Product Lifecycle Management (PLM) includes the handling of products or goods as it moves through the different stages of product lifecycle. PLM starts from the manufacturing of a product and continues till marketing of the product.
Product Lifecycle Management helps in decision-making. It helps the business to decide on pricing, promotion, expansion, and more.
Understanding the Basics of Product Lifecycle Management
A well-integrated product lifecycle management helps to bring together all the departments and workforce who are involved in the different stages of production and development. It helps to streamline all the activities.
Many businesses use software for PLM. A PLM software helps an organization to eliminate the complexity and challenges involved in introducing or developing a new product. Along with Customer Relationship Management (CRM), Enterprise Resource Planning (ERP), and Supply Chain Management (SCM), PLM is one of the core components of an organization’s technological structure.
Different Stages of Product Life
Every product has its own journey which involves different stages. For a sound product management, one needs to understand the four main stages of a product’s lifecycle.
Stage 1
This is the initial stage of a product’s lifecycle. It is commonly known as the Development Stage. It is the first time when a product is introduced into the market. Sales are slow during this stage as there is limited awareness of the product concerned.
During this stage, the priority should be to increase product awareness in the market.
Stage 2
This is one of the most essential stages of a product lifecycle. It is commonly known as the Growth Stage. At this stage, the product awareness is continuously increasing and sales are more as compared to the development stage.
This is an ideal stage for the product but there might be some drawbacks. There should be a well-planned price strategy as your competitors might begin to launch a duplicate product at a lesser price. You might need to work on adding continuous variations to make the product better.
Stage 3
This is also known as the maturity stage. When a product reaches this stage, it means that a product has significant awareness and a sudden consumer base. However, the competition is maximum at this stage. Furthermore, there are limited opportunities for development.
At this stage, sales can be determined by pricing and marketing strategy.
Stage 4
Last but not the best. This is the final stage of a product journey which is also known as the decline stage. At this stage, the market demand will be very less due to a variety of reasons.
Businesses might discontinue the product or add features to the product and continue selling it.
Why is Product Lifecycle Management Important and Impact on Business Growth?
Product Lifecycle Management plays a big part in business growth by providing the business vital information about the product at its different stages, which influences marketing decisions.
For instance, a new product in its development stage needs to be explained. Sound Product Lifecycle Management can influence the fundamental elements of a product even after it reaches its full maturity. At this stage, a product can still grow if proper updates and augmentation is introduced.
A well-integrated PLM software for small businesses has an array of benefits.
- Introducing high-quality products into the market
- Better product safety through appropriate testing
- Bringing down prototyping costs
- Timely identification of sales opportunities
- Proper utilization of original data
- Better management of seasonal fluctuation
- Reduce material overhead and costs with better forecasting
- Better supply-chain management with better collaboration
Conclusion
A proper PLM helps to stay one-step ahead of the competition. There is no denying the fact that modern marketing is continuously evolving. Be it fresh competition, guidelines, or the dynamics are always presenting newer challenges.
This is where one needs expert assistance for proper PLM implementation. At Simbus, we have been doing exactly that for years. We leverage decades of domain expertise in FMCG, Fashion and Retail, and Discrete Manufacturing.
We provide a range of business consulting and PLM solutions powered by state-of-the-art digital technology to manage all the stages of a product lifecycle.
