Product Life Cycle

The Product Life Cycle (PLC) is a Marketing concept that describes the stages a product goes through from its introduction to its decline in the market. The PLC consists of four primary stages: Introduction, Growth, Maturity, and Decline.

Stages

• Introduction: The product is launched, and Marketing efforts are focused on creating awareness. Sales are typically low, and costs are high.
• Growth: Sales begin to increase rapidly as the product gains acceptance. Profits rise, and competitors may enter the market.
• Maturity: Sales peak and begin to plateau. The market becomes saturated, and competition intensifies, leading to potential price reductions.
• Decline: Sales and profits decline as consumer preferences shift or newer products emerge. Companies may discontinue the product or innovate to revitalize it.

Examples

• Smartphones: Introduction with basic features, rapid growth as smartphones gained popularity, maturity as most consumers own one, and decline as market saturation occurs and innovation slows.
• DVD Players: Introduced in the late 1990s, grew in popularity, reached maturity as streaming services took over, and are now in decline.

Cases

• Apple IPOd: Launched in 2001, it saw rapid growth in the mid-2000s, reached maturity with widespread adoption, and ultimately declined with the rise of smartphones.
• Personal Computers: Introduced in the late 1970s, experienced explosive growth in the 1980s and 1990s, matured as they became common in households, and now face decline due to mobile devices.