Product Lifecycle Management: Beyond conventional applications, by Yusuf Alhaji Lawan
Product Lifecycle Management (PLM) is an essential marketing concept that has proven decisive to the survival of products in the market. As a cornerstone of product development and manufacturing, PLM enables companies to streamline processes, reduce costs, and enhance product quality. While traditionally applied to physical product design, production, and disposal, the principles and methodologies of PLM hold immense potential for innovative applications beyond its conventional scope, offering solutions to complex challenges across diverse industries and domains.
The Product Lifecycle Management model depicts a product’s journey through four sequential stages; Introduction, Growth, Maturity, and Decline. Every product inevitably passes through these phases, from its initial market debut to its eventual decline, making it vital to understand and manoeuvre these stages effectively.
The Introduction stage marks the launch of a new product into the market, characterised by low initial demand and limited customer awareness. To gain traction, aggressive promotional efforts are essential to capture the attention of prospective buyers. This stage can be financially challenging, with possible losses and setbacks that may be exhausting. Nevertheless, perseverance and strategic efforts are crucial to steering this phase successfully, paving way for future success.
The Growth stage signifies a pivotal milestone in a product’s lifecycle, where it gains significant market attention. At this stage, the product’s popularity increases, and sales volumes rise, leading to improved revenue streams. As the product’s acceptance grows, the company begins to realise its potential, witnessing a notable reduction in losses and a substantial increase in profits. While the product’s drive is building, the company can leverage this growth phase to expand its market share, enhance brand visibility, and further refine its product offerings to meet evolving customer needs. Effective management of the Growth stage is key to sustaining momentum and setting the stage for long-term success.
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The Maturity stage represents the peak of a product’s lifecycle, where it achieves widespread acceptance and secures a significant market share. This stage is marked by repeat purchases, customer loyalty, and established brand recognition. However, it is also a critical juncture, as the market becomes increasingly flooded, and competition intensifies. As the company strives to maintain its market position, it must manage a myriad of challenges, including new competitors, shifting customer preferences, and potential market fragmentation. Failure to effectively manage these challenges can lead to stagnation and ultimately, the Decline stage, where the product’s sales and popularity begin to wane, threatening its long-term viability.
The Decline stage marks the final phase of a product’s lifecycle, where sales and demand begin to decrease, and the product’s popularity dwindles. This decline can be attributed to various factors, such as changes in consumer preferences, increased competition, technological advancements, or market saturation. As the product’s sales continue to decline, it becomes challenging for the company to maintain profitability, and the product may eventually be phased out or replaced. Effective management of the Decline stage involves strategic decisions, such as revamping the product, targeting new markets, or discontinuing production to minimize losses and allocate resources to more promising products.
The product lifecycle framework can be applied beyond traditional product development to various fields, including organisational management. It can be used to understand and analyse the life cycles of diverse entities, such as unions, associations, clubs, societies, social movements, faith-based groups, non-governmental organisations (NGOs), and other similar structures. This framework can help these organisations identify stages of growth, maturity, and decline, and develop strategies to sustain themselves and achieve their objectives.
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Many organizations face significant challenges at various stages of their lifecycle. Some may struggle to overcome the hurdles of the Introduction stage and ultimately fail to survive. Others might experience rapid growth but falter due to lack of preparedness for the demands of the Growth stage. Meanwhile, organisations currently at the Maturity stage may be battling intense pressure, teetering on the brink of decline. A careful examination of these stages can serve as a warning sign, enabling organisations to take proactive measures to revitalise themselves and avoid the inevitable decline.
This article aims to serve as a reality check for companies to assess their products’ lifecycles, recognising the stages of introduction, growth, maturity, and decline. By doing so, they can anticipate challenges, capitalise on opportunities, and develop targeted strategies to extend the lifespan of their products. Similarly, for organisations, this encourages a thorough evaluation of their current stages, identification of potential roadblocks, and development of proactive solutions to push sustainability and success. Moreover, the product lifecycle concept can be applied beyond traditional product development to various fields, such as social movements, non-profit organisations, and even personal career development.
Yusuf Alhaji Lawan writes from Hausawa Asibiti Ward, Potiskum Yobe State. He can be reached via nasidi30@gmail.com
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