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Session 20 Product Life Cycle
Session 20 Product Life Cycle
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
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