The Product Life Cycle (PLC) describes the life path of a product in four stages, namely Introduction, Growth, Maturity & Decline stage. Every product has a life cycle, some of which has potential to start again from growth stage. When product comes in decline stage, company needs to do some modification or changes to sustain their product in the market. After modification or changes, product comes in growth stage.
Analyzing product life cycle for multiple products is more complex job as you will need to map the various life stages of each of the products. You will have to keep in mind that each PLC is fully optimized for cash generation across the business horizon.
The product life cycle analysis is needs to be revised yearly for planning purpose. Far-sighted marketer should proactively look to rejuvenating the product life cycles of Cash Cow products in the BCG matrix, at their matured and declining stages.
Growth is based on market penetration, market development, product development and diversification -
Market penetration - new market with existing items
Market development - existing market and items
Product development - expansion into new market with new items
Diversification - existing market with new items
When PLC comes in between maturity and decline stage, company should rejuvenating the product life cycle development by enhancing or changing the features, adding new usages for the product, better packaging, technological innovation, enhancing the manufacturing process, creative and unique channel delivery process etc.