The product life cycle represents the phases a product moves through from being introduced to customers to being moved off of shelves.
Understanding the product life cycle is critical for businesses who want to optimize their inventory and offer fresh options to their customers. The product life cycle includes four key phases. First, the product is introduced to customers, typically through a concerted product launch. The business typically conducts research to ensure their product will resonate with their consumer base, then they begin marketing the product to customers.
Second, the product starts to generate consumer interest and demand. In this growth phase, sales tend to increase and competitors might start offering the same product on their shelves.
Third, the product reaches its maturity on the shelf. This phase represents the product’s profitability peak. High competition, optimum consumer demand, and changing trends influence when a product reaches its maturity.
Finally, the product reaches the decline phase, where sales start to decrease. In this phase, the business might discontinue or revamp the product.