Product life cycle (PLC) is a model that describes the stages a product goes through from inception to retirement.
The Stages of the Product Life Cycle are following:
Development:
The product is in the research and development stage, and the company is working on bringing it to market.
Introduction:
The product is first introduced to the market. Sales are low, and the company incurs high costs for marketing and promotion to create awareness and educate potential customers about the product.
Growth:
The product gains acceptance, and sales begin to increase rapidly.
Maturity:
Sales growth slows, and the product reaches its peak.
Decline:
Sales begin to decrease as the product becomes less popular, and the company may phase out the product or invest in revitalizing it through rebranding or redesign.
What is the product life cycle?
The product life cycle describes the stages a product goes through, from its initial introduction to its eventual decline.
The product life cycle stages are Development, Introduction, Growth, Maturity, and Decline. Each stage has different sales, costs, and competition characteristics.
A model helps manage a product’s profitability over time and identify new product opportunities. It’s important to note that the product life cycle varies for different products and industries, and not all products will go through all stages.
What are the stages of the product life cycle?
The stages of the product life cycle are:
Development:
The product is in the research and development stage, and the company is working on bringing it to market.
Introduction:
The product is first introduced to the market. Sales are low, and the company incurs high costs for marketing and promotion to create awareness and educate potential customers about the product.
Growth:
The product gains acceptance, and sales begin to increase rapidly. And competition increases.
Maturity:
Sales growth slows, and the product reaches its peak.
Decline:
Sales begin to decrease as the product becomes less popular, and the company may phase out the product or invest in revitalizing it through rebranding or redesign.
It’s important to note that the product life cycle varies for different products and industries, and not all products will go through all stages.
International Product Life Cycle
The international product life cycle (IPLC) theory is an extension of the product life cycle theory that considers the differences in the stages of a product’s life cycle in different countries.
The stages of the IPLC are:
- Multinational phase: The company begins exporting the product to other countries.
- Global standardization phase: The company may standardize its product and marketing strategy across different countries.
- Global localization phase: The company may adapt its product and marketing strategy to meet different countries’ specific needs and preferences.
- Maturity and decline phase: Sales in different countries may reach maturity and decline at different times.
The IPLC theory suggests that as a product progresses through these stages, firms may need to adjust their marketing strategies and production methods to remain competitive.
Breaking Down the Product Life Cycle Theory
The product life cycle theory is a model that describes the stages a product goes through from its initial introduction to its eventual decline.
It is a valuable tool for managing a product’s profitability over time and identifying new product opportunities.
The different stages break down of the product life cycle are:
Development Breaking down
This stage is characterized by high costs and low revenues as the company invests in creating and testing the product.
Introduction of break down:
This stage can be challenging as the product may need to be well-received by the market, and the company may need to change its marketing strategy.
Growth of Break down
This is the stage where the company can start seeing profits, but it also means they have to invest in marketing, promotion, and distribution to keep the growth going.
Maturity break down
Sales growth slows, and the product reaches its peak. . This is the stage where the company needs to focus on retaining its customers and maintaining profitability.
Decline break down
Sales begin to decrease as the product becomes less popular, and the company may phase out the product or invest in revitalizing it through rebranding or redesign.
The product life cycle theory is only sometimes accepted, and some criticisms have been directed toward its assumptions and applicability in certain situations.
1. Development Product Life Cycle Theory
The Development stage of the Product Life Cycle is the initial stage of a product’s life cycle.
A product is still in the research and development phase, and the company is working on bringing it to market. This stage is characterized by high costs and low revenues as the company invests in creating and testing the product.
The company also develops the product’s design, packaging, and branding. The product is then tested and refined, and any necessary adjustments are made before launch.
This stage is crucial for the product’s success, as it sets the foundation for its introduction and growth in the market.
It also poses a significant risk as the product may need to be better received by the market, and the company may need to change its marketing strategy.
The company must also decide on the product’s production, distribution, and marketing. This stage is considered the riskiest, most uncertain, and most creative. It is also essential for the company to have a clear vision of its product’s future development.
2. Growth Product Life Cycle Theory
The Product Life Cycle’s Growth stage is where the product gains acceptance and sales increase rapidly.
The company’s primary focus during the growth stage is to increase market share and expand distribution.
This can be achieved through various marketing strategies such as advertising, promotions, and sales incentives. The company also invests in expanding production and distribution and building relationships with suppliers and distributors.
As the product becomes more popular, competition increases, and the company may have to differentiate its product to maintain its market position.
3. Maturity Product Life Cycle Theory
The Maturity stage of the Product Life Cycle is where sales growth slows, and the product reaches its peak.
This is the stage where the company may focus on maintaining market share and maximizing profits through cost-cutting and efficiency measures.
This can be achieved through various strategies, such as offering discounts and promotions, implementing loyalty programs, and focusing on customer service.
The company also focuses on cost-cutting measures such as streamlining production and distribution and reducing expenses without sacrificing quality.
4. Saturation Product Life Cycle Theory
The Saturation stage of the Product Life Cycle is where the product’s sales growth slows and eventually reaches a point of decline.
The market for the product becomes saturated, and the company’s sales and profits start to decrease.
During the saturation stage, the company’s primary focus is to maintain its market share and maximize profits through cost-cutting and efficiency measures.
This can be achieved through various strategies, such as offering discounts and promotions, implementing loyalty programs, and focusing on customer service.
This is a critical stage for the company as it marks the end of the product’s life cycle, and the company must decide whether to continue selling the product or phase it out and discontinue it.
5. Decline Product Life Cycle Theory
The Decline stage of the Product Life Cycle is the final stage in a product’s life cycle, where sales decrease and eventually reach a point .
During the decline stage, the company’s primary focus is to minimize losses and extract as much value as possible from the product before discontinuing it.
This can be achieved through various strategies, such as reducing costs, cutting prices, or repositioning the product to target a different market.
The company may also focus on liquidating the remaining inventory or selling off assets related to the product.
As the demand for the product decreases, the company may face increased competition and a decrease in profitability.
This is a critical stage for the company as it marks the end of the product’s life cycle, and the company must decide whether to continue selling the product or phase it out and discontinue it.
6.Product Life Cycle Examples
The Product Life Cycle (PLC) theory can be applied to various products, including consumer goods, industrial goods, and services.
Cell phones:
Cell phones go through the PLC from the introduction stage, the growth stage, the maturity stage, and finally, the decline stage.
For example, the first generation of smartphones, such as the Blackberry and Motorola RAZR, have reached the decline stage as newer models with more advanced features have been introduced.
Cars:
Cars also go through the PLC from the introduction stage, the growth stage, the maturity stage, and finally, the decline stage.
For example, the Ford Model T was introduced in 1908 and peaked in the 1920s, but by the 1930s, it was in decline as newer models with more advanced features were introduced.
Soft drinks:
Soft drinks go through the PLC from the introduction stage, the growth stage, the maturity stage, and finally, the decline stage.
For example, Coca-Cola was first introduced in the late 19th century and reached its peak in the mid-20th century, but by the 21st century
It was in decline as newer types of beverages like energy drinks and flavored water were introduced.
Fashion:
Fashion products also go through the PLC from the introduction stage, the growth stage, the maturity stage, and finally, the decline stage.
For example, a particular clothing line may be introduced, gain popularity, reach its peak and eventually fall out of fashion.
Tech Product:
Tech products also go through the PLC from the introduction stage, the growth stage, the maturity stage, and finally, the decline stage.
For example, a new tablet computer may be introduced, gain popularity, reach its peak, and eventually be phased out as newer models with more advanced features are introduced.
Product Life Cycle Examples
The Product Life Cycle (PLC) theory can be applied to various products, including consumer goods, industrial goods, and services.
Music streaming services:
Music streaming services, such as Spotify and Apple Music, go through the PLC from the introduction stage, through the growth stage, the maturity stage, and eventually the decline stage.
For example, Spotify was first introduced in 2008 and has seen rapid growth in popularity .it has reached its maturity stage with many users and competitors in the market.
Electric Cars:
Electric Cars go through the PLC from the introduction stage, through the growth stage, the maturity stage, and eventually the decline stage.
For example, the first electric cars were introduced in the early 1900s, but they gained popularity more recently.
Electric cars are currently in a growth stage as more and more companies are introducing new models, and governments are offering incentives to purchase electric cars.
Smart Home Devices:
Smart home devices, such as Amazon Echo and Google Home, go through the PLC from the introduction stage, through the growth stage, the maturity stage, and eventually the decline stage.
For example, Amazon Echo was first introduced in 2014 and has seen rapid growth in popularity.
Social media platforms:
Social media platforms, such as Facebook and Instagram, go through the PLC from the introduction stage, through the growth stage, the maturity stage, and eventually the decline stage.
For example, Facebook was first introduced in 2004 and has seen rapid growth in popularity.
Online education platforms:
Online education platforms, such as Coursera and Udemy, go through the PLC from the introduction stage, the growth stage, the maturity stage, and eventually the decline stage.
For example: Coursera was first introduced in 2012 and has seen rapid growth in popularity. It has now reached its maturity stage, as many other online education platforms have been introduced.
Vine Cycle Examples
The Vine Cycle, also known as the “Vine Life Cycle” is a specific application of the Product Life Cycle (PLC) theory to the social media platform Vine.
Seed:
This is the initial stage when a new Vine account is created, and the user begins to post content. This stage is characterized by low numbers of followers and views.
As users continue to post content, they gain a following, and their Vines receive more views. This stage is characterized by a moderate number of followers and views.
Climbing:
The user’s Vines have gained significant popularity and many followers and views. This stage is characterized by high numbers of followers and views.
Peaking:
The user’s Vines have reached the peak of their popularity and have the maximum number of followers and views. This stage is characterized by very high numbers of followers and views.
Withering:
The user’s Vines are no longer receiving as many views, and their followers are decreasing. This stage is characterized by decreasing numbers of followers and views.
Dying:
The user’s account is no longer active, and their Vines are no longer being viewed. This stage is characterized by insufficient numbers of followers and views.
It’s worth noting that Vine was a short-form video hosting service where users could share six-second-long looping video clips .
it was launched in 2013 and was acquired by Twitter in October of that year. In 2016, Twitter announced it would discontinue the Vine mobile app.
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