What is Product Life Cycle (PLC)? A Comprehensive Guide

Every product has a story—one that begins with a big launch, soars in popularity and eventually faces decline. This inevitable journey is known as the Product Life Cycle. Understanding What is the Product Life Cycle helps businesses stay ahead, making smart decisions about marketing, pricing, and innovation at every stage. 

Whether you're launching a new product or reviving an old one, PLC strategies can keep your brand competitive. This blog will offer deep insight into the PLC. So read on and master the art of product longevity!

Table of contents  

1) Understanding Product Life Cycle  

2) Four stages of the Product Life Cycle  

3) Importance of Product Life Cycle

4) Examples of the Product Life Cycle  

5) Product Life Cycle Marketing Strategies

6) When to Use the Product Life Cycle

7) Conclusion  

Understanding Product Life Cycle 

The term Product Life Cycle defines the duration when the product is launched into the market and introduced to the customers until it’s removed from the shelves. These are the important points to remember:

1) Management and marketing professionals determine when to increase promotions, adjust pricing, expand into new markets, or modify packaging.

2) The Product Life Cycle involves strategising ways to sustain and maintain a product.

3) The Product Life Cycle includes introduction, growth, maturity, and decline.

4) Initial marketing costs are high, but sales increase as product adoption grows.

5) The concept helps companies make key decisions on pricing, advertising, expansion, and cost-cutting.

 
 

Four stages of the Product Life Cycle

 

As mentioned in the image above, every Product Life Cycle revolves around four stages- introduction, growth, maturity and decline. Usually, each stage in the Product Life Cycle delivers a different set of opportunities for marketing that directly or indirectly affects the Product sales. Let's understand each stage in detail:   

Introduction Stage  

a) The introduction stage is when the product is first launched in the market and introduced to customers.

b) Significant investment is made in promotion and advertising to build awareness and highlight the product's advantages.

c) Consumers may be unfamiliar with the product, requiring focused marketing efforts.

d) Competition is usually low, as rivals may still be developing or launching similar products.

e) Financial losses are common at this stage due to lower sales and high advertising costs.

Growth Stage 

a) The product enters the growth stage if it gains popularity and demand increases.

b) This stage is marked by rising production and expanded market availability.

c) The duration of the introduction stage varies depending on the product and industry.

d) The product becomes more widely recognised.

e) Companies may continue investing in Advertising, focusing on differentiation rather than awareness.

f) Products may be refined based on customer feedback.

g) Sales and revenue may increase, but the competition also intensifies.

h) Rival products may push companies to reduce prices which will impact profit margins.

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Maturity Stage  

a) The maturity stage is the most profitable phase of the Product Life Cycle.

b) In this stage, production and marketing costs decrease, and profit margins get maximised.

c) Market saturation occurs which increases competition and reduces net profit over time.

d) Companies may focus on innovation or new strategies to maintain market relevance.

e) Gathering customer feedback and analysing demographics helps you refine the product.

f) Competition is intense as rival companies introduce improved alternatives.

g) In this stage, sales stabilise, and companies aim to extend this stage for sustained profitability.

Decline Stage 

a) The decline stage marks the downward trend in the Product Life Cycle.

b) In this stage, an increase in competition leads to a loss of market share and declining sales.

c) Market saturation and alternative products contribute to reduced demand.

d) Companies may reduce marketing efforts as consumer trust is already established.

e) Some businesses choose to update or introduce a next-generation product.

f) If the new version is significantly improved, the company can re-enter the Product Life Cycle with a fresh launch.

According to the marketing terminologies, these four stages of the Product Life Cycle affect the changing pattern of the Product’s sales and market share over the period of time. 

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Importance of Product Life Cycle

The Product Life Cycle is crucial as it offers insights into a product's performance. It guides Management and Decision-makers in determining strategic actions for success. 

1) PLC helps companies allocate resources such as staff and budgets.

2) PLC helps you identify which products should be prioritised.

3) It guides innovation and future Product Development.

4) It supports better marketing investments and strategic decisions.

5) It facilitates proper long-term business planning.

6) It provides accurate data for informed decision-making.

7) It helps streamline internal processes for greater efficiency.  

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Examples of the Product Life Cycle

These prominent examples will illustrate the Product Life Cycle:

1) iPhone

a) In 2007, Steve Jobs and Apple introduced the first iPhone.

b) The product initially faced skepticism, with doubts about the necessity of a touchscreen.

c) Jobs spent an hour presenting the iPhone during its launch event to generate interest.

d) Apple ran six months of marketing campaigns to highlight its benefits.

e) The promotional efforts built anticipation before the official release.

2) Air Fryers

a) The air fryer was first invented in 2010.

b) It gained significant popularity in 2015.

c) The product went through the growth stage over the next five years.

d) Between 2018 and 2020, social media drove its popularity.

e) Brands relied less on marketing as users enthusiastically shared their experiences online.

3) Oldsmobile

a) Oldsmobile began producing cars in 1897.

b) Merged with General Motors in 1908.

c) Introduced the first V-8 engine in 1916.

d) Reached one million cars produced by 1935.

e) Sales peaked in 1984, marking its highest-selling year.

f) General Motors announced the phase-out of Oldsmobile in 2000.

g) The last Oldsmobile was built on April 29, 2004.

4) Coca Cola

a) On April 23, 1985, Coca-Cola introduced "new Coke" with a revised formula.

b) The change aimed to regain market share after 15 years of decline.

c) Following the launch, Coca-Cola received 1,500 daily complaint calls.

d) Protest groups gathered 100,000 supporters demanding the return of the original formula.

e) "New Coke" completed its Product Life Cycle in just 79 days.

f) The product faced intense backlash and never reached the growth or maturity stages.

g) Less than three months later, Coca-Cola announced the return to its original recipe.

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Product Life Cycle Marketing Strategies

Here’s a summary of the key marketing strategies pertaining to Product Life Cycle:

When to Use the Product Life Cycle

You must use the Product Life Cycle when launching a new product, assessing product performance, planning for product updates or discontinuation, and managing competition. It's important to double-check the relevance of the Product Life Cycle to your specific industry or product type, as the dynamics may vary.

Conclusion  

Understanding What is the Product Life Cycle is essential for maximising a product’s success. By recognising each of its stages namely introduction, growth, maturity, and decline, businesses can adapt proper strategies, optimise their marketing efforts, and stay competitive. Be it extending a product’s lifespan or planning its next iteration, PLC ensures long-term market sustainability.

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