The 4 Stages of the Product Management Lifecycle

Successful products are more than just a good idea that either catches on or doesn’t. Behind each thriving product is a team that understands the phases of the product lifecycle.

Each product stage presents a unique set of challenges that require a strategic and innovative approach. Despite rapid changes in technology, competition, and customer preferences, product teams can remain competitive for longer periods with effective product lifecycle management.

This article explores the four stages of the product management lifecycle so you can begin applying the knowledge within your team and organization.

What Is Product Lifecycle Management?

Product lifecycle management, or PLM, refers to the management of a product as it goes through the stages of the product journey. Depending on the product stage, different team disciplines, such as marketing and customer service, will collaborate and contribute their expertise to ensure the product’s success. Both product managers and product owners play significant long-term roles in the product lifecycle.

Strategically managing the product lifecycle helps agile and non-agile teams reach their goals. Moreover, agile product lifecycle management can provide teams with even more opportunities to adapt, like short customer feedback loops and iterative improvements.

Product Lifecycle Vs. Project Lifecycle: What’s the Difference?

Even though product lifecycle and project lifecycle sound similar, they are very different. The product lifecycle follows the journey of a product, such as a new app, from the initial idea to its market decline. On the other hand, the project lifecycle follows the timeline of a project, like the onboarding of a candidate, from start to finish. This article is focused on product lifecycle management.

What Are the 4 Stages of the Product Management Lifecycle?

The four stages of the product management lifecycle are:

Introduction stage
Growth stage
Maturity stage
Decline stage

It's important to note that products rarely follow a strictly linear path through the product lifecycle. While the traditional product lifecycle stages—Introduction, Growth, Maturity, and Decline—are often presented in sequence, real-world products frequently experience non-linear and iterative paths through these phases. This article describes them in sequence for illustration purposes, but it is crucial to be aware that there are many forces that may disrupt the stages of the product lifecycle.

Let’s take a closer look at each stage in the product lifecycle and its key function.

1. Introduction Stage

The first stage of the product lifecycle is the introduction stage. This is the phase in which a product idea is born. The idea is then proven through market validation, pushed into development, and released on the market.

The introduction stage includes:

Conducting market research
Building a product concept
Prototyping
Designing & testing the product
Launching the product
Kicking off product marketing efforts
Collecting customer feedback

Introduction Stage Example

Let's use a fictional example based on a company called "MealDash," which we will continue to refer back to in this article. MealDash is a meal delivery service similar to Uber Eats. App users can submit a local take-out order to be delivered by a MealDash driver.

MealDash is at the introduction stage of the product management lifecycle. The startup’s founder and newly hired team are preparing to launch the MealDash app. With global plans, they conducted market research on competing products and consumer behavior to ensure there was a need for their product.

To manage costs, they plan to market the product locally by recruiting drivers in the community, collaborating with local businesses, and expanding their reach later. The team is in the process of hiring its first thirty meal delivery drivers. On the day of the product launch, MealDash employees will distribute keychains with QR codes at a busy downtown coffee shop to encourage initial downloads.

2. Growth Stage

At the growth stage, a product has earned its place in the market. Leads are converting into customers, and existing customers are converting into loyal customers. As the product grows and sales increase, the focus turns to improvement and expansion.

The growth stage includes:

Improving infrastructure
Focusing on customer acquisition & retention
Implementing product improvements
Expanding market reach
Increasing marketing budgets

Growth Stage Example

Six months after its launch, MealDash is in the growth stage, with 750 active users and 315 part-time meal delivery drivers. The app gets five to ten new user signups every day. Now that MealDash is established in the local market, the team plans to recruit drivers and encourage account signups across their state.

With the recent increase in profits, MealDash was able to add new team members to their product development and marketing teams. They also invested in new equipment and tools, including a CRM, to measure the effectiveness of their new rewards program.

The marketing team invested significant time into building a brand presence on TikTok and began collaborating with influencers to offer discount codes to new app users. They also started running TikTok ads to improve brand awareness.

Finally, the customer service and development teams work closely to improve the user experience. User issues are forwarded to the product team for potential improvements and new feature prioritization.

3. Maturity Stage

A product has reached the maturity stage when it’s reached peak success. An organization may not be aware that its product reached maturity until after the fact. The product has claimed a portion of the market, and profit is at an all-time high. In response, similar products with unique selling points will enter the market. Increasing competition means that product teams must work diligently to maintain market position.

The maturity stage includes:

Solidified market share
Highest revenue
Established customer base and brand loyalty
Increased market competition
Demand for creative strategy

Maturity Stage Example

Four years after its launch, MealDash has reached the maturity stage. With millions of users across the U.S., the app has become a go-to convenience for those who need their favorite take-out meal delivered in a pinch.

Most people in their target audience are familiar with MealDash, and many are either loyal customers or have previously tried the service. Product popularity has also led to MealDash references in pop culture.

While revenue and customer satisfaction have never been higher for MealDash, the market is getting more competitive. Veteran companies in the meal delivery market have adapted to include the unique features of MealDash. At the same time, new companies are popping up that offer unique perks and discounted rates. The MealDash team is working together to retain their customers and optimize their processes to improve profit margins.

4. Decline Stage

The decline stage takes place when sales have steadily plateaued and begin to fall. The main factors that trigger the decline stage include rising market competition and evolving technology and consumer behavior.

Organizations face difficult financial decisions at the final stage of the product lifecycle. To protect the remaining profits and prevent further loss, a company may become acquired by a larger one, spend less on production, rebrand the product, or close its doors.

Decline Stage Example

At the decline stage, MealDash has experienced a steady dropoff in new account signups and active users. Due to the dip in sales and shrinking profits, organizational leaders at MealDash are sitting in strategic meetings to brainstorm how to move forward.

MealDash made the difficult decision to let go of several team members and return to their local marketing efforts. However, with little progress, they closed the business the following year.

Instead of closing its doors, with an earlier detection of the decline stage, MealDash could have taken steps to slow and extend the decline phase and/or invest in an adjacent product for which the product lifecycle would begin again.

Conclusion

As we can see in the case of the fictional company MealDash, product lifecycle management is an exciting journey that includes natural ups and downs. The process requires varying expertise, a strategic plan, and continuous adaptation to remain competitive.

Consider our courses to take your product lifecycle management to the next level. In our Product Management class, you’ll walk away with strategic knowledge for each stage of the product lifecycle. Or take our Lean Portfolio Management class, which helps students learn how to fund, manage, and measure product initiatives.

Drive product success. Find a class today.

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Article

The 4 Stages of the Product Management Lifecycle

What Is Product Lifecycle Management?

Product Lifecycle Vs. Project Lifecycle: What’s the Difference?