A model which draws an analogy between the span of a human life and that of a product, suggesting that, typically, a products life consists of four stages. Each stage is different and requires marketing strategies unique to the stage. Marketing strategies in the decline stage of product life. This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a products revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. The decline stage is the stage in which the products sales decline. Consumers will typically stop buying this product in favour of something newer. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. The concept of the product life cycle is today at about the stage that the copernican view of the universe was 300 years ago. Product life cycle iowa state university extension. In addition, hofer developed descriptive propositions for each stage of the. Starbucks is the market leader in the beverage industry. The development stage of the product life cycle occurs when a corporation finds and develops a new product idea. Following the maturity stage of the plc, many products at some point will enter the decline stage.
Decline stage of product life cycle has following characteristics. By explaining the product life cycle stages, we clearly define the phase, each with its own characteristics that will have different impact on each reader depending on their particular situation. The product life cycle plc is a marketing concept that describes the way the revenues from the sale of a product behave over time. The product life cycle of an apple iphone is also used as an example in the article. The product life cycle is the course of the life of a product from when the product is in development to after it has been removed from the market. Each stage is associated with changes in the product s marketing position. This happens to most product forms and brands at a certain moment. Technological obsolescence, change in customer tastes, market demand saturation, or introduction of a new better substitute etc. When a product first launches, sales will be low and grow slowly. Product life cycle 4 stages of products life feedough. The product life cycle has four stages, from its introduction in an office to the products decline and removal from store shelves.
This article is focusing on a number of the primary product life cycle management techniques that can be used to optimize a product s revenues in respect to its effective positioning in a market during the introduction stage of the product life cycle. Stages of the product life cycle principles of marketing. The decline stage of the product life cycle the marketing. The first stage of the product life cycle is the development stage at which the new product generates. The product life cycle can be a useful tool in planning for the life of the product, but it has a number of limitations. The 6 stages of the product life cycle hubspot blog. From these early studies a biologicallyinspired life cycle of the product emerged that was divided into four phases birth, growth, maturity, and decline, together with the familiar bellshaped curve describing a simple parabola upon an axis of sales. Characteristics of the product life cycle stages and.
Product life cycle theory comprises analysis of a products life in the market from the time it has been launched to its withdrawal from the market. This study focuses on the importance of barriers to entry in five industries and examines the impact of industry and product life cycle stages on barriers to entry. The product life cycle plc is a biological metaphor that traces the stages of a products acceptance from its introduction birth to its decline death. Pdf this article attempts to show how despite the general notion that the life of a product ends after it enters the decline phase of the product. May 09, 2014 strategies taken to establish new product category what measures nil should take to sustain the image of a popular brand image. Usually a product decline is accompanied with a decline of market sales. Marketing strategies in the decline stage of product life cycle. A brief summary of starbucks history and a detailed introduction on product. The product life cycle stages are 4 clearly defined phases, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. However the process is in four independent stages which are called introductory stage, growth stage, maturity stage and decline stage. Major changes in business strategy are usually required during three stages of the life cycle. Product life cycle ijbm international journal of business. Products typically go through four stages during their lifetime.
Product life cycle stages of various products in consumer electronics most products follow a five stage product life of introduction, growth, maturity, decline. There is a new product category in the market that provides a better solution and has provided enough incentive for consumers continue reading the decline stage of the product life cycle. The decline stage is a significant reduction in sales volumes. Stages of the product life cycle wiley online library. The following strategic considerations are important during this phase of product life cycle. A very simple explanation of the product life cycle theory. This article attempts to show how despite the general notion that the life of a product ends after it enters the decline phase of the product life cycle. Product life cycle stages of various products in consumer electronics most products follow a. Typically, the plc is drawn as a bell curve with the life cycle being divided into several stages. In the life of business, product life cycle passes through four stages. Some products are tied to specific business cycles or have seasonal factors that impact growth. Not all products follow a smooth and predictable growth path.
Product life cycle stages 4 plc stages with examples. Sometimes it is difficult for a company to conceptualize the decline signals of a product. Contemporary research have moved beyond the oneofakind product life cycle model with isolated phases of introduction, growth, maturity, and decline. Strategies taken to establish new product category what measures nil should take to sustain the image of a popular brand image. The concept is used as a tool to formulate marketing strategies appropriate to each of the stages. The product life cycle includes five stages defining the journey of a product in the market. The decline stage is the stage in which the product s sales decline. In some cases, the company will cut its loses and discontinue the product. When a product enters the life cycle, it faces many obstacles. Mar 04, 2019 the product life cycle is the course of the life of a product from when the product is in development to after it has been removed from the market. They are further popularly referred to as the four product life cycle stages in marketing.
Each stage of product life cycle can be characterized in terms of at least four aspects sales volume, amount of profits, level of promotional efforts and expenses, and degree of competition. Product life cycle a concept that provides a way to trace the stages of a products acceptance, from its introduction birth to its decline death. This stage is the beginning of the end of the product. Product life cycle overview, four stages in the product. If the characteristics of the product life cycle stages and their marketing implications are understood properly, the product may have made it to the final stage in the plc.
Business life cycle understanding the 5 different stages. The major objective of the firm that continues with the product in the decline stage of product life cycle is to survive and make some profit out of the product. Another less drastic choice is to retain the product in the product line, but to reduce marketing costs. Let us now discuss each step of the products life in details below. Product life cycle can be defined as the analysis of the complete life span of a product. Does the decline phase of the product life cycle ends up in death. Pdf impact of product life cycle stages on barriers to entry.
Its imperative for a business to fully understand all four stages of the product life cycle. The product life cycle contains four distinct stages. Life is a series of developments and changes, resulting in peaks, decline and eventually, demise. Similar to the maturity stage, the decline stage may last for many years, especially for products that have been adopted by a. The understanding of a products life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the products success or failure. Pdf does the decline phase of the product life cycle ends up in. While some products may stay in a prolonged maturity state, all products. In this stage, company profit is small if any as the product is new and untested. Stages include introduction, growth, maturity and decline and are explained in detail here. The company may also choose to reduce the cost even more and continue to sell the product or to add new features and find new uses for it. A model which draws an analogy between the span of a human life and that of a product, suggesting that, typically, a product s life consists of four stages. Jul 09, 2018 this pdf will tell you about how companies can benefit by understanding the product life cycle and how can they price accordingly. All 4 stages of the product life cycle require a different market research strategy, according to blog. All 4 stages of the product life cycle require a different.
The life cycle has four stages introduction, growth, maturity and decline. One choice involves product deletion, where a product is dropped from a firms product line. Although competition may be light, the introductory stage usually features frequent. Every product has a life cycle and time spent at each stage differs from product to product.
It is an essential tool for analyzing the prospective success or potential of a. When a product reaches the decline stage of the product life cycle, a firm has two choices. Before i tell you about the product life cycle of an apple iphone, let me tell you a bit about what is a product. Usually, the firm will have tried to keep the product as long as possible in the maturity stage. Product life cycle of apple iphone ebook super heuristics. The last of the stages of a product life cycle is the decline stage. Descriptive model for the life of products in general. You can use various marketing strategies in each stage to try to prolong the life cycle of your products. September 2, 2019 product life cycle refers to the study of the life time process of a product in the market. Mar 28, 2018 every product we encounter has a life cycle. Despite the challenges decline, there may still be opportunities for manufacturers to continue making a profit from their product. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
This cycle varies according to industry, product, technology, and market. There are some major product life cycle management techniques that can be used to. During this final phase of the product life cycle, the market for a product will start to decline. Finally, product life cycle strategies for the decline stage must be chosen. Marketing strategy and the product life cycle bizfluent. The most complete project management glossary for professional project managers. The last of the product life cycle stages is the decline stage, which as you might expect is often the beginning of the end for a product. The product life cycle plc starts with the products development and introduction, then moves toward withdrawal or eventual demise. Dec 15, 2010 the product life cycle plc is a marketing concept that describes the way the revenues from the sale of a product behave over time. This is the case not only for living beings, but also for consumer products. The theory of a product life cycle was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence, a period divided into the phases of. Product life cycle and marketing management strategies. A product form has reached the decline stage when it becomes clear the market is no longer able to sustain itself, unless something unexpected or unusual occurs in the market e.
Stage of the product life cycle, business strategy, and. While some products may stay in a prolonged maturity state. The product begins to lose consumer appeal and sales drift downward, such as when buggy whips lost out with the advent of automobiles. Starbucks is known worldwide for its highquality food products and the differentiated third place atmosphere. On the same lines, a product also has a life cycle of its own. Each stage is different and requires marketing strategies unique to. Products go through four distinct stages in the life cycle, each with its own unique marketing strategies. The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. New product development process is just the starting point of the product life cycle plc. Product life cycle definition what is product life cycle. Apr 09, 2020 we are here to educate on the product life cycle stages and help people understand the strenths and weaknesses of this concept. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies and tactics for presenting a product. Product life cycle is the progression of an item through the four stages of its time on the market.