Description: Product life cycle planning is a strategic process that involves organizing and managing the various stages a product goes through from conception to market withdrawal. This approach allows companies to anticipate and manage changes in demand, competition, and technological innovations. Product life cycle planning encompasses several phases, including product development, introduction, growth, maturity, and decline. Each of these stages presents unique challenges and opportunities that require specific attention. For example, during the introduction phase, companies must focus on promotion and awareness creation, while in the maturity phase, the focus may shift towards cost optimization and customer loyalty. Effective product life cycle planning not only helps maximize product profitability but also enables organizations to adapt to market trends and changing consumer needs. In an increasingly dynamic business environment, the ability to manage a product’s life cycle has become a critical factor for long-term success.
History: Product life cycle planning originated in the 1960s when the concept of life cycle was formalized in the field of marketing. One of the first to describe this concept was economist Theodore Levitt in his 1965 article ‘Exploit the Product Life Cycle’. Over the years, the model has evolved and adapted to different industries, incorporating aspects such as sustainability and continuous innovation.
Uses: Product life cycle planning is used across various industries to effectively manage products. It is applied in new product development, marketing strategy, inventory management, and decision-making regarding investment in research and development. It is also essential for brand management and resource optimization throughout the product life cycle.
Examples: An example of product life cycle planning is the launch of a new smartphone. During the introduction phase, the company invests in advertising and promotions. In the growth phase, distribution is expanded and the product is improved based on customer feedback. In the maturity phase, discounts and promotions may be offered to maintain sales, and finally, in the decline phase, the company may decide to discontinue the model or refresh it with innovative features.
