Stages of the Product Life Cycle – Real-Life Examples from Launch to Decline

The product life cycle describes the steps a product goes through from beginning to end until it eventually disappears from the shelves. Each phase has its own characteristics and requires unique strategies to ensure success.

The product life cycle describes the steps a product goes through from beginning to end until it eventually disappears from the shelves. There are four stages of the product life cycle involving a product’s initial launch, growth, maturity, and eventual decline. Each phase has its own characteristics and requires unique strategies to ensure success. We will take a closer look at each of the four stages of the product life cycle.

Stages of the Product Life Cycle

Product Launch (Introduction)

The product life cycle begins after a product has been designed and developed (New Product Development). It then gets introduced to the market.

The introduction stage is characterized by high risk. The product cost is at its highest and often involves little to no competitors trying to steal the light. The main objective of a product’s introduction is to increase the product’s desire among consumers. This will in turn hopefully lead to popularity paving the way for the next stage: Growth.

Product Growth

When a product enters the growth stage, it begins to get more recognition on the market and is bought by more and more consumers. It is no longer only seen by early adopters but has started to hit the mass market. The idea behind the product is well accepted and the product is known by many, which is making sales climb.

With the growth of the product continuing, expansion will typically occur within the market: both the company selling the product will likely think about expanding capacity, as well as first competitors. The increase in the amount of competitors makes prices drop.
In addition, the product may also be adjusted to respond to customer feedback.

Product Maturity

As maturity is reached, the product sales growth starts to decrease and possibly cease. When this occurs it usually means that the market has become oversupplied with the product. Being oversupplied can create a competitive price war between manufacturers, which makes margins shrink as prices drop.

To grow market share, companies tend to make changes so that the product can be utilized in a different way than originally made. Thereby, new markets can be accessed to prolong the life of the product.

Product Decline

Many times a company will try to do everything to maintain product relevancy even though it has matured. However, product decline is going to happen eventually. This may be due to changes in demand structure and demographics. In many cases, however, this is driven by technological innovation making previous technology obsolete.

As a product declines, the sales also begin to decline due to the lower amount of demand for a product. This often causes an increased war among competitors fighting for pieces of a pie which decreases in size.

At some point (which may vary drastically depending on the type of product), the declining product will be removed from the market completely if it is not able to revive itself to be competitive again.

Product Life Cycle Examples

The stages of the product life cycle may differ a bit depending on the product. Let’s consider two examples that show how the stages work.

The Video Cassette Recorder (VCR)

If you grew up in the 80s, then you pretty much know what a VCR is and likely watched many movies on it. But today, you will likely not find one anywhere anymore.

This is due to the rapid technology change that tends to replace previous technology. What has been considered high-tech a long time ago is now a relic of the past. After DVDs and Blue-Ray, streaming services have made the VCR obsolete, leading to a decline in the product.

The Typewriter

Another example is the typewriter. When it was introduced in the 19th century, it quickly grew in popularity as it offered a complete innovation of the way we write. But that all changed as soon as the technology advanced and computers were introduced. With the introduction of this new technology, the overall revenue of the typewriter quickly diminished.

These stages of the product life cycle are the same for any type of product that is sold on the market. What may differ drastically, however, is how long a product stays within a certain stage. This again strongly depends on the characteristics of the product and its market.

Liked it? Subscribe for More
Continue Reading
Product line of branded bathroom products neatly arranged on a wooden shelf.

Product Line Decisions – Building a Product Line

A product line is a group of products that are closely related… Each product line requires separate product line decisions… The primary one of the product line decisions is the product line length. This means nothing else than the number of items in a product line.

Read More »

Table of Contents

Recent Posts
Case Studies

Is Lululemon Sustainable? Lululemon Sustainability Analysis

Discover Lululemon’s sustainability journey, from reducing water usage to innovating recycled materials. Explore their ambitious goals, challenges, and progress towards becoming a truly circular brand. Learn how they’re tackling environmental impact and inspiring others to do the same.

Read More »
Abstract network diagram with interconnected nodes of various colors symbolizing the strategic connections between different social media platforms
Market

Choosing the Right Social Media Platforms for Your Business

Choosing the right social media platforms for your business is crucial for success. Learn about popular platforms like Facebook, Pinterest, Instagram, X, YouTube, Reddit, LinkedIn, and TikTok, their strengths, audiences, and posting norms. Discover how to measure your social media marketing success with key performance indicators (KPIs) and refine your strategy for optimal results.

Read More »
Illustration of a woman in a yoga pose wearing stylish athleisure, representing the active and aspirational lifestyle of Lululemon's target market
Case Studies

Lululemon Target Market and Customer Base

Discover how Lululemon, a billion-dollar empire, has mastered the art of targeting high-income consumers obsessed with fitness and wellness. Learn about their specific demographics, psychographics, and marketing strategies, including community building, influencer marketing, and premium pricing. Explore how they’ve expanded their reach to include men’s wear and embraced sustainability initiatives. Get insights into their successful brand building and learn how to apply these strategies to your own business.

Read More »

Hey! Just 1 Question

What best describes your role here?

Just Two Clicks
That's quick and anonymous. We don't collect your personal data here.