The product life cycle (PLC) is a well-documented model that explains how products move from introduction to growth, maturity, and decline. Every product goes through these stages at some point, whether it’s an app, physical product, or services. While the PLC isn’t something you can necessarily avoid as a business owner with great ideas and new products — it’s something you need to be aware of, so you can plan accordingly. Everyone has different strategies for how they want their company to operate. Some people prefer to own every aspect of their business, while others want to partner up with someone who has expertise in a specific area. But no matter what your personal preference is as an entrepreneur, everyone should understand the importance of keeping track of the PLC when launching a new product.

What is the Product Life Cycle?

The product life cycle is a model that explains how products move through a cycle of growth, maturity, and decline. Each product goes through these stages at some point. There are four key stages in the product life cycle: introduction, growth, maturity, and decline. These stages are largely influenced by demand for the product — in other words, how much people want and use the product. The life cycle begins when a product is first introduced to the market. As the product enters the market, it becomes increasingly visible and generates interest. This is the introduction stage. As the product becomes more widely used, demand increases and the product starts to generate revenue for the company. This is the growth stage. As the product reaches a certain level of saturation, it begins to decline in both usage, and revenue. This is the maturity stage. As the product continues to decline, revenue and interest will eventually wane, and the product will be phased out by the company. This is the decline stage.

The Introduction Stage

During the introduction stage, a product is first introduced to the market. In other words, it’s the stage when a product is launched and/or is first made available to the public. The introduction stage is primarily focused on marketing and gaining awareness of the product. The objective of this stage is to get people to buy the product and start using it. There are two different types of products that experience the introduction stage: disruptive and sustaining. Disruptive products are new offerings that are so much better than existing products, they cause existing products to decline and/or fail. For example, first-generation computers were disruptive to the business world and caused paper-based systems to decline. Sustaining products are offerings that are similar to existing products. For example, the iPod is a sustaining product because it’s a digital music player that’s similar to CDs and MP3s. While the former is now obsolete and no longer relevant, the latter is still popular to this day.

The Growth Stage

The growth stage is all about increasing the demand and use of a product. The objective of this stage is to make people see the product as a solution to a problem they may have. This is when you’ll see growth in terms of revenue and sales. This is one of the best stages in the PLC because it’s the point at which a business really begins making money. If you have the right strategy for your business, the growth stage can lead to exponential growth that makes your product very popular. The growth stage is a great time for businesses to expand and gain a lot of customers. If a business chooses to expand during this stage, it may need to hire more employees to handle the large volume of sales. The growth stage is also known as the"explosion" stage. This is because a product that enters the growth stage will typically experience an explosion of sales and a rapid increase in demand. The growth stage typically lasts between three and five years.

The Maturity Stage

The maturity stage is where products begin to see a decline in demand and sales due to over saturation. During this stage, the product has reached a peak in terms of demand and use, but it’s still profitable for the company. The objective of this stage is to figure out ways to maintain sales in spite of the decline that will eventually happen. Typically, this is the point at which a company will start to focus on cutting costs and reducing expenses. Because a product has been around for so long in the maturity stage, consumers may become bored with it or seek out newer products. If a company continues to make and sell the product, it will eventually fail. However, this doesn’t always have to be the case. Some businesses choose to stick with the product and maintain sales by lowering the price, investing in new product variations, or providing discounts to loyal customers. The maturity stage typically lasts between 10 and 15 years.

The Decline Stage

The decline stage is when a product is no longer considered relevant or useful, and it begins to lose popularity. A product goes through the decline stage when the demand for it has dropped and sales begin to plummet. The objective of this stage is to figure out a way to end production of the product and eventually phase it out completely. If a company decides to continue producing a product that has declined in popularity, it will lose money. The decline stage typically lasts between five and 10 years. This is why it’s important for business owners to track the product life cycle and understand where their product is in the cycle. This will help them know when it’s time to end production of the product and move onto something new.

Takeaway

The product life cycle model is a useful tool for marketers. It helps you to understand the various stages of your product, and plan accordingly. Generally, it takes around five years for a product to make it through the entire product life cycle. A good way to keep track of your product’s life cycle is to create a visual PLC chart.

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