What is meant by product life cycle explain its concept with example?
Answers
Product life cycle (PLC) is the cycle through which every product passes by from introduction to withdrawal or eventual decline. The PLC has four stages
1. Introduction: When the product is brought into the market.
2. Growth: In this stage, sales increase, the market knows of the products and profits start coming in.
3. Maturity: sales grow at slowing rates and finally stabilize.
4. Decline: sales start decreasing due to change in consumer tastes, product relevancy etc.
Product life cycle of a mobile phone:-
The product life cycle of a mobile phone starts with stage one, during the period of 1980's to 1990's mobile phones grew as they were considered a form of communication and attraction.
In stage two there was immense increase in sales of mobile phone as they went from being a minority user group to an essential of life.
During stage three in late 2000's mobile phones reached to even the most techno phobic elements of society and reached maturity.