It does not matter whether you are doing shopping from your parent’s old VHS tapes or your smartphones. You are taking participate in and taking different experiences of the different stages of the product life cycle. When a product manufactured then it enters into the market, the consumers don’t know that it has a life cycle. The life cycle that begins from being new and after some time it eventually retired from the circulation of the market. This process happens continually from the starting stage to the retiring stage or eventually declines at last. But here the question arises how the life cycle of product works and how companies or businesses analyzing it. So it is very important to know the product life cycle and its strategies on how it goes from one stage to another stage of its life.
There are various kinds of products in the market and each product has its own life cycle. So in the article, the assignment writer will describe to you all about the life cycle of a product and its strategies.
What Is The Product Life Cycle?
The product life cycle is the process in which the product has to go through various stages, first, the product is introduced in the market until it declines and then after getting declined, it removed from the market. From the introduction to removal, it carries out through four stages. The first stage is the introduction stage, second is growth, third is maturity and the fourth is decline. All products are removed from the market, but some stay in the market for a long time and some stay for a shorter period in the market. But every product has to eventually phase-out of the market. There are some factors behind phasing out the products from the market including saturation point, increased competition about a particular product, if the demand is decreased, and the sale of the product id dropped.
These are some factors because of which the product can phase-out of the market. Furthermore, the companies create various product life cycle strategies so that their product can sustain in the market and they try to change by creating demand, by doing promotions, by developing many new technologies in the product and many more.
Stages Of The Product Life Cycle
Generally, there are four stages of the product life cycle. It goes under four stages until it develops to its decline stages and after declining, it retires from the market.
The next step is the introduction that it needs to go into the market because there is no product that can come to the market without its introduction. If we talk about the smartphone life cycle analysis then there are various promotions and marketing going on in advance before the smartphone introduction in the market. It is not necessary that the companies get to know whether the product will make or break in the market in the introduction phase. They just rely on the product’s demand and analyses its life cycle. During this introduction phase, the promotions and marketing of the product are very high.
Mostly companies invest so much in marketing and they make the people aware of this new smartphone or product so that consumers get their hands on this brand new and latest smartphone. In this stage, the companies get an idea of how will the consumers respond to this product and they promote and market their products according to the response of the consumers. If the consumers like it then how successful will the product be? Also called a heavy spending phase for the companies because they spend so much on promoting and marketing the product. There is no guarantee of the product in this period that it will pay itself through sales or not.
Costs are very high in this stage and the competition is not that high in this stage. Companies need to make some goals in this stage that how can they increase the demand for the product, how can they reduced the competition in the market, and how can they increase the sales of the product. These are some goals that the company wants to achieve.
Growth means that the consumer is already taking the product, buying it and the demand for the product is increasing. The demand is increasing that’s why the product is becoming more popular in this stage. Almost all the companies in the market become aware of the product and the product start beginning to draw attention. It also generates very high revenue from the market. It stands out of the crowd and almost all the consumers buying it instead of the other product. If by chance, there is more competition in the market of this product then the company has to invest heavily in the advertising and marketing of the product to beat their competition out of the market.
When the product starts growing the market of the product itself stars growing. As there is a heavy demand for the product in the market and the sales touching the sky then the other competitions may reduce the prices of their products so that people can buy their product. But you need to follow some strategies to keep your sales and demand high in this period of time.
When a product reaches the maturity stage, its sales become down or it becomes a saturation point of the product in the market. In this stage, sales can also start reducing. Because of the high price, the demand is reducing, the sales are also reducing in this phase. Companies reduce their product price because there are various other and latest technology products launched in the market and that too at the same price. So no one willing to buy this product because of its price and old features of the product. For instance, if there are two companies that are selling their smartphones, one launched 6 months earlier and one launched yesterday and both are of the same prices. So yesterday one has the best features and it has the latest technology in it. So consumers will buy the latest and fancy ones.
The price is also not different so why the consumers will buy the old featured smartphone. They will use the new and latest one. So in this stage, the saturation point comes off the product and the sales volume of the product maxed out. In this stage, companies tend to innovate or maintain their product to increase their product’s demand and sales, they also introduced some new technologies in this old product just to increase its demand.
Although all companies tend to keep their product alive in the maturity stage as long as possible but declining for every product is inevitable. Each product that is introduced in the market has to decline. In this stage the sales of the product decline significantly. The behavior of the consumer may be changed in this stage as there is less demand for the product. The company loses all its shares in the market of the product and because of competition, sales deteriorate. There is no marketing or minimal marketing at this stage. The prices are also get reduced by the product in the declining stage. Eventually, the product is just retired in this stage.
The life cycle of any product always carries it from its introduction phase to the decline phase. The life cycle of all the products is the same. So if you still in confusion and doubt of any online assignment help topic then you can contact assignment writers. These writers are extremely qualified and can solve all your essay writing help problems. These are some insights about how a product’s life cycle goes from one phase to another and how it retired from the market.