Transcript Product Life Cycle

Product Life Cycle
Presented By
Varsha Lamb
Trupti Joshi
Prajakta Vaikos
Introduction
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The Product Life Cycle refers to the
succession of stages a product goes through.
The product life cycle goes through many
phases and involves many professional
disciplines and requires many skills, tools and
processes. Product life cycle (PLC) is to do
with the life of a product in the market with
respect to business/commercial costs and
sales measures.
Stages of PLC
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Product Development
Introduction
Growth
Maturity
Decline
Product Development
Product Development is the incubation stage of PLC.
There are no sales & firm prepares to introduce the
product . As product progress through its life cycle,
changes in Marketing Mix usually in order to adjust to
evolving challenges & opportunities.
To create successful new products, the company must:
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understand it’s customers, markets and competitors
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develop products that deliver superior value to
costumers
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Graph of PLC stages
Sales and
Profits ($)
Sales
Profits
Time
Product
Development
Losses/
Investments ($)
Introduction
Growth
Maturity
Decline
Introduction Stage of the
PLC
Sales
Low sales
Costs
High cost per customer
Profits
Negative
Create product awareness
and trial
Marketing Objectives
Product
Offer a basic product
Price
Use cost-plus
Distribution
Build selective distribution
Build product awareness among
early adopters and dealers
Advertising
Growth Stage of the PLC
Sales
Rapidly rising sales
Costs
Average cost per customer
Profits
Rising profits
Marketing Objectives
Price
Maximize market share
Offer product extensions,
service, warranty
Price to penetrate market
Distribution
Build intensive distribution
Advertising
Build awareness and interest in
the mass market
Product
Maturity Stage of the PLC
Sales
Peak sales
Costs
Low cost per customer
Profits
High profits
Marketing Objectives
Product
Price
Distribution
Advertising
Maximize profit while defending
market share
Diversify brand and models
Price to match or best
competitors
Build more intensive distribution
Stress brand differences and
benefits
Decline Stage of the PLC
Sales
Declining sales
Costs
Low cost per customer
Profits
Declining profits
Marketing Objectives
Product
Price
Distribution
Advertising
Reduce expenditure and milk the
brand
Phase out weak items
Cut price
Go selective: phase out
unprofitable outlets
Reduce to level needed to retain
hard-core loyal customers
Products at PLC stages
Introduction Growth
Maturity
Decline
Third Gen
Mobile phones
Portable DVD
players
Personal
Computers
Type writers
E-conferencing
Email
Faxes
Handwritten
letters
All in one
racing skin
suits
Breathable
synthetic
fabrics
Cotton Shirts
Shell suits
Iris based
personal Icards
Smart cards
Credit cards
Cheque books
Utility of PLC
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The study of PLC is very useful in marketing & also
for preparing & implementing marketing strategies &
programmes.
Its utility is as follows:
1) Life of a product is limited.
2) Estimation of Profits.
3) Marketing of program.
Strategies During PLC
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2)
3)
The management tries to make product survive in
market for a long period hence it uses various
strategies as below:
At introductory stage it should involve heavy
advertising, extensive selling etc.,
At growth stage marketing strategy may shift to
price appeals & product improvement.
At decline stage the utility of product may be
increased, new uses may be suggested etc.,
Factors Affecting PLC
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Rate of Technical change .
Rate of Man at acceptance.
Ease of competitive Entry.
Risk bearing capacity.
Economic & managerial forces.
Protection of patents.
Goodwill of the Enterprise.