become less attrative. Along with competition, Penetration pricing becomes a weapon for competitors. Competitors sell products with the same features at lesser prices thereby trying to penetrate in the market. Nonetheless, The sales of a product (especially sales from return customers) is at its peak point during the maturity stages. The growth of sales may be lesser, but the sales revenue of the organization is maximum during the maturity stage of product life cycle. Characteristics of Maturity stages of Product life cycle
Stage 4 of Product Life Cycle – Stage of decline1 product, 10 competitors, minimum profits, huge amount of manpower and resources in use – A typical scenario which a product might face in its last stage. In this stage the expenditures begin to equal the profits or worse, expenses are more than profits. Thus it becomes a typical scenario for the product to exit the market. It also becomes advantageous for the company as the company can use resources it was spending on the declining product on an altogether different project. Characteristics of Decline stages of Product life cycle
Summary of the product Life CycleCharacteristics of the Product life cycle
Objectives of Product Life Cycle
Strategies of Product life Cycle
Video on the Product Life CycleWhat should product strategy in maturity phase of PLC?Product growth strategies
adding new product features or support services to grow your market share. entering new markets segments. keeping pricing as high as is reasonable to keep demand and profits high. increasing distribution channels to cope with growing demand.
What happens during the growth stage of the PLC?Growth. During the growth stage, consumers have accepted the product in the market and customers are beginning to truly buy in. That means demand and profits are growing, hopefully at a steadily rapid pace. The growth stage is when the market for the product is expanding and competition begins developing.
What are the strategies for maturity stage?Marketing Strategies for the Maturity Stage. Expand the Customer Base. ... . Increase the Usage Rate. ... . Invest in Research and Development. ... . Modify the Product. ... . Price to Beat the Competition.. What companies are in the maturity stage?Companies like Apple, Amazon, and Xbox are all examples of companies in the maturity stage. They are well known, trusted, and continue to hold a high market share in their industries.
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