This article is about the commercial term to describe the life of a product in the market. Unsourced material may be challenged and removed. To create successful phases of project management life cycle pdf products the company must understand its customers, markets and competitors.
It provides product information for companies and their extended supply chain enterprise. PLM solutions help organizations overcome the increased complexity and engineering challenges of developing new products for the global competitive markets. The product life cycle proceeds through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Products have a limited life and thus every product has a life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
Once the product is designed and put into the market, the offering should be managed efficiently for the buyers to get value from it. Before entering into any market complete analysis is carried out by the industry for both external and internal factors including the laws and regulations, environment, economics, cultural values and market needs. From the business perspective, as a good business, the product needs to be sold before it finishes its life. In terms of profitability, expiry may jolt the overall profitability of the business therefore there are few strategies, which are practiced to ensure that the product is sold within the defined period of maturity. Advertising: Its purpose is to get additional audience and potential customers.
Price reduction: Many customers are attracted by price cuts and discount tags. Adding new features: Adding value to the product catches the attention of many buyers. Packaging: New, attractive, useful or eco-friendly packaging influence the target customers. Changing customer consumption habits: Promoting new trends of consumption can increase the number of customers. Special promotions: Raising interest by offering Jackpot and other offers. GLTBI, environment and animal protection, etc.
Something important to notice is that all these techniques rely on advertising to become known. Advertising needs the others to target other potential customers and not the same over and over again. This is the stage in which the product has been introduced first time in the market and the sales of the product starts to grow slowly and gradually and the profit received from the product is nominal and non-attained. The market for the product is not competitive initially and also the company spends initially on the advertisement and uses various other tools for promotion in order to motivate and produce awareness among the consumers, therefore generating discerning demands for particular brand. The products start to gain distribution as the product is initially new in the market and in this stage the quality of the product is not assured and the price of the product will also be determined as low or high. In the growth stage, the product is present already in the market and the consumers of the products are habitual of the product and also there is quick growth in the product sales as more new and new customers are using and trying and are becoming aware of the product. The customers are becoming satisfied from the product and they bought it again and again.