Session 13 & 14

PRODUCT LIFE
CYCLE
 PRODUCT LIFE CYCLE
Maturity

S Decline
A
L
E
S growth

introduction

TIME
 PRODUCT LIFE CYCLE
Optimum Sales Realisation

Maturity Decline

S growth
A Optimum Profit

L
E
S introduction

Profit

Break even Point TIME

New Product
Development
Cost
PLC concept helps Marketing Strategy Formulation
►Facilitates pre-planning the product launch.
►Facilitate prolonging the profitable phase.
►Facilitates investment decisions on products.
►Facilitates choice of appropriate entry strategy.
►Facilitates choice of the right time to exit.
►Provides useful for managing customers.
 PLC operates at 3 levels
1. Product Level
1. Computers
2. Televisions
2. Product sub-category level
3. Super frame computers, personal computers, mini computers
4. Portable Televisions, Plasma Televisions
3. Brand level
5. Hewlett Packard, Dell, Compaq, Wipro, Acer
6. Videocon, Sony, LG, Aiwa, Sansui