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

The product life cycle refers to a product's timeline in the market. It begins when a product is introduced to consumers and ends when the brand removes it from shelves. Marketing professionals use the product lifecycle framework to guide price adjustments or package design decision-making. 

Product lifecycle stages

A product lifecycle can vary slightly depending on the industry; however, four general stages remain constant: introduction, growth, maturity, and decline. Understanding these stages can help guide marketing strategies and optimise the product’s time at each stage. 

1. Introduction stage

The introduction stage is when a new product launches in the market. Advertising costs will typically be highest during product introductions. During the introduction stage, the business strategy and marketing goal is product exposure (making consumers aware of your product.) You may need to educate consumers on the benefits and uses of your product.

2. Growth stage

A successful product will then move to the market growth stage. During this phase of the product life cycle, profit margins are likely to increase, and 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.

3. Maturity stage

The maturity stage is often the most profitable period during the product life cycle. 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 consumer base you have yet to target. You may also consider ways to innovate your product to distinguish it from the competition. The primary goal during this phase should be to stabilise sales.  

4. Decline stage

The loss of market share marks the decline phase and a decrease in product sales, 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 favour 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 life cycle. At this point, many companies stop promoting their product and focus on maximising profits during their 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, sleep monitoring, and activity tracking. The company invests in advertising and marketing to educate consumers on how this device can enhance their fitness efforts.

Growth: As competing brands enter the market, the fitness tracking device gains popularity, and sales increase. The company refines its marketing and adds new features, such as 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 niche markets.

Decline: Sales decline as consumers begin installing fitness apps on their smartphones instead of using standalone devices. The company offers discounts and begins phasing out the fitness tracker device 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. Implementing it can help reduce costs, increase efficiency, guide marketing campaigns, and improve collaboration.

Product lifecycle management solutions

Coordinating the many different departments involved in a product lifecycle can be challenging. For this reason, many organisations 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. 

10 popular product lifecycle management tools

PLM tools and software help companies manage everything from the pre-lifecycle product development process to the market maturity stage. The following list offers 10 options to consider:

1. SAP PLM

This is a web-based solution designed for the manufacturing industry. It integrates aspects of lifecycle management with business operations, which aims to increase 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 organisation.

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 on innovation projects while securely managing their data in one central location.

4. Bamboo Rose

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

5. Aras PLM

This enterprise-level open-source software platform 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. Upchain

Upchain is a cloud-based product lifecycle management solution that enables manufacturers to collaborate with customers and supply chain partners. The tool includes engineering change control and quality control features.

7. Andromeda PLM by NGC

NGC offers a complete end-to-end solution for all aspects of product development. The solution caters 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 open-ended design integrates with other platforms and includes data and security compliance for a robust end-to-end solution for managing the entire product lifecycle.

9. Propel 

Propel PLM helps companies in the manufacturing industry manage their products throughout the entire product lifecycle, from design to production to distribution and customer service. It offers an enhanced ability to communicate and collaborate across your organisation for improved product launches 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. It also provides real-time, interactive product roadmaps and tools to enhance collaboration.

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 business. Check out the following steps to help you start using PLM: 

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 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. Then, in response to customer feedback, refine it continually.

Tip:

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

Learn more about managing a product's lifecycle on Coursera.

From the introduction phase, when you strive to establish brand identity and recognition amongst consumers, to the decline stage, when you begin reducing prices to increase sales and consider how your company will stop offering the product, the product lifecycle is a critical tool to guide your marketing approach. Understanding PLM can help guide your organisation as it aims to meet consumers’ needs, improve quality, and ultimately maximise available opportunities.

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