What Is Product Lifecycle? 4 Stages + How to Manage Them

Product lifecycle refers to the timeline of a product's relevancy in the market. It begins at the time a product is introduced to consumers. It ends when the product is removed from shelves. Marketing professionals use the product lifecycle framework to guide decision-making processes regarding price adjustments or package design. 

Product lifecycle stages

Product lifecycle can vary slightly depending on the industry in question. However, four general stages remain constant:

1. Introduction stage

The introduction stage is the time when a new product launches in the market. Advertising costs will typically be highest during product introductions, as you promote the product on different marketing channels. The business strategy and marketing goal during the introduction stage is product exposure (making consumers aware of your product). You may need to educate consumers on the benefits and uses of your product at this stage. You can do this through product demos, product trials, presentations by sales reps, informational content on social media, or paid ads.

2. Growth stage

A successful product will then move to the market growth stage. During this phase of the product lifecycle, your profit margins are likely to increase. Production may need to expand to accommodate growing consumer demand. Key indicators of the growth stage include increased product recognition, competition, and sales. Depending on consumer feedback, a company may refine its product during this phase to increase competitiveness, strengthen its brand image, or ensure sustainable margins with price adjustments.

Read more: Competitive Product: Definition + How to Analyze One

3. Maturity stage

The maturity stage is often the most profitable period of time during the product lifecycle. Production and marketing costs typically decline, although competition will be at its highest. During this phase, it's essential to evaluate your product to identify strengths and weaknesses. For example, your marketing strategies may shift to cater to a niche market you have yet to target. Or, you may begin to analyze competition more closely, in order to innovate your product in strategic ways. The primary goal during this phase should be to stabilize sales.  

4. Decline stage

The decline phase is marked by the loss of market share. Product sales decrease, typically alongside marketing efforts. Causes of this stage may include market saturation (like competition that is easier to obtain or less expensive) or innovation that renders the product obsolete. A company may decide to phase out its product in favor of a newer product version or technology. Or, it may completely overhaul the current product design and attempt to re-enter it into the product lifecycle. At this point, many companies stop promoting their product and focus on maximizing profits during its last days on the market.

Product lifecycle example

Let's consider an example of how a specific type of product, such as a fitness tracking device, advances through these stages:

Introduction: A company introduces a fitness tracking device that has advanced features like heart rate monitoring, GPS tracking, a sleep monitor, and activity tracking. The company invests in advertising and marketing to educate consumers on how this device can enhance their fitness efforts.

Growth: The fitness tracking device gains popularity and sales increase, as competing brands enter the market. The company refines it marketing and adds new a new feature, fitness milestones and achievements, to engage consumers and remain competitive.

Maturity: Several brands now offer similar devices and the company's sales plateau. Companies in this market begin differentiating their products to cater to specific niche markets.

Decline: As consumers begin installing fitness apps on their smartphones instead of using standalone devices, sales decline. The company offers discounts and begins phasing out the fitness tracker device, in order to develop new products.

AI product management

The AI product development life cycle can differ from the standard. Building AI skills can be an excellent way to set yourself apart from other candidates and stay current with the evolving tech landscape. With IBM's AI Product Manager Professional Certificate, you can learn to apply your leadership skills to the AI product management lifecycle. You'll examine real-world case studies of successful AI integration and develop or strengthen your knowledge of Agile concepts and methodologies. By the end, you'll have earned a Professional Certificate from an industry leader in technology.

What is product lifecycle management?

As the name suggests, product lifecycle management (PLM) is the management of a product as it moves through the four stages mentioned above. It involves marketing, development, manufacturing, design, and pricing. PLM supports products in unique ways that correspond to their current lifecycle phase. It is used to reduce costs, increase efficiency, guide marketing campaigns, and improve collaboration.

Product lifecycle management solutions

Coordinating the different teams involved in a product lifecycle can be challenging. For this reason, many organizations use product lifecycle management software and tools. Companies often hire product lifecycle managers (or product lifecycle management teams) to employ these tools and oversee PLM processes. PLM professionals play a critical role in a product's lifecycle. 

Read more: What is PLM? Product Lifecycle Management Career Guide

10 popular product lifecycle management tools

PLM tools and software are designed to help companies manage everything from the pre-lifecycle product development process to the market maturity stage and beyond. Here are a few common examples:

1. SAP PLM

This is a web-based solution designed for the manufacturing industry. It integrates aspects of lifecycle management with business operations which aim to result in increased efficiency and profitability.

2. Siemens Teamcenter

This web-based solution integrates engineering with manufacturing, IT, and business processes. It is ideal for large enterprises looking to improve efficiency across their entire organization.

3. Oracle Agile

This solution is built on the Oracle database and provides a comprehensive PLM platform to support manufacturers’ current and future needs in today's economy. It also offers an integrated collaboration environment where teams can work together on innovation projects while managing their data securely in one central location.

4. Bamboo Rose

Bamboo Rose is a digital platform that connects brands, retailers, and suppliers to automate the product lifecycle. The company’s tools facilitate collaboration on 3D design, sampling, and production.

5. Aras PLM

This is an enterprise open-source software platform that allows manufacturers to manage their product lifecycle. The company provides data management, simulation and analysis, technical documentation, quality management, and other capabilities in a unified system.

6. Fusion 360 Manage with Upchain

Fusion 360 Manage with Upchain is a cloud-based solution that enables product development, computer assisted design (CAD), collaboration, tailored workflows, and streamlined data.

7. Andromeda PLM by NGC

NGC offers a complete end-to-end solution for all aspects of product development. The solution was developed to cater to the fashion and footwear industries. The company’s product data management solutions include a PLM system from its Andromeda suite.

8. Centric PLM

Centric is a popular PLM solution for retail, footwear, apparel, and consumer goods industries. Its primary offering is Centric 8 PLM, which provides an end-to-end solution for managing the entire product lifecycle.

9. Propel 

Propel PLM helps companies in the manufacturing industry to manage their products throughout the entire product lifecycle, from design to production to distribution and customer service.

10. Productboard

Productboard is a cloud-based end-to-end platform that offers marketing tools such as customer feedback analysis, product positioning, and pricing research.

How to use PLM for business development

PLM strategies and approaches can be valuable assets in your career, whether you want to become a product lifecycle manager or use PLM to develop products for your own business. Here are some steps to take to get started:

1. Identify product development needs.

Determine a target market for the product you want to develop and introduce. What are consumer pain points that this product can address? What are the product's specifications that you'll need to define before developing?

2. Implement PLM tools.

Explore PLM software solutions like the ones we listed above and choose one that will best help you manage data and workflows.

3. Assemble a team.

Recruit team members who each have expertise in different areas of product lifecycle management, including design, engineering, marketing, and sales.

4. Implement a PLM process.

Following the product lifecycle, develop and introduce your product to the market. Refine it on a continual basis in response to customer feedback.

Tip:

Stay up-to-date on new developments in product lifecycle management, including tools, software, and strategy. Adapt your implementation as your product evolve or the market changes.

Learn more with Coursera

Taking online courses can be a great way to build skills related to product lifecycle, as well as discover career opportunities. Master the fundamentals of project management in each phase of the lifecycle with Google's Project Management Professional Certificate.