The product life cycle stages are 4 clearly defined phases, each with its own characteristics that mean different things for business that are trying to manage the. Pdf impact of product life cycle stages on barriers to entry. Product life cycle concept notes product life cycle. The product life cycle is an important concept in marketing. The five stages in the product life cycle are product development, introduction, growth, maturity, and decline.
Most empirical studies conducted about the product life cycle concept have focus ed on how firms compete in the maturity stage see, for example, agarwal and audretsch, 2001. Different products have different properties so their life cycle also vary. Product life cycle description the full technique overview is available for free. The product life cycle stages can be used for describing how products and markets work. Product life cycle concept we have a life cycle, we are born, we grow, we mature, and finally we pass away. The product concept is proven and is becoming more. New products result from innovation and pass through a number of phases referred to as product life cycle plc. The product life cycle describes the period of time over which an item is developed, brought to market and eventually removed from the market. An explanation of the former model leads to an understanding of its perceived shortcomings, and the reason for the takeup. All of the information below is based on the product or service being genuinely new to its market could be available in other markets and based on the product or service being genuinely good and valued by the market. As such, it has considerable descriptive value when used as a systematic frame.
Origins and development of the product life cycle concept. Top management portfolio decisions project team decisions and judgments. The product life cycle has been described, analyzed, and annotated so often in the literature of marketing that it has become a given in the minds of many. Introduction of maggi 2minutes noodles its a brand of instant noodle made by nestle india ltd. This video explores the path products take through their lives introductionbirth, growth, maturity, and retirementdecline.
The theory of a product life cycle was first introduced in the 1950s to explain the expected life cycle of a typical product from design to obsolescence, a period divided into the phases of. Product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Origins and development of the product life cycle concept digital. The product life cycle theory and product line management. Every product has a life cycle and time spent at each stage differs from product to product. The goal of lifecycle design is to maximize the values of the manufacturers line of products while containing the products costs to the manufacturer, the user, and society figure 1. The product development phase is the phase in which a company has a new idea for a. Product life cycle concept limitation and implications.
Maggi the product life cycle submitted by vit b school vellore 2. Bmw has managed to use the outline of the product life cycle concept but has ingeniously used the stages to full potential. New concept generation concept feasibility assessment. Iamabsolutelyconvincedthattheproductlifecyclehas thepotentialtoplayacentral,ifnotthecentralroleinour questtodevelopasolidtheorybasedfoundationformarketing practice. The plc concept is a generalized model of the sale trend for a product. On one hand, the concept has an enduring appeal because of the intuitive logic of the product birth growth o maturity decline sequence based on a biological analogy. Nestle launched maggi for the first time in india in the year 1982. A guide to new product development product life cycle.
Similarly, products also have life cycle, from their introduction to decline they progresses through a sequence of stages. The case of mobile phones article pdf available in ieee transactions on engineering management 512. We chose to establish our headquarters in vetschau, germany, where we have a cutting edge production plant guided by the principles of sustainability. Product life cycle is defined as, the cycle through which every product goes through from introduction to withdrawal or eventual demise. Underpinnings of the plc in the attribution of life. Marketing researchers frequently use the product life cycle concept plc as an accepted element in theory building. The life of most products can be divided into five key stages. The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product. The concept is based on a simple biological analogy of stages over a products life, which is intuitively appealing, but unfortunately has limited utility in practice.
Marketers who understand the cycle concept are better able to forecast future sales and plan new marketing strategies. A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. The product life cycle plc is a generalised model of the sales trend for a product class or category over a period of time, and of related changes in competitive behavior buzzel, 1966. This life cycle is the representative fact of the existence of every. As a product moves through its life cycle, the marketing approach must be adapted. This can help firms to reassess their objectives, strategies, and different elements of a marketing program. Product life cycle describes transition of a product from its.
Product lifecycle management plm is the succession of strategies by business management as a product goes through its lifecycle. The concept is based on a simple biological analogy of stages over a product s life, which is intuitively appealing, but unfortunately has limited utility in practice. Porcelaingres is a young company, and since 2003 we have been producing slabs in very high quality porcelain stoneware, in one of the most modern manufacturing facilities in europe. The understanding of a product s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product s success or failure. The concept is truly applicable in some niches such as electronics and mobile handsets. Product life cycle is the progression of an item through the four stages of its time on the market. The product life cycle is the concept that a product goes through several stages in the course of its life. The definition of life cycle is consecutive and interlinked stages of a product or service system, from raw material acquisition or generation from natural resources to final disposal. The conditions in which a product is sold advertising, saturation changes over time and must be managed as it moves through its succession of stage. Definition the stages through which the individual products develop over a period of time is known as product life cycle.
Versions of products not listed are currently in either the invest or maintain stages in the lifecycle. Product life cycle and marketing management strategies. When used carefully, the plc concept can be a great help in developing goods marketing strategies for the different product life cycle stages. Engineers must consider performance, cost, and any environmental impact of their designs. The product life cycle has been described, analyzed, and annotated so often in the literature of marketing that it has become a given in the minds of many executives. It shows that product life cycle is not best tool to predict the sales. By the growth stage, consumers are already taking to the product and increasingly buying it.
Celebrating prezi s teacher community for teacher appreciation week. In conclusion, product life cycle is a very important concept within an organization. In order to make a product survive in the market as long as possible, it is very essential for the marketers to understand the product life cycle so as to providedesign effective marketing strategies for each phase of plc. Product life cycle concept product life cycle concept shows a framework to spot the occurrence of opportunities and threats in a product market and the industry. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. These topics are discussed in order, as they pertain to the development of the product life cycle concept. As bmw utilizes the series system classification, it not only helps present variety in appealing to more segments of potential buyers, but the classification differentiation also carries on the brand in quite literally an. Product life cycle definition what is product life cycle. Limitations of product life cycle plc product life cycle is criticized that it has no empirical support and it is not fruitful in special cases. Fashion cycles changes in consumer tastes for clothing can be identified throughout the last. Product life cycle product life cycle is a normative and descriptive model for the life of products in general the plcs importance to marketing decision makers is to help identify appropriate strategies. Life cycle management and retire markets and segments technologies. The product life cycle plc concept is a wellknown marketing strategy and planning tool.
Product life cycle shivani bhambri1 abstract product life cycle plc is the cycle through which every product goes through from introduction to withdrawal or eventual demise. Products require different marketing, financial, manufacturing, purchasing, and human resources strategies in each life cycle stages. In this stage, theres heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Finally, this manuscript analyzes the validity and usefulness of the plc. The theory suggests that early in a products lifecycle all the parts and labor associated with that product come from the area where it was invented. It is clear that the use of the model has a significant impact on the success of the business. Pdf the product life cycle theory and product line. A study on the product life cycle of samsung smartphones. In business terms, the product lifecycle, in a marketing context, is all the stages of a products life span that are related to its promotion and sales. Sunset product version end of life date lead discovery 7. Product lifecycle concept is an effective control tool in case of those firms which have multi product base.
Such a firm when it offers simultaneously number of products in a market, it is but natural that all products so offered may have same degree of success. The major stages of the product life cycle are introduction, growth, maturity, and decline. The above diagram depicts a typical product life cycle. Forothers, it maystimulatethought yetothers,whoareveryfamiliarwith the conceptmayfindcertain. The product life cycle concept is derived from the fact that a given products volume and revenue follow a typical pattern of four phases cycle. Product life cycle stages managing the product life cycle.
988 1188 903 1484 139 1319 1135 327 1132 1343 575 1624 479 963 628 184 23 945 1632 724 950 330 1379 485 760 1231 951 1109 935 1392 975 9 1243 1297 399 1113