Product Life Cycle:
Every product, like human being, has life cycle. The Product life cycle is the amount of time from introduction of product in the market until it is removed or declined from the market. It consists of four stages namely introduction, growth, maturity and decline.
The initiation of product development starts with an idea. This idea is explored in depth to determine its feasibility. A new product is being developed or modification of an existing product takes place. Documents are prepared to summarize the general information like time for manufacture, cost estimates and other important information regarding the product. The product is being designed and planned with the help of project team consisting of members from different departments thus moving the product to development phase. In development phase, the actual engineering of the service is completed. As the project team approves the readiness, it is moved into the testing phase. Once the product is successfully tested for required performance, it is transitioned to the Life Cycle Management Process. The Life Cycle Process consists of the following four stages:-
Introduction Phase: This is the first stage in which the product is released in the market. The marketing and promotion are at a high and company spends heavy for it. The aim of company is to build demand for the product. This stage tells how the customer is responding to the product.
Growth Phase: If the product is successful in the market, its demand will increase leading to increase in its production.
Maturity Phase: In this stage, saturation is reached and the sales reach its maximum value. Cost of production and marketing decreases at this stage. The size of maturity stage depends upon the product.
Decline Phase: This is the last stage of Product life cycle. In this stage, product sales drop due to less demand for the product. It happens due to more competitive products in the market.