The Product life Cycle “Introduction – Growth – Maturity – Decline”
- January 16, 2024
- Posted by: admin
- Category: Uncategorized
Product life Cycle:
As humans, Animals, & plants have a life cycle, also products do.
The “product Life Cycle” term refers to the length starting from the introduction of the product in the market, passing through many stages then reaching the removal stage, or the recycling point.
The product life cycle is mainly described in 4 stages continuously: “Introduction”, “Growth”, “Maturity”, and “Decline”.
Let’s simply describe each one of them, and the product status in each stage:
Every product starts from an Idea, and then the product launches the market for the first time, the company is mainly focusing on advertising this time to better offer the product to the clients which are known as “Awareness”.
So they spend a huge investment on marketing campaigns to make consumers aware of their product, and also in this stage, the competition is at its lowest level or even not exist as the competitors may still looking for the offers and the product nature, features, flaws, and decide which competition strategy they will follow.
The financial dimension may be negatively affected at this stage, either the company decides to offer their product at a low price to catch the customer’s eye, or the revenue from the product is not fair enough to cover the total cost yet
In case of the success of the product, it’s directly moved to the next stage “Growth Stage”.
At this stage the product becomes more popular, the demand increases, customer engagement is magnificent, and the sales curve moves upward.
Also, there is an increase in production, and expansion in the availability of the product, and the price is changeable due to the competition which may be at a higher level in this stage.
The Maturity stage starts at the time when the costs of producing and marketing decline.
This stage normally is the most profitable one, but the most dangerous one too, the competitors usually launch the market with heavy strategies to kick your product out, so, if you focus on awareness in the first stage, you better focus on differentiation in this stage, to keep your product existed in the market, and capture the customer’s attention.
This normally works with gathering feedback from clients, speaking about the product improvements, and raising differentiation voice
The Decline Stage is the shortest in the whole life cycle, either the company decides to transform a new Idea into a new product and stop supporting the old one such as Samsung with their “Smartphones”, or decides to reproduce the same product in a new generation such as “Apple” with their “iPhone”.
Finally, Every Company should have an R&D Department to keep an eye on the product life cycle and decide what is the best to do in each stage