Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales


Product life Cycle

The product liIe cycle theory is used to comprehend and analyze various maturity stages
oI products and industries. Product innovation and diIIusion inIluence long-term
patterns oI international trade.
This term product liIe cycle was used Ior the Iirst time in 1965, by Theodore Levitt in
an Harvard Business Review article: "Exploit the Product LiIe Cycle".

Anything that satisIies a consumer's need is called a 'product'. It may be a tangible
product (clothes, crockery, cars, house, and gadgets) or an intangible service (banking,
health care, hotel service, airline service). Irrespective oI the kind oI product, all
products introduced into the market undergo a common liIe cycle. To understand what
this product liIe cycle theory is all about, let us have a quick look at its deIinition.

Product liIe cycle (PLC) has to do with the liIe oI a product in the market with respect
to business/commercial costs and sales measures. To say that a product has a liIe cycle
is to assert Iour things:
That products have a limited liIe,
Product sales pass through distinct stages, each posing diIIerent challenges,
opportunities, and problems to the seller,
ProIits rise and Iall at diIIerent stages oI product liIe cycle, and
Products require diIIerent marketing, Iinancial, manuIacturing, purchasing, and
human resource strategies in each liIe cycle stage.


Product Life Cycle Definition

A product liIe cycle reIers to the time period between the launch oI a product into the
market till it is Iinally withdrawn. In a nut shell, product liIe cycle or PLC is an odyssey
Irom new and innovative to old and outdated! This cycle is split into Iour diIIerent
stages which encompass the product's journey Irom its entry to exit Irom the market.

Product Life Cycle Stages

This cycle is based on the all Iamiliar biological liIe cycle, wherein a seed is planted
(introduction stage), germinates (growth stage), sends out roots in the ground and shoots
with branches and leaves against gravity, thereby maturing into an adult (maturity
stage). As the plant lives its liIe and nears old age, it shrivels up, shrinks and dies out
(decline stage). Similarly, a product also has a liIe cycle oI its own. A product's entry or
launching phase into the market corresponds to the introduction stage. As the product
gains popularity and wins the trust oI consumers it begins to grow. Further, with
increasing sales, the product captures enough market share and gets stable in the market.
This is called the maturity stage. However, aIter some time, the product gets
overpowered by latest technological developments and entry oI superior competitors in
the market. Soon the product becomes obsolete and needs to be withdrawn Irom the
market. This is the decline phase. This was the crux oI a product liIe cycle theory and
the graph oI a product's liIe cycle looks like a bell-shaped curve. Let us delve more into
this management theory.

Introduction Stage

AIter conducting thorough market research, the company develops its product. Once the
product is ready, a test market is carried out to check the viability oI the product in the
actual market, beIore it can set Ioot into the mass market. Results oI the test market are
used to make correction iI any and then launched into the market with various
promotional strategies. Since the product has just been introduced, growth observed is
very slight, market size is small and marketing cost are steep (promotional cost, costs oI
setting up distribution channels). Thus, introduction stage is an awareness creating stage
and is not associated with proIits! However, strict vigilance is required to ensure that the
product enters the growth stage. IdentiIying hindering Iactors and nipping them oII at
the bud stage is crucial Ior the product's Iuture. II corrections cannot be made or are
impractical, the marketer withdraws the product Irom the market. Read more on types
oI market research.

Growth Stage

Once the introductory stage goes as per expected, the initial spark has been set,
however, the Iire has to be kindled by proper care. The marketer has managed to gain
consumers attention and now works on increasing their product's market share. As
output increases, an economy oI scale is seen and better prices come about, conducing
to proIits in this stage. The marketer maintains the quality and Ieatures oI the product
(may add additional Ieatures) and seek brand building. The aim here is to coax
consumers to preIer and choose this product rather than those sold by competitors. As
sales increase distribution channels are added and the product is marketed to a broader
audience. Thus, rapid sales and proIits are characteristics oI this stage. Read more on
marketing tools.


Maturity Stage

This stage views the most competition as diIIerent companies struggle to maintain their
respective market shares. The cliche 'survival oI the Iittest' is applicable here.
Companies are busy monitoring product's value by the consumers and its sales
generation. Most oI the proIits are made in this stage and research costs are minimum.
Any research conducted will be conIined to product enhancement and improvement
alone. Since consumers are aware oI the product, promotional and advertising costs will
also be lower. In the midst oI stiII competition, companies may even reduce their prices
in response to the tough times. The maturity stage is the stabilizing stage, wherein sales
are high, but their pace is slow, however, brand loyalty develops imparting proIits. Read
more on marketing plans.

Decline Stage

AIter a period oI stable growth, the revenue generated Irom sales oI the product starts
dipping due to market saturation, stiII competition and latest technological
developments. The consumer loses interest in this product and begins to seek other
options. This stage is characterized by shrinking market share, dwindling product
popularity and plummeting proIits. This stage is a very delicate stage and needs to be
handled wisely. The type oI response contributes to the Iuture oI the product. The
company needs to take special eIIorts to raise the product's popularity in the market
once again, by reducing cost oI the product, tapping new markets or withdrawing the
product.


The Iour main stages oI a product's liIe cycle and the accompanying characteristics are:
Stage Characteristics
1. Market
introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition
4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies oI scale
2. sales volume increases signiIicantly
3. proIitability begins to rise
4. public awareness increases
5. competition begins to increase with a Iew new players in
establishing market
6. increased competition leads to price decreases
3. Maturity stage
1. costs are lowered as a result oI production volumes
increasing and experience curve eIIects
2. sales volume peaks and market saturation is reached
3. increase in competitors entering the market
4. prices tend to drop due to the proliIeration oI competing
products
5. brand diIIerentiation and Ieature diversiIication is
emphasized to maintain or increase market share
6. Industrial proIits go down
4. Saturation and
decline stage
1. costs become counter-optimal
2. sales volume decline or stabilize
3. prices, proIitability diminish
4. proIit becomes more a challenge oI
production/distribution eIIiciency than increased sales