To manage a product’s life cycle, one must focus intensely on the four major stages. However, before proceeding to those stages, one should know the product’s life Cycle. The life Cycle is a series of stages a product goes through from its inception to its eventual demise.
The Four Stages of the Product Life Cycle
Introduction:
Inventory products are usually on-demand products that make their demand once launched. Usually, new products have a very uncertain demand as they are designed per the audience’s demand, but the product usage is not confirmed because of its uncertainty.
Growth:
Once the product starts gaining popularity and gets recognized with good words, the demand increases and is adjusted according to the inventory levels. However, the entire concept of demand revolves around the growth of the product life cycle. Moreover, if the demand is high, the product growth rate will gradually increase and settle well in the economy. However, if the product gains no recognition and there is zero demand, the inventory dies in the warehouse and market.
Maturity:
When the product level stabilizes, and sales start reaching the peak, the product gains maturity. The product is monitored in depth to see whether it can work further. When the product gains a healthy image, life cycle stock boosts on the path of improvement.
Decline:
Where the demand drops or the product popularity never takes place, this is the point where the product loses all its worth and importance, and the inventory levels are avoided because no cost and gain of the word is made. However, the excess stock goes into veins, and nothing comes into a hand because of the lost and unstabilized product life cycle.
Detailed Product Life Cycle Stages
Key Product Management Strategies for Each Stage
The above-stated four stages are the main hut to the product life cycle. However, these four stages are further divided into more sectors, where we learn more about each stage’s criticality.
Introduction Stage:
- Cautious Forecasting
- Agile Product Management
- Monitor Performance Closely
Growth Stage:
- Optimize Inventory Levels
- Efficient Replenishment
- Monitor for Potential Bottlenecks
Maturity Stage:
- Optimize Inventory Turns
- Monitor for Declining Demand
- Consider Product Extensions or Upgrades
Decline Stage:
- Reduce Inventory Levels
- Clearance Strategies
- Plan for Discontinuation
The Inventory Management Mastery Kit from SCMDOJO is a fantastic resource for a comprehensive and practical approach. This kit is designed to help one master inventory management. It includes a course on inventory management fundamentals, an Excel tool for inventory optimization, and detailed guides on stocktaking and cycle counting procedures.
Get the Bundle Offer 'Inventory Management Mastery Kit'
Critical Strategies for Managing the Product Life Cycle
Product Development and Launch:
To manage the product life cycle properly, one needs to start by launching and developing the product. However, before launching, the product must identify potential opportunities and customer needs. Once the product is identified and its scope in the market is determined, it is designed and developed. In this stage, the product finds its creativeness that can directly meet the customer’s expectations.
However, to ensure product quality, it uses multiple testing and validation procedures to identify its performance. Once it’s tested and verified, brand building takes place. Moreover, it helps the market get effective and efficient responses from the audience by applying strategies that create awareness and demand.
Additionally, a pricing strategy is implemented, using optimal pricing theory to maximize revenue. Later, a distribution strategy is implemented to make the channels efficient and establish a targeted audience.
Strategies For Growing Product Life Cycle
Additionally, the market expands its reach, explores news markets, and increases sales in new channels when the product grows slightly. When the products reach new markets and make ground, they start getting a variation in the comments and opinions of customers.
However, when the product line expands, the maker enhances product features to bring it into the limelight and prove it is among the best products. Moreover, improving the products means strengthening the brand image and brand loyalty with a solid step. Hence, customer relationships are built and managed firmly through these steps.
Strategies To Boost Product Maturity
To boost product maturity, product differentiation, market segmentation, cost reduction, product line pruning, and product repositioning are used.
Decline Stage Strategies
Harvesting, divesting, and liquidation are significant strategies when the product’s life cycle declines.
Download Free Procurement KPIs Cheat Sheet PDF
Key Considerations For Aligning Product Life Cycle
There are three essential factors to look into when one is aligning product life cycle that is stated below:
Demand Forecasting For Product Life Cycle
Forecasting must be done carefully to avoid stockouts and excessive inventory storage. Accurate forecasting is one of the main tools businesses use to predict the future. Moreover, multiple ways to forecast demand, including quantitative and qualitative forecasting, are further distributed in a more detailed and demanded structure.
Get To Know More About How To Improve Demand Forecast Accuracy! Click here!
Inventory Optimization
Techniques like ABC analysis and safety stock calculations can help optimize inventory levels. When the inventory is optimized, it benefits the business from the roots to the head of the stem.
Optimise Inventory Planning with this Free Inventory Ageing Report
Supply Chain Visibility
Real-time visibility into inventory levels and supplier performance can improve supply chain efficiency. However, when supply chain visibility is good, it is stable. Supply chain visibility gives a deeper insight into managing the product life cycle.
About the Author – Fatima Salman
Fatima Salman is a dynamic content writer and social media influencer with a knack for crafting compelling narratives that engage and inspire. Currently contributing her expertise at SCMDOJO, Fatima brings over five years of experience as a content writer and two years in media. Her passion for storytelling and strategic content creation has made her a key player in digital marketing.
Fatima earned her bachelor’s degree in Economics and Finance from the NED University of Engineering and Technology, where she cultivated a solid analytical foundation that complements her creative skills. Her versatile background allows her to seamlessly blend data-driven insights with captivating content to drive impactful results.
Beyond her professional endeavors, Fatima is a recognized social media influencer. She shares her unique perspectives and lifestyle inspirations with a growing online community.
