The Product Life Cycle shows the life of a product from its conception to its death

There are five stages in the product life cycle:

1. Research and development – the product is being developed, high costs

2. Introduction – the product is introduced to the market, sales are low, profit is negative as research and development costs are being met

3. Growth – Sales increase rapidly, firm starts to make a profit

4. Maturity – Sales reach their peak, profits start to decline as competition increases

5. Decline – Sales fall, profits begin to fall, the product might be taken off the market