Key Characteristics of the Introduction Phase of the PLC

How the market operates in the introduction stage of the PLC

  • Sales are typically low
  • Firms are losing money, due to low sales and high costs and the need to support the product
  • There is generally a limited choice of products, as the firm is looking to “prove” the product concept to the market – and there is limited funds to offer a broader product portfolio at this time
  • Innovators are the key target market, as they are more likely to make purchase decisions independent of word-of-mouth
  • There is uncertainty within the firm (and possibly the industry) on whether the product will be successful in the long-term
  • As a result, over time there is growing pressure within the firm to reassess whether or not to continue supporting the new product
  • Retailers are typically less interested in the new product while sales are low – this means that they will often seek incentives to take on the product
  • Blogs and specialist websites and magazines provide an opportunity to reach a select market, hopefully rich in innovators
  • Free samples and initial discounting is often required to generate first-time purchases (trials)

Also see

Growth phase of the PLC

Maturity Phase

Decline Phase

Overview of the Product Life Cycle


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