That doesn't mean everything stops selling eventually — Coca-Cola isn't going away any time soon, for example — but it's applicable to most products. That rise and fall is usually referred to as the product lifecycle, and knowing where your product fits into that cycle can help you make intelligent decisions about your business's future. The Introduction Phase This is the exciting, high-stakes phase of a product's life.
And just like us, these products have a life cycle.
Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched. Because most companies understand the different product life cycle stages, and that the products they sell all have a limited lifespan, the majority of them will invest heavily in new product development in order to make sure that their businesses continue to grow.
Product Life Cycle Stages Explained The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Introduction Stage — This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing.
Growth Stage — The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase.
This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.
Maturity Stage — During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake.
They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
This shrinkage could be due to the market becoming saturated i. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets. Here is the example of watching recorded television and the various stages of each method: However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.Product Life Cycle of Nokia Essay Kapil Kumar A01 Regd Id The product life cycle The most effective way to reduce the impact on the environment is to integrate environmental considerations into the product development process.
The Stages Of Product Life Cycle Marketing Essay. Print Reference this. Disclaimer: The product life-cycle concept indicates as to what can be expected in the market for a new product at various stages.
i.e., introduction, growth, maturity and decline. Thus, the concept of product life-cycle can be used as a forecasting tool.
It can alert. Nokia understands the importance of product life cycle and has evolved from a basic voice phone to the present high-end multimedia phone. Below is a brief highlight on Nokia's mobile products over these years (extracted from schwenkreis.com).
A Study on the Product Life Cycle of Samsung Smartphone‘s in India HTC and Nokia have tried their best in competing in this product life cycle stages, and that the products they sell.
To analyse secondary data of product life cycle and business innovation strategy of Nokia Corporation.
To collect primary data by conducting interview. To evaluate the findings of the research conducted to identify the key functions of product life cycle and innovation strategy. Mobile phones look to have the classic product life cycle of introduction, growth and maturity. Introduction A long slow period of introduction from to