A product, from its inception, goes through a series of stages. This is known as the product life cycle. Each stage is important and affects the whole. The process depends on a number of factors, such as the quality of the product, price, competition, or customer needs and expectations. Below is a brief description of each stage.
What exactly does the product life cycle mean? Definition of the term
The product life cycle is the period during which a product is available on the market. It begins with its introduction to the market (i.e., the development phase) and ends when the product is withdrawn from sale (the liquidation phase). In addition to these two phases, the product life cycle also includes the growth and maturity phases.
Phases of the product life cycle
The growth phase is the time when a product is introduced to the market. This is a relatively short period of time, usually lasting 6 to 12 months. During this time, the manufacturer tries to build a brand and gain market share. Unfortunately, the initial popularity often does not last long and sales drop off after a few months.
The growth phase begins when the product begins to become more popular and sales increase. This phase can last several years or even decades. During this time, the manufacturer must constantly invest in marketing to maintain its position in the market. Unfortunately, even the most popular products have a limited lifespan and after a while their sales begin to decline.
The maturity phase is a period of stable sales. The product is already well known and has its circle of regular customers. During this time, the manufacturer must focus on maintaining this level of sales and minimizing production and marketing costs. This usually lasts for several years or even decades.
The liquidation phase is the time when a product is withdrawn from sale. This is because its sales have dropped to the point where it is no longer profitable to produce and maintain it in the market. During this time, the manufacturer must focus on minimizing losses and preparing a new product that will have a chance of success in the market.
How to plan the product life cycle well?
1. research and development – this is the time when a company tries to develop a new product or service and find out whether it can bring it to market. During this stage, investment is mainly made in research and testing of prototypes of the new product. If a company already has an existing product, it may invest in improving it or expanding its offerings with new features. Companies may also conduct market research to better understand customer needs and analyze competitors. The duration of this stage can be very long – from a few months to several years – and can be very expensive. Therefore, companies try to limit risks by investing only in projects that have a good chance of success in the market.
2 Market launch – once a company has developed a new product and determined that it can launch it, the time comes for commercialization. In this stage, the main investment is made in marketing to promote the new product to potential customers. The company must also determine the price of the product, and decide where and how it will be available to customers. The duration of this stage can vary greatly – from a few months to several years – depending on how quickly the market for the product develops.
3. growth – this is the time when a new product becomes popular with customers and sales grow rapidly. Companies then mainly invest in developing their infrastructure and hiring new employees to meet the growing demand. The duration of this stage can vary widely – from a few months to several years – depending on how quickly the market for the product develops.
4. maturity – this is the time when sales of a product stabilize or even begin to decline. Companies then mainly invest in maintaining existing sales and looking for new markets. The duration of this stage can vary greatly – from a few months to several years – but it is usually a period of several-some years after the product has been launched.
5. decline – this is the time when sales of the product drop sharply and the company must either find a new market or withdraw the product from sale. The duration of this stage can vary greatly – from a few months to several years – but it is usually a period of several years after the product has reached the peak of popularity. Remember that the life cycle of a product can vary depending on the industry you are in and how fast the market for your product is developing. That’s why it’s important to analyze each stage of the product life cycle well before you start commercializing your product.
