Product life cycle (PLC) is the cycle through which every product goes through from introduction to withdrawal or eventual demise. PLC have several stages:
The introduction stage of the product life cycle is when the marketing team emphasizes promotion and the product’s initial distribution. Often the product will have little or no competitors at this point. Nonetheless, sales may remain low because it takes time for the market to accept the new product. At this stage of the life cycle, the company usually loses money on the product.
In the growth stage of the product life cycle, the market has accepted the product and sales begin to increase. The company may want to make improvements to the product to stay competitive. At this point, there are still relatively few competitors.
In the maturity stage of the product life cycle, sales will reach their peak. Other competitors enter the market with alternative solutions, making competition in the market fierce. The company that introduced the new product may begin to find it difficult to compete in the market.
In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point. Most products are phased out of the market at this point due to the decrease in sales and because of competitive pressure. The market will see the product as old and no longer in demand.
Extending the product life cycle:
- Advertising: Its purpose is to get additional audience and potential customers.
- Exploring and expanding to new markets
- Price reduction: Many customers are attracted by price cuts and discount tags.
- Adding new features: Adding value to the product catches the attention of many buyers.
- Packaging: New, attractive, useful or Eco-friendly packaging influence the target customers.
- Changing customer consumption habits: Promoting new trends of consumption can increase the number of customers.
- Special promotions: Raising interest by offering Jackpot and other offers.