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product life cycle also known as plc so whenever a company is introducing a new product into the market it is crucial to conduct a thorough research about it and be aware of its competitors who are selling the same device and we as a company should be aware of the product life cycle stages and strategies that we need to take at different stages of product life cycle so in this video going to look at what is product life cycle and what are different stages of life cycle and in the end we'll see some examples as well so please watch this video till the end forget to like comment and share with all your friends as well in case if you're visiting my channel for the first time don't forget to subscribe as well and do hit that bell icon as well for all the notifications from digital learning on my upcoming next videos hello and welcome back to yet another video series from digital e-learning i hope you will like this video what is plc or the product life cycle so the product life cycle it was first introduced or developed by raymond verman in 1966 and a still widely used model in economics and marketing ing to him each product has a certain life cycle that begins with its development and ends with the stick line product life cycle is a process that product goes through when it is first introduced into the market until it declines or is removed from the market determining or predicting a product life cycle is extremely difficult nobody can accurately foretell how the customer taste or preference might change in 5 or 10 years time every company wants each product to have a long commercial life in other words they want the product life cycle to be as long as possible product life cycle is a time when the product is in market through its different stages which are we start with introduction then we have the growth then we have the maturity and finally we have the decline company determined that each stage affects the product profit business executives try to maximize the product value through each stage the length of product life cycle stages varies for different product one stage may last one week while the other stage may even last even decades this will help in may taking the sound marketing decisions and different stages of product life cycle so the first phase in product life cycle is the introduction phase so in this phase once the product has been developed the first stage is the introduction stage in this stage the product is being released into the market here the focus is on raising the product awareness and increasing its market share usually the prices are kept as low as possible to capture the maximum market share this typically requires a lot of resources and finance an introduction stage of product life cycle is the most expensive stage for a company this is because when a product is launched for first time sales will be very rest until the consumers become aware of the product and its advantages demand for the product is also quite immature at this stage the principal goal of this stage is to build the demand for the product and get into the hands of consumers hoping to later cash on into the growing popularity during the introduction stage marketing and promotion cost are also very high and company often invest the most in the promoting the product and getting into the hands of consumers coupled with low prices this result in the period of negative profitability or loss for the company second phase is a growth phase in this phase when your product has reached this stage it means it has survived the first introduction phase and has successfully launched their product companies now want their product to remain in this phase for as long as possible it is important to focus on building a brand preference to increase the market share this is when the customer and the competitor start becoming aware of it and your products start to sell at much faster rate public is becoming increasingly aware of your product and the word of mouth is starting to spread as a market expand more competition often drives the price down to make the specific product competitive however the sales are usually increases in volume and generating revenue marketing in this stage is aimed at increasing the product market share because of the product its review and marketing activities sales are expected to pick up sharply in this growth stage since your company can now start to benefit from economies of scale and production profit will also increase as overall profit increases the company can choose to spend more money on the promotional activities to further increase and boost the potential of growth stage this is when the product quality is well maintained so as to not let down or let the audience down the third phase is the maturity phase in this phase the product reaches maturity his sale tends to stop or even slow down giving him that the saturation has arrived your competitors are also bringing the new similar product into the market it is not uncommon to have a product at maturity for decades the best example could be the coca-cola during this stage company has to focus on maintaining their market share through promotions and advertising pricing may also have to come down slowly during the maturity phase company focuses on product differentiation and prices product differentiation is the process of distinguishing a product or service from other these two strategies help them maximize profit to avoid losing these customers company must invest on innovations they must keep updated with the latest form of technologies so if you fail to do this you will start losing customers due to decrease in demand for the product company may introduce new features to the product to enhance its effectiveness it can also sell the product at a lower price compared to its competitors demand is strong and service is now booking out very soon the plot will begin to compete with new alternatives being introduced into the market due to the introduction of similar innovative products and more challenging pricing by competitors to product might become very less convenient for the buyers decline is the fourth and the last phase of product life cycle in this phase the product reaches saturation analytical line is inevitable unfortunately all good things come to an end after enjoying a long period of maturity most product will now start declining decline refers to the decreasing decline in sales and sometimes the market share too product sales will also drop significantly and the consumer behavior changes as there is less demand for product by this time your audience will move to better or new innovative product as they are no longer interested in your product because they offer nothing new as compared to other products that are currently in the introduction or the growth phase finally your product will retire out from the market unless it is able to redesign itself or remain relevant or in demand for example products like typewriters telegrams and many more are in deep of their decline stage in this phase it eventually means it is impossible to manufacture it and still make a profit out of it let us now see some of the examples we have from the product life cycle we'll first construct a plc graph here and we'll mark all the stages here first is the introduction stage the classic examples are the foldable smartphone and the samsung gear vr and self driving cars in the next phase growth phase we have the samsung and the apple smartphones hybrid and the electric cars are the best examples in the maturity phase apple ipod and the newspaper are the classical examples and in the decline phase uh there are a lot of classical examples one starting with the landline phone and typewriters which was first introduced in 19th century as a technology to improve the ease and efficiency of writing but since most of you have been growing watching using these video recorders but with the rise of streaming services like netflix vcr will eventually be phased out in a deep decline stage right round thanks for watching distillery learning have a fantastic day ahead