Have you ever wondered why some products are incredibly popular and successful up to a century– like Coco-Cola, while others (like the Typewriter) seem to fall off the radar after just a few years or decades?

Or why some products go through radical changes in their marketing, quality, and branding after launching –like Apple products (especially the Apple iPhone), while others remain consistent for years?

The answer to these questions lies in something called the " the product life cycle." Let’s take a close look at the product life cycle. Exploring what it is, why it's important, and all four stages explained in detail.

We'll also look at some real-life examples of products that have gone through each stage, as well as some of the limitations and criticisms of the product life cycle model. 

Whether you're a business owner, marketer, or just curious about how products evolve, this article will provide you with a comprehensive understanding of the product life cycle and its implications for the modern marketplace.

Also Read: Startup Branding-Tips on how to Build a Brand that Sells Itself

What is the product life cycle?

The product life cycle is a marketing model that is used to describe the stages that a product goes through from the moment it is introduced (launched) in the market to its eventual withdrawal (decline) from the market. 

Business owners use the product life cycle model to understand how their products are performing in the market. They also use it to understand what actions they should take to maximize profits in each phase.

The concept was first introduced in the 1950s by a German economist named Theodore Levitt and discussed at the Harvard Business School.

The model is a product of Levitt's observation that most products follow a similar pattern over time. They start slow, gain momentum, reach a peak, and then start to decline.

He figured that there were some kind of underlying process or cycle that governs this behavior. From this observation, Levitt eventually developed the product life cycle framework.

Since then, the product life cycle has become a popular and widely-used framework in the world of business.

Why is the product life cycle important?

The first and most glaring importance of the product life cycle is that it helps businesses understand the different stages that their product goes (or will go) through during its lifespan. 

It also  helps businesses make decisions about things like marketing, pricing, and product development during these stages. For example, during the introduction stage, a business might want to invest heavily in advertising to build awareness of the product.

While during the maturity stage, they might want to focus on rebranding to stay competitive.

Additionally, businesses can use the product life cycle to plan for the future. They can choose to invest in new product development while the old one declines.  Or improve the quality of their existing product to remain relevant in the market.

Also Read: Net Promoter Score: What it is and Why You Should Care About it

The stages of the product life cycle       

So what makes up the "stages" of the product life cycle? 

The introduction stage

We can liken this stage in a product life cycle to a baby taking its first step. When your product is first introduced to the market, It's new, and untested. Businesses are often focused on building awareness and generating interest among consumers at this stage. 

Features of the Introduction Stage include:

‍High Marketing Costs: Companies typically spend a lot of money on research and development, design, and marketing efforts to create awareness and generate interest in the product.

This includes advertising, promotions, and public relations activities to generate buzz and attract attention. For instance, Apple's first iPhone ad in 2007 featured more than about 50 people saying "Hello" to stir up the audience towards the new product.

‍Low Sales Volumes: Since the product is new, sales volumes are typically low. Your company may decide to focus on building relationships with early adopters. For example industry influencers, early customers, and reviewers. To generate positive word-of-mouth and build momentum.

‍Limited Product Availability: During the introduction stage, the product can be available in limited locations or markets. This is sometimes a strategy companies use to test their product in select markets to gauge customer interest and make adjustments based on feedback.

‍Education of Customers: Since the product is new, customers may not be familiar with its features, benefits, or uses, especially tech-based products. It is in the introduction stage that companies invest in education campaigns to help customers understand the value proposition and potential applications of the product. 

This is what the "learn more about our product" button in some adverts aims to achieve.

‍Limited Competition: Finally, in the introduction stage, there may be limited competition since the product is new and unique. 

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The Growth stage

This is the stage in the product life cycle where sales start to take off as more and more people become aware of the product and start buying it. Here, word-of-mouth spreads, and people start to take notice of your product.

Here are some key characteristics of the Growth Stage:

‍Increased Sales Volume: This is often due to a combination of marketing efforts –word-of-mouth, recommendations, and positive reviews.

‍Increased Competition: As your product gains acceptance in the market, other companies may enter the market with similar products. This often leads to price competition and a focus on product differentiation. 

‍Expansion of Distribution Channels: To keep up with demand, companies sometimes expand distribution channels here to reach more customers. This can include adding new retail locations, launching an e-commerce platform, or partnering with distributors to expand the product's reach.

‍Product Improvement: Based on feedback from customers, you may have to improve your product's quality or add new features to stay ahead of competitors and maintain customer satisfaction. This is what popular brands like Apple, Samsung, Tecno, and Oraimo, among others do to stay relevant in the market.

‍Increased Profits: The Growth Stage is typically the most profitable stage of the product life cycle. As sales volumes increase and distribution channels expand, your company generates significant revenue and profit margins.

‍Shift to Mass Marketing: You may decide to shift your marketing focus from a narrow target market to a broader mass market in the growth stage because of the wide adoption of your product. This can include more traditional forms of advertising, such as television and radio ads, as well as sponsorships and endorsements.

The Maturity stage

Just like with people, products can't keep growing forever. Eventually, they reach a point where they've hit their peak. Sales level off, the competition heats up, and the market becomes saturated. We call this the maturity stage.

Some key characteristics of the Maturity Stage are:

‍Slower Sales Growth: This is often due to some factors, such as market saturation, a decline in demand, or increased competition.

‍Intense Competition: As the market becomes more saturated, competition intensifies. Companies may focus on price competition, differentiation, or new marketing strategies to maintain market share at this stage.

‍Focus on Cost Control: To maintain profitability, companies may focus on cost control measures, such as reducing production costs or streamlining operations.

‍Niche Marketing: To differentiate your product from competitors, focusing on niche marketing, or promoting unique product features may be the best option.

‍Product Line Extension: Extending your product line to maintain relevance and attract new customers might be something to consider here also. For instance adding new product variations, flavors, or packaging options.
You might want to learn this from popular brands with intriguing successful rebranding stories like Apple, Burberry, or McDonald.

‍Increased Promotion: A re-strategize marketing can be the single push companies need in their product life cycle to maintain market share and attract new customers. What companies do here is fresh advertising, discounts, loyalty programs, or other promotional activities.

The Decline stage

Finally, the decline stage is when sales start to drop, the product starts to lose steam, and its popularity wane. Probably because newer and better versions of your product come into the market. Declines can also be caused by factors like changes in customers' demand and taste. 

However, you have to note that the methods, capabilities, and marketing techniques used by a company determine how long a product takes to develop and eventually expire -decline.

The characteristics of this stage are:

Decline in Sales: A decline in sales is always the first sign that your product has entered the decline stage. As I mentioned earlier, factors like changes in consumer preferences, increased competition, or new technology foster the decline stage of any product.

‍Decreased Profitability: As sales decline, profitability decreases due to declining revenue and fixed costs.

‍Product Withdrawal: Companies may decide to withdraw the product from the market if it is no longer profitable or if there is no viable strategy for reversing the decline.

‍Harvesting: Harvesting is the last option when you are unable to tackle your product decline. Harvesting involves reducing marketing and other expenses to maximize profits before ultimately withdrawing the product from the market.

Read Also: Early Stage Valuation: Here Are 5 Ways To Improve The Value Of Your Startup

What are the limitations of the product life cycle

You have learned that the product life cycle is a popular concept used by businesses to understand the stages that a product goes through from introduction to eventual decline.

You have learned about these stages - introduction, growth, maturity, and decline.  

And you have equally learned that each stage is associated with different characteristics and challenges, and businesses use this information to plan their marketing and sales strategies accordingly.

This shows that the product life cycle model is without a doubt of significant relevance. Particularly for companies trying to maintain relevance for their product and remain in the market for as long as possible. 

However, you have to also understand that the model is not without its cons or limitations.

Some limitations to the framework that you should keep in mind as a business owner or potential entrepreneur are

1. Firstly, the product life cycle assumes that a product will follow a predictable pattern of growth, maturity, and decline. Where in reality, this may not always be the case.

Why? Because factors such as changing consumer preferences, technological advancements, and competitive pressures can all impact a product's trajectory. Take the Typewriter and the Blackberry smartphone for example.

2. Secondly, it is impossible to forecast how long a product will take to complete each stage. It can even be occasionally challenging to tell one stage from another. Some products decline even before they reach the maturity stage, making it impossible to entirely rely on the life cycle model.

3. Thirdly, the product life cycle framework doesn't take into account the possibility of a product being reinvented or repurposed to extend its lifespan. For example, a company might introduce new features or functionality to a product to make it more appealing to consumers, even if it's technically in the decline phase of its life cycle.

4. The fourth limitation is that the product life cycle framework doesn't consider the  external factors such as economic conditions or changes in government regulations. Which can have a significant impact on a product's sales, profitability, and lifespan.

5. Furthermore, the model can be limited in its usefulness for products that have a long lifespan or are in a niche market. In these cases, the framework may not accurately reflect the product's growth stage, maturity, and eventually decline.

6. Finally, the product life cycle can be limiting in terms of poor management. Businesses may focus too heavily on extending the product's life cycle or maximizing profits during the maturity phase, without considering other factors such as product diversification, new market entry, or overall business growth.

Meaning, this product can accidentally suffer missed opportunities or fail to adapt to changing market conditions.

Examples of the product life cycle

Let’s now head over to practically applying the product life cycle to certain brands and products around us.

1. The Apple iPhone

The Introduction Stage: The introduction stage of the iPhone product life cycle was back in 2007 when Apple first introduced the iPhone to the world. This was a revolutionary new product that combined a phone, music player, and internet device all in one.

The initial iPhone model was met with a lot of excitement and buzz, and it quickly became a popular product among early adopters.

‍The Growth Stage: During the growth stage of the iPhone product life cycle, Apple improved on the initial design and released new models with better features and capabilities.

For example, the iPhone 3G introduced support for 3G cellular networks, while the iPhone 4 introduced a higher-resolution Retina display and a front-facing camera for video calls.

As Apple continued to release new models, sales of the iPhone grew rapidly, and it became one of the most popular smartphones on the market.

‍The Maturity Stage: Currently, the iPhone is in the maturity stage of its product life cycle. So far, sales growth has slowed down. Now, Apple is focusing on maintaining its market share by releasing new models with incremental updates and improvements.

For example, the iPhone 12 introduced 5G cellular support and a new A14 Bionic chip for faster performance. While the iPhone 13 introduced a more advanced camera system and longer battery life.

Apple is also emphasizing its ecosystem of services and accessories, such as Apple Music, Apple Watch, and AirPods, as a way to keep customers engaged and loyal. Which is a basic feature of the maturity stage of the product life cycle model.

‍The Decline Stage: This is when sales of the iPhone will eventually start to decline as newer and more advanced smartphones are released. However, Apple may continue to sell older iPhone models at a lower price point, for example, as a way to appeal to budget-conscious consumers or those who prefer a smaller phone size.

Apple may also continue to innovate and release new products, such as the rumored Apple car, as a way to diversify its product portfolio and stay relevant in the tech industry.

2. Coca-Cola

Introduction Stage

This household beverage brand has been around for over a century now. Its introduction stage began in 1886 when pharmacist John Pemberton invented the beverage as a medicinal tonic that could cure a variety of ailments.

The beverage was sold in drugstores and soda fountains initially. The Coca-Cola Company was formed in 1892, and the iconic Coca-Cola logo was introduced in 1893.

The Growth Stage: Soon after its introduction to the market, the brand expanded rapidly. With bottling operations starting in 1899. Coca-Cola became a popular beverage across the United States and was even sold to American soldiers during World War II.

In 1915, the iconic Coca-Cola bottle was introduced, which helped to further boost sales and brand recognition.

Maturity Stage: Coca-Cola has focused on maintaining its market share through marketing campaigns and introducing new flavors and varieties of its classic soda, such as Diet Coke, Cherry Coke, and Coke Zero.

During this stage, Coca-Cola has also expanded its product portfolio to include other beverages, such as bottled water, sports drinks, and teas. The brand has also expanded globally, with operations in over 200 countries.

‍The Decline Stage: Coca-Cola is facing some decline as consumer preferences shift towards healthier beverages and sustainability. However, the brand has responded by introducing new products, such as Coca-Cola Life.

The new product uses natural sweeteners. The brand is also investing in sustainable packaging and production methods.

Coca-Cola has a strong brand identity and has been able to adapt and innovate over the years. This suggests that it will likely continue to be a major player in the beverage industry for years to come.

3. Blackberry 

Introduction Phase:

The Blackberry Smartphone was first introduced in 1999 as a device primarily used for email communication. The device had a QWERTY keyboard and a small screen. Which allowed users to easily send and receive emails on the go.

Because of its features, Blackberry gained rapid popularity among business professionals who needed a way to stay connected while on the move.

Growth Phase:

As Blackberry gained momentum, it started to attract a wider audience. The device's messaging and internet browsing capabilities, as well as its ability to sync with email accounts, made it appealing to regular consumers as well. Soon, it became a symbol of status and sophistication, and its popularity continued to grow.

Maturity Phase:

Blackberry reached its peak during the maturity phase. It had become a household name and was widely recognized as the leading device for mobile email communication.

Blackberry's popularity was not limited to North America; the device had also become popular in Europe, Asia, and other parts of the world including Africa. But soon, it was no longer the only player in the smartphone market with the launching of the Apple iPhone in 2007.

Decline Phase:

Despite Blackberry's efforts to stay relevant, it began to lose market share to competitors like Apple's iPhone and Google's Android devices. Blackberry's operating system and user interface were seen as outdated, and the company struggled to keep up with consumer demands.

Blackberry's decline was also fueled by many factors, including the rise of social media, the popularity of scrolling through the screen, touchscreens, and the shift towards more entertainment-focused smartphones.

Today, the Blackberry Smartphone is still around, but it has become a niche device primarily used by government agencies and corporations. Blackberry has shifted its focus towards enterprise software and security, and its current line of smartphones runs on the Android operating system.

While the Blackberry may no longer be the powerhouse it once was, its impact on the smartphone industry cannot be denied.

4. The Typewriter

The typewriter had a pretty long product life cycle, starting in the mid-1800s and lasting until the late 20th century. Let me break it down into the various stages of the life cycle model.

Introduction Phase:

The typewriter was first introduced in the 1860s as a way to mechanize the process of writing. Before the typewriter, people had to write by hand or use a printing press. The typewriter was a game-changer because it allowed people to write quickly and efficiently. It was primarily used in offices and for administrative work.

Growth Phase:

As more and more people began to use typewriters, they started to become more accessible and affordable. This led to a period of growth in the typewriter industry, with new companies popping up to meet the demand.

The typewriter became a symbol of professionalism and efficiency. And it was used by everyone from secretaries to novelists.

Maturity Phase:

By the mid-20th century, the typewriter had reached its peak. It had become a ubiquitous tool in offices and homes around the world. However, it was also facing competition from new technologies like computers and word processors.

Despite this, the typewriter continued to be popular, especially in developing countries where computers were not yet widely available.

Decline Phase:

In the late 20th century, the typewriter began to decline in popularity as computers became more advanced and affordable. The rise of personal computing and word-processing software made typewriters seem obsolete.

Today, the typewriter is considered a relic of the past, and it is mostly used by collectors, historians, and enthusiasts.

While it may no longer be in use in the same way it once was, the typewriter played an important role in the history of communication and technology.

Conclusion

The product life cycle is an imperative marketing model for businesses to understand. It provides a framework for predicting the sales and profitability of a product, as well as guiding the decision-making process throughout the product's lifecycle. 

Recognizing the different stages (Introduction, Growth, Maturity and Decline) of the product life cycle can aid businesses in adjusting their marketing, pricing, and product development strategies accordingly to maximize their profits and extend the product's lifespan. 

However, it's important to note that the product life cycle model has its limitations and may not always accurately predict the trajectory of a product. Nevertheless, it remains a useful tool for businesses to manage their products and make informed decisions.

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