The product life cycle is one of the things that entrepreneurs pay attention to. Because every existing product must have a product life cycle. Nothing lasts forever, including products. Every product must have had a heyday until then the product slowly declined or even disappeared. This cycle that happen to it is known as the product life cycle.
Product life cycle or in Indonesian means product life cycle. The product life cycle is the life cycle of a product when it appears, then develops, until then it disappears from the market. This cycle helps product manufacturers to determine what strategies or steps to take in the future. By analyzing the product life cycle, you can prepare marketing strategies that can be used.
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In general, there are 4 concept stages of the product life cycle itself, namely:
This is the stage where you introduce the product to the general public. This stage is certainly a stressful part of the product life cycle. Because at this stage, you have to introduce new products to the public who don't know your product. Apart from being tense, this stage can be said to be the stage where the company has to spend money to build public awareness of the product. If the product is relatively new, a lot of costs must be spent as part of the promotion so that target customers are aware that the product exists or exists.
If the previous stages went well, progress will be seen. If not, then more effort is needed at the introduction stage so that consumers can get to know the product well. At this stage of development, the product has received attention from the target market. Products are also increasingly being consumed by the public so production intensity and profits are also increasing. However, an even bigger challenge arose. The success of products that have built awareness will be directly proportional to the emergence of competing products. This is where the important role of brand loyalty. After awareness is well built, companies need to bind consumers who are already interested in the product. At this stage product expansion also needs to be done to reach more and more target markets.
This stage is usually one of the longest-lasting stages in a product. At this stage, the product has been accepted by the intended target market. At this stage, public consumption of the product is not as much as when the product was in the development stage. Consumption at this stage is usually more stable and consistent. However, to avoid a downturn, companies usually use this stage to provide innovations to survive or if possible, reach new target markets.
The stage that all companies fear. But this is a stage that will come sooner or later. There are many factors behind this decline. Because of that sometimes this stage can not be predicted. To avoid further decline, the company must implement a new strategy in dealing with the market which may also have changed.
Each product has a different product cycle life. The product will pass through the product cycle life even though it will experience a different time. Many products remain static during the recognition process. Viral products will usually be at a stage of development where suddenly there will be consumption in quantities that are often fantastic. Then most of the existing products are products in the maturity stage. Usually products with brands that we always use. Meanwhile, goods in the process of decline will be seen less frequently because their production and distribution are not as massive as they used to be.
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Factors Affecting Product Life Cycle
In reality, the product cycle life is much more complex. Some products only experience a product cycle life in a few months and then disappear. Some products still exist for decades. The product cycle life itself also depends on the market, so several external factors affect the product cycle life, namely.
Technological progress is inevitable. Especially for electronic goods. The rapid pace of technology makes products no longer linger at this stage. Technological advances in products can certainly shift the target market that was previously intended. Not to mention that increasingly advanced scientific research can find new raw materials that can be processed into good products or even raw materials that are often used are not good or even bad for consumption.
The economic situation will certainly have a major influence on the product cycle life stage. The economic situation will certainly be in line with people's purchasing power. For example, during this pandemic. The people's purchasing power, which had decreased at the start of the pandemic, had an impact on non-staple products. People are more focused on basic products so entrepreneurs have to rack their brains. Many products have entered a decline stage due to the economic situation during the pandemic.
- Changing of Value
Each period of course holds a different value. This will also affect the product cycle life. An example is a layer of society that starts consuming vegetables because they think eating animal meat is violent. Of course, the product cycle life of meat will change from before.
Trends change quickly, they can even change in a matter of months or years. Trend changes are very dynamic, so if a product is issued following a trend, of course, it is most likely that the product cycle life depends on how long the trend lasts. The most obvious example is probably in the fashion section. The dynamic development of fashion makes products that are not up-to-date look old and decrease their market value.
- The Social and Political Situation
This situation certainly has a big impact, especially if the company's business is an export-import business. Deteriorating political conditions between countries can harm product cycle life. Conditions that do not improve will cause the product to experience a decline in a fast tempo. Like because of the embargo for example.
Competition is one factor that must exist and cannot be avoided. Competition will always exist and it depends on the company how handles the competition. Especially if competitors compete on the same or larger scale. That's when innovation needs to be done. Product comparisons also need to be analyzed to maximize potential and increase product cycle life.
With a product that has a life cycle, a business cannot only depend on a particular product. They must continue to innovate so that other new products emerge that are liked by the public. Business people need to know this so that the transition to new products can run smoothly.
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