What Happens During The Introduction Stage Of The Product Life Cycle

stages of product life cycle

Each and everything has a process through which things move out. Likewise, a product has the life cycle through which it runs on. This cycle has four stages: introduction, growth, maturity, and the last but not the least decline phase of the life cycle.

Why is the product life cycle necessary for the Business, operations, management, etc.?

The product cycle information is essential for the owner and the CEO Of the company because it helps them predict the standings and the product’s success from the very beginning of the product launched until the fourth stage of decline.

One of the significant aspects that are also to be treated as an essential aspect of the product life cycle is that it enables the company’s CEO to get information about the price, sales, profitability, and the loss that occurred during all the stages of the life cycle.

Continue reading to learn about four stages of product life cycle:

#1 Development Phase

In the very first stage of the product life cycle is the development stage. This stage is referred to as the beginning of the product. In other words, the introduction of the product is made in the market.

                                    “LOWER SALES = HIGHER RISK”

Reason of Lower Sales And Higher Risk

The sales are lower in this stage because the people are unaware of the product, and people believe in brand images, so sales are lower at the initial step. There is a high level of risk concerning profitability.

What are the procedures that need to be performed during this stage?

Example

Car Example at the initial stage self-driving car fall at the first stage

#2 Growth Phase

The second stage of the business cycle, which is the Business expanding stage or the growth stage because, in this stage, the targeted audience has accepted the product.

“HIGHER DEMAND = HIGHT SALES AND HIGHER PROFITABILITY LEVEL”

Reason OF Higher demand + Higher Sales + Higher Profitability

The reason is straightforward, as this is the second stage of the product life cycle. All the high amount of investment is already made on Brand awareness and the improved strategies of Marketing. Therefore, in the second stage, people are very much aware of the product. It leads towards higher profitability with a boost in the sales level.

What are the procedures that need to be performed during this stage?

  • Low Pricing Strategies

Bringing in more competitive strategies so that nobody can beat the brand by adopting the same strategies

Example

Car Example, in the second stage, the electric car falls in this example.

#3 Maturity Phase

At the third stage, the product becomes mature, and all the targeted customer of the product already has the effect in their hands at the stages sales are already at the level so here there is not much growth in the sales perspective.

            “MATURITY LEVEL = STABLE SALES”

What are the procedures that need to be performed during this stage?

We are maintaining the product position in the High competition level.

Example

Car Example, at the third stage, a well-known ford car falls in this example.

#4 Decline Phase

This is the last stage of the product here at this stage, the demand for the product decreases, and all the decisions come in the owner’s hand whether he wanted to continue with the product or wanted to discard the existence of the product.

Example

Car Example at the fourth stage Diesel car falls in the last stage.

Final Thought

The final thought concerning the operational management the product life cycle has the forecasting aspect the manager forecast the product life cycle to have the idea of the product from the begging’s till the end-stage and according to act for the functions that are necessary for the product so in another work forecasting of a product is very important for the development.

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