A product, whether in the technology, fashion, real estate, media & entertainment industry, or any other sector, undergoes various cycles of ups and downs. From being just an idea to becoming a fully fledged product, and then witnessing decline, the Product Life Cycle is a journey that every consumer or business product must go through. With the intent to help you in this area of management studies, we will touch upon every crucial aspect.
The Real Meaning of Product Life Cycle
The Product Life Cycle literally means the life of a product from its inception till its removal from the market. It is a method created to know the various product life cycle stages and the challenges and solutions to make it grow. One of the reasons for this thorough division is to understand each stage to its very core. A product-based business can only grow if that product is on the right shelf, at the right time, and at the right location. This seems easy, but it is much more difficult than that.
Product Life Cycle Stages: As A Student, You Must Know
Theory about PLC strategies is quite easy to understand. However, when put into practice, most students face a dilemma and are challenged by the prospect. Hence, going through each stage will help you in your product development or writing an assignment on it.
Introduction
From the heading, you can guess this is where the product is introduced. But what does it include, you ask? Here, a basic strategy is formed revolving around the product, where areas like marketing, advertising, and investment are discussed. Should the product reach the masses or just be advertised to a limited population?
At the introduction stage, various factors come into play:
- Sales will be a bit lower as the idea of demand generation is key.
- Consumers are taught about the product, generally, what kind of benefits they can expect from the item.
- Marketing is key because positioning your product in the market will define its future viability.
At this stage, many products have failed because they haven’t met consumer needs, were not innovative, or were not sold at the right price, among other factors. Thus, in-depth care and analysis are necessary.
Growth
If a product successfully breaches the introduction stage, then the consumers welcome it to the growth stage. Some visible factors here include strong demand and customer acceptance. Furthermore, this is the stage where production is taken to the next level to meet the growing demand. Witnessing market acceptance, many competitors or even counterfeits can enter the economy. This is where the distinct brand image created through your product is helpful.
Moreover, the decline in prices may come into effect as competition is present. And if the customer is tempted to buy the competition, then your brand loyalty is going for a ride. Marketing and advertising done in the introduction stage, their rewards will be reaped here.
Maturity
This is the Mount Everest moment of your product. This is where the peak will be formed. The highest market share of your product, maximum consumer acceptance, peaking sales, best profit, and other best possible product-related things happen in the maturity stage. Highest sales and profit mean that you don’t have to spend a single AUD on your product’s advertisement and marketing.
Maturity of any product can also be witnessed when:
- Market saturation occurs when the product can’t further penetrate the domain in which it functions.
- Sales and profit have been stabilising for many quarters and years.
- Consumers switch to competition.
- Retailers will not promote your product.
Decline
A stage where the product finally witnesses the declining numbers from the business front and market potential is what decline is all about. As competition copies your product and sells at lower price points, your business declines, and the sun sets on your product.
Various reasons lead to the decline of any product, which include:
- Customers don’t feel the need to buy the product at your price point; they consume competitors’ products.
- No innovation leads to unmet customer needs.
- A better alternative is available in the market.
- Brand image might have taken a nose dive.
Product Life Cycle: Importance From A Student's Perspective
Product life cycle in businesses is a unique aspect of gathering learning in the most realistic manner, which is otherwise not possible for many. Thus, the importance of PLC for students is countless and is highlighted below:
Gaining Ground In Business Concepts
How the journey of a product from rise, peak, and decline is displayed is well understood when students go through various stages. Introduction, Growth, Maturity, and Decline are the best steps in order to have in-depth ideas and understanding of any product. From just being an idea to ending with a decline shows natural progression.
Enhancing Knowledge of Marketing
Promoting any new or already existing material is a difficult task because it will be denoted through the feeling of that advertisement. It is a careful as well as curious procedure for students. Forming a plan at each stage of the process gives an undue advantage over those students who haven’t learnt and applied PLC strategies.
Real World Application
The PLC concept allows students to apply their theoretical knowledge in the real world. By analysing how businesses build strategies and apply them to products, students can get an analytical understanding of the same. Thus, the gap between classroom education and practical business decision-making learning is erased.
Encouraging Innovation
Any new product that takes the market by storm will have some level of innovation, which is often the case for dynamic learning. This gives room to innovation and adaptability in the changing game of markets. Learning how a product remains competitive, getting to grips with the life of the product, and continuous improvement are key.
Adept Awareness About Finance
An area of taboo for many students, finance, after PLC, many students will have a better understanding of the subject. How to source capital, the budget allocation for the raw material, pricing strategies, sales performance, profitability, and other financial aspects will be covered in detail. Thus, after going through the product life cycle stages, finance won’t be taboo anymore.
Supports Career Readiness
Gaining insight into the Product Life Cycle gives students meaningful preparation for future careers in marketing, product management, and business development. Students are empowered to make data-driven risks about launching, sustaining, and retiring products. Knowledge will give students a head start in business environments that require sophistication in business strategy and market insights.
Decision-Making Skills
A critical skill not only in business but also in life, decision-making is what separates the best from the rest. Where will the product be sold? Demography of the product, what will be the price point? How will the label be designed? What should be the colour of the label? And other questions require a strict answer, which is only possible through effective decision-making.
Understand These Less Spoken Challenges About Product Life Cycle Stages
You have learnt about the importance of the Product Life Cycle, which helps you in professional as well as personal aspects. However, the pathway is not that easy! Some serious challenges can have a detrimental effect:
Understanding Abstract Stages
One of the greatest difficulties in the topic of the Product Life Cycle is recognising that the stages: introduction, growth, maturity, and decline are conceptual rather than exact. In theory, the stages seem simple, but in practice, products do not progress according to predictable stages. Some of the stages may be skipped, or a product may remain in the same stage until its eventual decline.
Predicting Transitions Between Stages
How will you immediately predict the transition from one stage to another? Doing this takes plenty of time, as results are visible when enough time has passed. When this happens, you might not be in a position of privilege to take action and save your product. Technological advancements, new competition, or a change in customer needs may blur the transition process. Therefore, it is a complicated task for many, for which you can opt for Management Assignment Help.
Finding A Marketing Balance Between Stages
Marketing, pricing, and promotional strategies vary depending on the stage of the product lifecycle. Knowing how to adapt strategies according to the stage can be complicated because different elements, such as brand loyalty, market dynamics, and pricing pressures, are often present at the same time.
Lesser Talked About Factors That Affect Product Life Cycle
The product life cycle in businesses is not a straightforward process. Some aspects affect it the most, which include:
Economic Aspects
A lot depends on the economic factors, but it is still considered the weakest contributor to the PLC stages. When the economy performs well, inflation is controlled, and people have enough disposable income, then they are likely to spend more and vice versa. On the other hand, interest rates, employment levels, and inflation are the cornerstones of this.
Advancing Technology
Technology moves quickly and decisively, which leads to innovation in some pockets and redundancy in others. New technologies can bring change by introducing new products that can make yours redundant. Thus, to be relevant and competitive, an organisation must invest in research and development. Moreover, if you need a better understanding of this, ask Assignment Writers and you will get your answer.
Change In The Taste of Consumer
Consumers hardly remain loyal to a product unless it elevates their social status (iPhone). Then, at this stage, they are likely to choose the competition. Over many years, consumer preferences will change, and they may like a product other than yours. Moreover, changing lifestyles, social media trends, cultural influences, and ethical concerns play a big role.
Competition
An obvious force is competition that affects PLC strategies. Shortening a product’s life or growth is done with the help of new products entered into the market by the competition. A product with exceptional features, good pricing, and a stronger brand image will be accepted by the masses. Hence, product innovation is the only way to protect your product.
Conclusion
The Product Life Cycle is a crucial concept for Australian students studying business who want to learn about the life stages of products from introduction to decline. The PLC framework provides a powerful way to think about the phases products progress through and the challenges, opportunities, and strategies that each phase indicates. In learning about the product life cycle stages, students gain theoretical knowledge as well as practical knowledge about how businesses modify marketing, finance, and operations, depending on the phase (or life cycle stage) in real life.
