What is the product life cycle?

The life cycle of a product is, in fact, the journey that each of these elements introduced into the market must inevitably undertake, from its inception to its decline.

The Life Stages of a Product

According to marketing principles, there are four (plus one) life stages of a product:

• Development and introduction: these are the initial phases of a product. In the development phase, we are in the midst of creation and creativity activities: from the conception of the concept to the mockup, from creating a logo to possibly packaging. We are indeed in the creative period of the product. The introduction phase, on the other hand, is crucial for the product's entry into the market. After careful analysis, it is launched into a specific market. The costs of promotion (and production) are high. It is necessary to make the product known and changes (both commercial and structural) are frequent. The risk of failure is very high and fortunately, the introduction phase is quite short (except for certain types of products which we will analyze later). The price can be high (if following a market skimming strategy) or very low (if an aggressive penetration strategy is adopted).
• Growth: the growth phase sees an increase in market share (this is where the break even point is reached, the balance between costs and revenues). Promotion remains strong but more scalable during this time (using fewer resources to achieve better objectives). In this phase, sales start to come in and efforts are made to differentiate from competitors. Here it's important to defend against increasingly fierce competitors (this step is also referred to as...)
competitive turbulence). Experimenting with new distribution channels is also part of this phase, involving alliances between brands and the consolidation of the brand in the market.
• Maturity: at this stage, the product reaches a peak in sales which, however, begin to slow down shortly thereafter. Market saturation is approaching and prices start (inevitably) to fall. Complementary products are being created and new market niches are explored.
• Decline: this is the final stage of the product: here the price is at its historical lowest and promotions are commonplace. Efforts are made, in every way possible, to sell as much of the product as possible. Market saturation is now complete and the product no longer performs as before. In some cases, an attempt is made to reposition it but unless the product is completely changed, it will be difficult for it to resurface. There are two alternatives at this step: the harvesting of the product (the product will no longer be marketed) or revitalization, the attempt to prolong the life of the product, which, however, faces uncertainties that are difficult to interpret and predict. The extreme attempts to avoid harvesting are, as mentioned, repositioning and also restyling.

Difference between product lifecycle and project lifecycle

The two concepts are often confused but, in reality, the product is a marketing element that develops over long periods (even "fashionable" products last months), while a project has a shorter time span. Moreover, the lifecycle of a project is limited in time and well-defined unlike that of a product. Within the product lifecycle, there can be several projects present.

Types of products that influence the life cycle phases

There are particular products that have a different lifespan compared to others:

• Seasonal products: they have an inconsistent trend, with peaks in sales which then drop off and restart at certain times (an example is the swimsuit).
• "Flash in the pan" products: these will have a sudden trend with a very rapid introduction phase and an equally fast decline. However, within a very short period, the maturity and growth phase will lead to high sales, which quickly drop off in a short time (an example is represented by finger spinners).
• Long learning curve products: these products will have a slow introduction and development compared to others, due to reasons related to technology or cultural resistance (new tracking technologies that clash with user privacy are an example).
• The fiasco products: whose sales will be low even in the development and maturity phases, the classic over-hyped product that, however, will not sell as much as desired.

Thus, the product life cycle is a fundamental element for an accurate market analysis and understanding of the product's characteristics. Ultimately, however, the life cycle of a product is based on the number of sales of this item.