Explain the 5 stages in the product life cycle ?

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The first phase of the product life cycle is the development or introduction phase. The product is officially launched into the market. The marketing team does everything it can to induce customers to buy the product.

After a few months of development, the product gains popularity and enters the growth phase. Return customers refer their friends, and sales start booming.

During the growth phase, sales gradually increase every year. In the maturity phase, the business has already established itself. The management can effectively predict sales figures because they know their clientele. In this phase, sales and demand remain fairly constant.

After a while, customers grow tired of the product and move on to something else. The result is a decline in demand and overall sales.

The final stage is abandonment. When the product no longer brings value, the company stops producing it.

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The five stages in the product life cycle are product development, introduction, growth, maturity, and decline.

The product development phase is the phase in which a company has a new idea for a product. For example, a fast moving consumer goods (FMCG) company comes up with a new idea for a weight loss supplement in the form of a milkshake. During this phase, the company is not making any money, because the product is not actually on the market yet.

In the introduction phase, the new milkshake is introduced to the market, probably with a big marketing campaign. While sales of the product slowly start to pick up, the company is still not making a profit, as they are recuperating from their start-up costs.

In the growth phase, the milkshake starts to get popular. People who want to lose weight are seeing results from using this product, and the company starts to turn a significant product.

In the maturity phase, profits are still good, but are not growing as much as they were in the growth phase, because most people who are interested in this product have already been aware of it and using it since the growth phase. In other words, there are fewer new customers.

In the decline phase, sales figures start to drop and less profit is seen. There could be a number of reasons for this. It's possible that a competitor has brought in a new product that has grabbed the attention of the target market, or a perception could develop in the market that the weight loss gains gleaned from this product are temporary.

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Some explanations of the product life cycle have four stages (as in the link below), others have five.  When there are five stages, they are:

  • Introduction.  This is a stage when the product is typically being produced for local consumption and possibly exported
  • Growth.  In this stage, copies of the product are often manufactured in another country and you start to get competition based on price.
  • Maturity.  In this stage, price pressures get very strong and the good is almost never manufactured in the original country anymore.  It is now manufactured only in low-cost locations.
  • Saturation.  At this stage, there is really no more growing that can be done.  The manufacturer has to start trying to come up with new ways to use the product to increase demand for it.
  • Decline.  At this point, companies start to abandon the product and there is not much market for it at all.

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