Product Life Cycle - Presentation Transcript

1.
 Product Life Cycle (PLC): The Product Life Cycle (PLC) is based upon the biological life cycle. For
example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down
roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die
out (decline).
 Each product may have a different life cycle
 PLC determines revenue earned
 Contributes to strategic marketing planning
 May help the firm to identify when a product needs support, redesign, reinvigorating, withdrawal,
etc.
 May help in new product development planning
 May help in forecasting and managing cash flow
2. product life cycle Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/
Investments ($) Sales and Profits ($)
3. Introduction Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Low sales High cost per
customer Negative Create product awareness and trial Offer a basic product Use cost-plus Distribution Build
selective distribution Advertising Build product awareness among early adopters and dealers
4. Growth Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average
cost per customer Rising profits 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
5. Maturity Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per
customer High profits Maximize profit while defending market share Diversify brand and models Price to match
or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and
benefits
6. Decline Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Declining sales Low cost per
customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Distribution
Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal
customers
7. Example: New Flavor of Pepsi
○ Stage 1: Market Introduction
 Pepsi bottles the new flavored product and places it on the market for consumers.
 Pepsi also spends a lot of money advertising the new flavor creating awareness.
○ Stage 2: Market Growth
 Customers like the flavor and begin to make routine purchases.
 Coke introduces their competing flavor.
8.
○ Stage 3: Market Maturity
 More competitors enter the market taking some of Pepsi’s profits.
○ Stage 4: Sales Decline
 Customers have moved on to the next new flavor.
 Some loyal fans stay behind.
 dcsastudent + Follow
2640 views, 0 favs, 1 embed

Related

• Plc 229 views

• Npd & Plc 236 views

• Product Strategies 256 views

• New Product Development And Product Life-Cycle Strategies 8738 views

• Chapter 9 50 views

• 4604397 238 views

• bs 278 views

• Product Life Cycle Strategies Unit 2 399 views

• Product Life Cycle Strategies Unit 2 318 views

• A Simple Guide To The Efficient Enterprise 6858 views

More by user

• Rural Management Ppt On Coke 1397 views

• 75007 Product Management 213 views

• Dlm Module 1 &2 847 views

• Channel Management Abs M&S 989 views

• Intro 374 views

• Selection And Appointment 312 views

 View all presentations from this user

About this presentation

USAGE RIGHTS

© All Rights Reserved

STATS

• 0 Favorites
• 0 Comments
• 84 Downloads
• 2,609 Views on
SlideShare
• 31 Views on
Embeds
• 2,640 Total Views
EMBED VIEWS

• 31 views on http://www.slideshare.net
ACCESSIBILITY

View text version

ADDITIONAL DETAILS

• Uploaded via SlideShare

• Uploaded as Microsoft PowerPoint
Flagged as inappropriate Flag as inappropriate
Top of Form
Flag as inappropriate
Select your reason for flagging this presentation as inappropriate. If needed, use the feedback form to let us know
more details.

None Flag

Cancel
Bottom of Form
File a copyright complaint

Categories
• Technology
• Business & Mgmt
Follow SlideShare

• Twitter

• Facebook

• SlideShare Blog

0 tweets
2 shares
 1 share
WordPress
Blogger