Discuss the concept of Product Life Cycle. Elaborate the various stages by taking the example of a shaving cream brand of your choice

Discuss the concept of Product Life Cycle - The Product Life Cycle is a useful framework that describes the stages a product goes through from its initial development to its eventual decline and removal from the market. This model is widely used in marketing and product management to understand and predict the performance of products in the market. The five stages of the Product Life Cycle are:

Introduction: This is the stage when a new product is first introduced to the market. Sales are typically low during this stage as the product is still being promoted and customers are becoming aware of its existence.
Growth: In this stage, the product experiences rapid growth in sales as it becomes more widely known and accepted by customers. This is typically the most profitable stage for the product, as production costs are reduced and sales volume is high.
Maturity: This is the stage when sales growth slows down and eventually levels off. Competitors have entered the market and the product may have reached its maximum market penetration. At this point, marketing efforts may focus on maintaining market share and extending the product's life cycle.
Decline: Sales of the product start to decline, usually due to changing customer preferences, the emergence of new technology, or increased competition. The product may be removed from the market or replaced by a new product.
Removal: In this stage, the product is removed from the market and production ceases. This may be due to declining sales or the introduction of a newer and better product.

Discuss the concept of Product Life Cycle Let's take the example of a shaving cream brand, Gillette, to illustrate the different stages of the Product Life Cycle:

Introduction: When Gillette first launched its new shaving cream product, it would have experienced low sales as it was a new product in the market. The company would have focused on creating awareness about the product and its benefits.
Growth: As more people became aware of Gillette's shaving cream, sales would have grown rapidly. The company would have focused on expanding distribution, creating advertising campaigns, and promoting the product to attract new customers.
Maturity: As the market became saturated with Gillette's shaving cream and competitors entered the market, sales growth would have slowed down. The company may have introduced new scents or packaging to maintain market share.
Decline: As customer preferences change and new technology emerges, sales of Gillette's shaving cream may start to decline. The company may decide to discontinue the product or replace it with a newer, more innovative shaving cream.
Removal: If sales continue to decline, Gillette may eventually remove the shaving cream from the market and cease production.

Discuss the concept of Product Life Cycle , understanding the Product Life Cycle can help companies plan their marketing strategies and make informed decisions about their products. By anticipating the different stages of the Product Life Cycle, companies can maximize profits and extend the life of their products.

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Four Stages of Product Life Cycle

Introduction

This is the first stage of the product life cycle, Discuss the concept of Product Life Cycle starting with product ideation and continuing until the product is introduced in the market. In this stage, brands conduct marketing and promotional activities, adapt product life strategies, etc., to ensure the product reaches its target audience.

Growth

In this stage, consumers start buying the product, it becomes popular, and its sales increase. In simpler words, the customer begins recognising the brand. In this stage, brands undertake different brand retention strategies to build a loyal customer base.

Maturity

In this stage, sales slow down, indicating that the market has begun to reach saturation. With products reaching saturation, competition is higher than at another location, and profits start getting thinner by the day.

In this stage, brands look for ways to innovate their product and strategies to increase their longevity.

Decline

While companies make all efforts throughout the different stages of the product life cycle to ensure that it stays alive in the market, an eventual decline cannot be ruled out. A decline’s characteristics are a drop in sales, affected revenue, changed consumer behaviour and fluctuating demand.

Conclusion

Every product undergoes a product life cycle. Although every product’s journey differs, the PLC remains the same- introduction, growth, maturity, and decline. Whether a fresher or an experienced product manager, knowledge of PLC will help you tactfully utilise the company’s resources, predict the future, and make strategic plans for product launches, among others.

Emeritus India offers some of the best product management certification courses that provide comprehensive knowledge about PLC and equip you with advanced skills and knowledge to succeed in product management.

The product life cycle is a powerful administrative tool to understand the different phases that a product goes through. It maps a product’s journey from its launch until its discontinuation.

The tool has wide-reaching implications in marketing and sales but it can also aid in the design and decision-making process for the product.

The original product life cycle had five phases: development, growth, maturity, saturation and decline. It was developed by Raymond Vernon in 1966.

Over the years, the saturation stage was discarded and some added a different fifth stage known as the introduction stage.

But in today’s modern world, the development and introduction stages are highly interdependent as it is possible to get real-time feedback and bring effective changes in both of them.

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