The Four Stages of Product Life Cycle Management

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A product is just the tip of the iceberg when it comes to the production cycle. A product actually goes through a life cycle like a butterfly. This cycle defines how the products come to be, how it develops and matures and consequently passes. This cycle can be applied to almost all products that have ever been created and can be separated into 4 major product life cycle. In some cases, newer models or versions could extend a product’s life cycle and keep them alive for longer. Eventually, however newer technology and human evolution itself can cause newer products to replace older ones with better and improved features.

Getting to know the life cycle is important as it gives a better understanding of the product itself. Hence Maxybyte has launched three different products that can give insights on how to better take advantage of its features and plan targeted sales as well. Depending on the stage of development a product can be marketed effectively and give the maker the best possible results for their efforts. It can also prepare them for the eventualities of the future. Let us now take a look at the four stages in detail.

Introduction

Once the product’s manufacturing is complete, it officially begins its life cycle. Once it enters the market it gets ‘introduced’ to users for the first time. At this point, the product acquires a name for itself very slowly. It is generally familiarized only through advertising rather than reviews or usage. Therefore the growth at this stage is generally rather slow. Depending on how useful it is and the needs of the user it addresses, its popularity may grow. The demand for the commodity may be created through previous marketing and advertising strategies but otherwise, it is only the existing brand value that could drive demand. At this stage, one may need to direct their marketing strategies towards convincing vendors and retailers to actually place these products on sale as part of the other merchandise on the market. One may also try to study market niches, gaps between user needs and existing products and thus decide on a suitable distribution channel for the product.

This stage can burden the producer with higher costs due to testing, distributions and the marketing efforts taken. This may, however, pay off if it boosts the product’s sales and creates sufficient demand. To do so, one may also have to give away additional benefits during this stage such as:

  • Introductory prices,
  • Discounts
  • Free samples
  • Offers of exchange on older products
  • Freebies, etc.

If the product brings a new or unique approach to combating user needs, it is likely that the product may be seen as one of a kind and faces no competition. It is this image that every producer works to create at this stage. Let us take for example the introduction of computers for personal use. The idea was new at the time and the market was largely monopolized by a couple of players for quite a while until other companies entered the fray. By creating the right image, the path is laid for the product to face success as it matures and bring in the best possible profit before it expires.

Are you at introduction stage? Why should you use byteEngineering?

byteENGINEERING allows you to create a project management system for engineering that monitors various elements of the process. The ERP, CAD and other engineering design projects require constant monitoring and evaluation. The byteENGINEERING gives various insights and analytics that help the team to utilize the full potential resources for developing the product. This will massively reduce the design cycle time for product development

Growth

This is a continuous process that begins almost as soon as the introduction is complete. This is the second stage of the product life cycle. Once the product has reached some of the population, through word of mouth or user reviews, the brand image starts spreading. The market responds to this spreading image and could take a turn for the better or worse. Hence it is necessary that this stage is dealt with care. Any drawbacks or errors need to be fixed immediately before it could be highlighted by competitors. If the advantages outweigh the drawbacks of the products, it becomes a success. The users share the benefits of the products with others leading to self-advertisement and create a larger demand for the product. Distributors begin stocking products more and more as the demand rises. If all goes well, profits begin to rise in this stage.

The initial profits must be invested again in strengthening the marketing efforts at this stage. At this stage, the increasing popularity may give rise to competitors who come up with similar or even better products. Due to this very reason, any mistakes or drawbacks will be highlighted by their campaign and must be combated by your own. To further your own sales, you may do additional activities such as:

  • Contests or giveaways
  • Secondary or supporting products
  • Support services etc.

This is the stage where a producer must always be wary of bad publicity or false propaganda. Setting in place an effective and strong secondary marketing plan can help you get the best outcomes.

Are you worried about Maturity stage? Here is why you need to check on byteOPERATIONS

byteOperation has been proven to work with the production efficiency rate of 32% higher than the normal. They have brilliant assistant dashboard that help you track the performance of the equipments and the machines. The fault in the system will be notified and you can access the system from anywhere. To make the operations smoother and function efficiently this is a great step. byteOPERATIONS help the production system to work without any interruption.

Maturity

This is the best stage in terms of profits and returns for any product. Having successfully crossed the introduction and growth face, your product has seen success in terms of brand name and value. Maturity is the third stage in the life cycle of your product. Demand reaches a peak and this is maintained for a particular time period where most sales take place. Competitors must have introduced their own contestants in the market race by this stage. Hence the focus of the business at this stage is to maintain the same sales level and demand for as long as possible. Having reached a peak, growth may not be possible unless you wish to put an upgrade of the same product into the market. In order to maintain the level you have this point, you may add newer features to the same product or alter the existing ones and advertise these new changes. The differences that your product has when compared to others is what gives you the edge when making a sale. All marketing efforts must be made to focus on these and these differences must effectively accompany your brand name. You may also offer lower pricing or incentives with your products to further the desire to purchase it. During this phase, your sales level stabilizes giving you a steady income or profit.

Are you trying to fill the gap between customers and production units? byteSERVICE  is the right choice to make!

byteSERVICE is an aftermarketing services that has control over all the components after it reaches the buyers. With our SaaS product we have development intelligent service the products are constantly monitored and diagnosed for different purposes.  There is 24/7 support available from byteSERVICE  who help in assisting multi-channel application with remote access.

Decline

As with the case of any existence, your product too will eventually face decline and you must be prepared to face this eventuality. Decline if the fourth and last stage of the product life cycle. At this stage, you are faced with the decision to either make changes to the existing product and keep it on the market or take it down and start fresh with a completely new range. This decision can be taken by taking into account your company’s present levels of expertise, areas of consumer needs, existing gaps in the market that need to be bridged or even your financial stand.

ByteFactory is the one stop solution

The various choices and decisions that you make at each stage of the product life cycle are crucial to the success or failure of your product in the market. At each stage, care must be taken to make these decisions with all forthcoming stages and existing plan of action in mind. Like pieces in a jigsaw puzzle, each small decision at any one of these stages can contribute to the bigger picture and ultimately to your company’s image among customers or clients.

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