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Product Life Cycle

The document discusses the product life cycle (PLC) which describes the stages of a product's sales and profits over time. It identifies the four main stages as introduction, growth, maturity, and decline. For each stage, it provides details on sales, costs, profits, and marketing objectives. Common marketing strategies for each stage are also outlined, such as building awareness in introduction and reducing spending in decline. Examples of products are given for some stages. The conclusion notes limitations in using PLC to forecast performance but that it remains a useful framework.

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14K views19 pages

Product Life Cycle

The document discusses the product life cycle (PLC) which describes the stages of a product's sales and profits over time. It identifies the four main stages as introduction, growth, maturity, and decline. For each stage, it provides details on sales, costs, profits, and marketing objectives. Common marketing strategies for each stage are also outlined, such as building awareness in introduction and reducing spending in decline. Examples of products are given for some stages. The conclusion notes limitations in using PLC to forecast performance but that it remains a useful framework.

Uploaded by

nuplin.zain
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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PRODUCT LIFE CYCLE

GROUP MEBERS
IBRAHIM
KAMRAN
PRODUCT LIFE CYLE
• The course of a products sales and profits over its lifetime is
called the Product Life Cycle.

• The product life cycle is based upon the biological life cycle

• The PLC concept can be applied to what are known as


styles, fashions, and fads.

• The PLC concept can described a product class, a product


form, or a brand. The PLC concept applies differently in
each case.

• Not all the product follows the product life cycle.


STAGES OF PLC

• Introduction stage

• Growth stage

• Maturity stage

• Decline stage
• Sales growth tends
to be slow at this
stage

Stages Of Product Life Cycle • Cost per customer is


high
• Introduction stage
• Growth stage • Negative profits
• Maturity stage
• Decline stage • Competitors are few

• The marketing
objective is to
create product
awareness
Marketing strategies (Introduction stage)
• Product - one or few products, relatively undifferentiated

• Price – use cost plus basis to set a price

• Distribution - Distribution is selective and scattered as the firm


commences implementation of the distribution plan.

• Promotion - Promotion is aimed at building brand awareness. Samples


or trial incentives may be directed toward the customers. The
introductory promotion also is intended to convince potential resellers
to carry the product.

• Adertising –Advertising is aimed to be high to build product


awareness
Examples
• Pepsi Tropicana

• Persona Postpaid (Telenor)

• Clear Shampoo
• Rapidly rising sales

• Unit manufacturing
Stage of product life cost declines
cycle
• Rising profits
• Introduction stage
• Growth stage
• Maturity stage • The marketing
• Decline stage objective is to
maximize market
share
Marketing strategies (Growth stage)
• Product - New product features and
packaging options; improvement of product
quality.

• Price – Price to penetrate the market

• Distribution - Distribution becomes more


intensive.

• Promotion- Reduce to take advantage of


heavy consumer demand.

• Advertising- Build brand awareness in the


mass market
Examples
• Warid

• Mountain dew

• Lays
• Sales are at peak

• Cost per customer


Stage of product life low
cycle

• Introduction stage
• Profits are high
• Growth stage
• Maturity stage • The marketing
• Decline stage objective is to
maintain or extend
the market share.
Marketing strategies (maturity stage)
• Product –Either modifying the product or
diversify the brand.

• Price - Possible price reductions in response


to competition while avoiding a price war.

• Distribution –Build more intensive


distribution.

• Promotion - Incentives to get competitors'


customers to switch.
Examples
• Head & shoulder

• Mobilink

• Lux

• Pepsi
• Sales started
declining

• Cost per customer


Stage of product life still at low
cycle
• Profits are at
• Introduction stage
decline
• Growth stage
• Maturity stage
• Decline stage • The marketing
objective is to
reduce the
expenditure
Marketing strategies (Decline stage)
• Product - The number of products in the
product line may be reduced.

• Price - Prices may be lowered to liquidate


inventory of discontinued products.

• Distribution - Distribution becomes more


selective. Channels that no longer are
profitable are phased out.

• Promotion - Expenditures are lower and


aimed at reinforcing the brand image for
continued products.
Examples
• Paktel Gsm

• Pepsi Twist

• Igloo Ice Cream

• Yummy Ice Cream


Conclusion
• The PLC concept can be applied by
marketers as a useful framework for
describing how products and markets
work. But using the PLC concept for
forecasting product performance or for
developing marketing strategies presents
some practical problems.. In practice, it is
difficult to forecast the sales level at each
PLC stage, the length of each stage, and
the shape of the PLC curve.

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