The Product Life Cycle (PLC) is a concept used in marketing and product management to describe the stages a product goes through from its introduction to the market to its eventual decline
The product life cycle is typically divided into four stages:
- Introduction Stage: This is the stage where a new product is introduced to the market. At this stage, the product is usually unknown to customers and requires heavy marketing and promotion to generate awareness and demand.
- Growth Stage: Once the product gains acceptance in the market, it enters the growth stage, where sales and profits begin to increase rapidly. At this stage, competitors may enter the market, and the product may undergo improvements and modifications to stay competitive.
- Maturity Stage: As the market becomes saturated with the product, sales growth slows down, and the product enters the maturity stage. During this stage, the product may experience increased competition, and companies may engage in price competition and advertising to maintain market share.
- Decline Stage: Eventually, the product reaches the decline stage, where sales and profits start to decline. This could be due to changes in consumer preferences, technological advancements, or market saturation. At this stage, companies may choose to discontinue the product or try to revive it by introducing new features or marketing strategies.
Understanding the product life cycle can help companies make informed decisions about product development, pricing, marketing, and sales strategies at each stage of a product's life.