International Product Life Cycle
The International Product Life Cycle (IPLC) is a tool for explaining how a product moves from one stage to the other in the different countries of the world market. The IPL is an extension of the product life cycle. While the latter emphasizes increased complexities at every stage, the former involves traversing the characteristics of each market.
International business can take advantage of using the concept of the International Product Life Cycle (IPLC) to design marketing plans and production concepts clearly and adequately approach issues surrounding the product. In other words, with the recognition of the stages in the different markets, a business can design and focus on a designated approach to the market and its surrounding dynamics.
Benefits of International Product Life Cycle
- Develop effective Global Marketing Planning
- Optimize Global Production and Sourcing Planning
- Entry Mode Strategies of International Expansion
- Life Cycle Extension of Products within Different Markets
Stages in the International Product Life Cycle
The product life cycle of the IPLC is a replica of the traditional product life cycle, and it generally includes four key stages:
- Introduction: The product is launched in a new international market, often the developed home country first. Here, the attention is on the building of an awareness level; an image for the brand is established and the education of the potential customer in regard to product features and benefits is made.
- Growth: When the product has started to be revolutionary in its initial market, it then gets introduced into the other countries. This stage involves the exponential sales development, the increased competition, and the demand for really effective production and distribution channels.
- Maturity: The period during which a product reaches peak sales in established markets, hence the focus shifts to sustaining its market share and profitability. Companies may engage in price competition, product improvements, or new marketing campaigns to keep the product’s life cycle going.
- Decline: Sales begin to slow down because of market saturation, new technologies, or changing consumer preferences. Perhaps companies must consider product redesigns, cost-cutting measures, or exiting the market altogether.
The International Product Life Cycle (IPLC) framework acknowledges that successful product launches abroad require considerations of several aspects: the right market selection based on economic development, infrastructure, and cultural preferences; adapting the marketing mix (message, price, distribution, and promotion) to resonate with each market’s nuances; and, lastly, as the product matures across different markets, so may production and sourcing strategies, which can even engage in outsourcing to clock in at the optimal costs achievable.