Product life cycle: the phases

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The life cycle of a product is essentially made up of four phases : introduction , growth , maturity and decline . Let's look at them together:


The length of the introduction period depends on the market's predisposition to accept the new product: in this phase the costs for the company are very high having to present a mostly unknown product which will consequently be followed by non-existent profits and limited distribution .


Afterwards, consumers start to know about the product, the company will then have to identify the possible weak points to correct them in order to promote the growth of the product.

With the sales curve rapidly rising, the first profits are azerbaijan phone number data
achieved, thus arriving at a balance between income and expenses, thus beginning the period of profit for the company, in which unit production costs decrease, new distribution channels are created and competitors begin to enter.


In this third phase, sales stabilize, the customer and supplier base is solid , and prices begin to decrease to counter competition. Although sales generate profits, these will soon begin to decrease.

Stage 4: Decline
The product becomes outdated compared to competing products, sales decline and profit margins shrink leading the company to replace it with newer versions or remove it from the market altogether.

Consequently, the life cycle cost of the product is the cumulative cost over the time interval between the conception of the product and its disposal .