Marketing

management
Product life cycle

Introduction
A product is introduced among consumers, and if

consumers perceive it as meeting their needs and want, it

experiences a period of growth. Subsequently, it reaches
the stage of maturity and when it loses its appeal, its

decline starts and eventually is may be taken off the

market (demise). The classical product life cycle curves
are depicted as S shaped and generally divided in four

stages: Introduction, growth, maturity, and decline.

Common Product Life Curves

Sales

Time
(a) Growth-Decline
plateau

Sales

Time
(b) Cycle-Recycle Pattern

Sales

Time
(c) Innovative Maturity or
Scalloped Pattern

Common Product Life Curves

Sales

Profits

Loss
Introduction

Growth

Time

Maturity

(d) Classical Life Cycle Pattern

Decline

Introduction Stage
The introductory stage is viewed as fairly risky and quite expensive
because large amounts of money is spent on advertising and other
tools of marketing communications to create consumer awareness

in sufficiently large numbers, and encourage trial.

3D Televisions: 3D may have been around for a few decades, but
only after considerable investment from broadcasters and

technology companies are 3D TVs available for the home,

providing a good example of a product that is in the Introduction
Stage.

Introduction Stage of the

PLC
Sales

Low sales

Costs

High cost per customer

Profits

Product

Negative
Create product awareness
and trial
Offer a basic product

Price

Use cost-plus

Distribution

Build selective distribution

Build product awareness
among early adopters and
dealers

Marketing Objectives

Advertising

Growth Stage
The growth stage of life cycle is characterised by a sharp rise
in sales. Only a small percentage of new products introduced
survive to reach the growth stage.
Tablet PCs: There are a growing number of tablet PCs for
consumers to choose from, as this product passes through the
Growth stage of the cycle and more competitors start to come
into a market that really developed after the launch of Apples
iPad. Another example is NANO car.

Growth Stage of the

PLC
Sales

Rapidly rising sales

Costs

Average cost per customer

Profits

Rising profits

Marketing Objectives

Maximize market share

Offer product extensions,
service, warranty
Price to penetrate market

Product
Price
Distribution
Advertising

Build intensive distribution

Build awareness and interest
in the mass market

Maturity Stage
Most products after surviving competitive battles, winning
customer confidence and successful through growth phase enter
their maturity stage. The sales plateau, and this flattening of
sales usually lasts for some time because most products in the
category have reached their maturity stage, and there is stability
in terms of demand, technology, and competition.
Laptops: Laptop computers have been around for a number of
years, but more advanced components, as well as diverse
features that appeal to different segments of the market, will help
to sustain this product as it passes through the Maturity stage.

Maturity Stage of the PLC

Sales

Peak sales

Costs

Low cost per customer

Profits

Maximize
profit while
High profits
defending
market share

Marketing Objectives

Product
Price
Distribution
Advertising

Diversify brand and models

Price to match or best
competitors
Build more intensive
distribution
Stress brand differences and
benefits

Decline Stage
Decline stage sets in when customer preferences change due to the
availability of technologically superior products and consumers shift in
values, beliefs, and tastes to products offering more value.

Decline Stage of the PLC

Declining sales

Sales
Costs
Profits
Marketing Objectives

Product
Price
Distribution
Advertising

Low cost per customer

Declining profits
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

Implications and Limitations of Product Life

Cycle Concept

Product life cycle concept shows a framework to spot the occurrence

of opportunities and threats in a product market and the industry. This
can help firms to reassess their objectives, strategies, and different
elements of marketing programme.

Introduction- HUL

Hindustan Unilever Limited (HUL) is India's

largest FMCG company, touching the lives of
two out of three Indians with over 20 distinct

categories in home & personal care products

and food & beverages.

INTRODUCTION-LUX
1960
LUX went
colored

1916
LUX launched
in USA as
Laundry soap

1925
LUX launched
in USA as
Toilet soap

1929
LUX
launched in
India

PRODUCT LIFE CYCLE

Introduction (1929- 1950s)

Company Objectives

Actions

Sales

Low

Cost of manufacturing
Profits
Marketing Objective

High
Negative
Create product awareness in
major cities
Offer a basic product
Higher than Lifebuoy
Created network in major
cities
Awareness among early
adopters.

Product strategy
Price strategy
Distribution
Advertising strategy

Growth- (1950s- 1990s)

Company Objectives

Actions

Sales

Rising Sales

Cost of manufacturing
Profits
Marketing Objective
Product strategy
Price strategy
Distribution

Average cost reduction

Positively increasing
Maximise market share
Offer variants
To penetrate the market
Intensive network in the
entire country
Awareness an interest in
mass market

Advertising strategy

Maturity-(1990s to till date )

Company Objectives

Actions

Sales

Peak sales

Cost of manufacturing

Low

Profits

High

Marketing Objective

Maximize profit while defending

market share

Product strategy

Diversify brand

Price strategy

To match the nearest competitor

Distribution

More intensive focusing on rural

area
Multiple brand ambassadors for
different variants.

Advertising strategy

Thank you