Product life cycle is a concept that is used in product design to help understand the stages of the product from its introduction, growth, maturity and decline in the market. It is used to help determine the best time to launch a new product and when to withdraw an existing one. The concept was first introduced in 1965 by Theodore Levitt, who suggested that a product’s life cycle could be divided into four distinct stages: introduction, growth, maturity and decline.
The introduction stage of the product life cycle is when a new product is launched into the market. This stage typically involves heavy marketing and promotional activities as well as research into customer needs and wants.
During this stage, sales are usually low because consumers are still unfamiliar with the product and may be uncertain about its benefits and features. Product pricing during this stage is usually high to cover the cost of research and development.
The growth stage occurs after customers become familiar with the product. This is when sales begin to increase rapidly as more customers become aware of it and begin using it.
During this time, competition may also increase as other companies enter the market with similar products. To remain competitive, companies may need to invest in additional marketing activities or lower their prices.
The maturity stage occurs when sales reach their peak and then begin to decline due to increased competition or changing customer preferences. Companies may need to adjust their pricing strategies or introduce new products in order to remain competitive during this period. The focus during this stage should be on maintaining customer loyalty by providing quality service.
Decline Stage: The final stage of a product’s life cycle is its decline phase. This occurs when sales start declining significantly due to increased competition or changing customer preferences. Companies may need to withdraw their products from the market if they are no longer profitable or if there are no longer enough customers for them.
Conclusion: Product life cycle plays an important role in product design by helping companies understand when it’s time for them to introduce a new product or withdraw an existing one from the market. It can also provide insights into how best to price a particular product at each of its stages so that companies can remain competitive while still maximizing profits.