PRODUCT LIFE CYCLE

GROUP MEBERS
IBRAHIM
KAMRAN
 PRODUCT LIFE CYLE
• The course of a products sales and profits over its lifetime is
called the Product Life Cycle.

• The product life cycle is based upon the biological life cycle

• The PLC concept can be applied to what are known as

styles, fashions, and fads.

• The PLC concept can described a product class, a product

form, or a brand. The PLC concept applies differently in
each case.

• Not all the product follows the product life cycle.

 STAGES OF PLC

• Introduction stage

• Growth stage

• Maturity stage

• Decline stage

Stages Of Product Life Cycle
• Introduction stage
• Growth stage
• Maturity stage
• Decline stage
• Sales growth tends
to be slow at this
stage
• Cost per customer is
high
• Negative profits
• Competitors are few
• The marketing
objective is to
create product
awareness
 Marketing strategies (Introduction stage)
• Product - one or few products, relatively undifferentiated

• Price – use cost plus basis to set a price

• Distribution - Distribution is selective and scattered as the firm

commences implementation of the distribution plan.

• Promotion - Promotion is aimed at building brand awareness. Samples

or trial incentives may be directed toward the customers. The
introductory promotion also is intended to convince potential resellers
to carry the product.

• Adertising –Advertising is aimed to be high to build product

awareness
 Examples
• Pepsi Tropicana

• Persona Postpaid (Telenor)

• Clear Shampoo
 • Rapidly rising sales

• Unit manufacturing
Stage of product life cost declines
cycle
• Rising profits
• Introduction stage
• Growth stage
• Maturity stage • The marketing
• Decline stage objective is to
maximize market
share
 Marketing strategies (Growth stage)
• Product - New product features and
packaging options; improvement of product
quality.

• Price – Price to penetrate the market

• Distribution - Distribution becomes more

intensive.

• Promotion- Reduce to take advantage of

heavy consumer demand.

• Advertising- Build brand awareness in the

mass market
 Examples
• Warid

• Mountain dew

• Lays
 • Sales are at peak

• Cost per customer

Stage of product life low
cycle

• Introduction stage
• Profits are high
• Growth stage
• Maturity stage • The marketing
• Decline stage objective is to
maintain or extend
the market share.
 Marketing strategies (maturity stage)
• Product –Either modifying the product or
diversify the brand.

• Price - Possible price reductions in response

to competition while avoiding a price war.

• Distribution –Build more intensive

distribution.

• Promotion - Incentives to get competitors'

customers to switch.
 Examples
• Head & shoulder

• Mobilink

• Lux

• Pepsi
 • Sales started
declining

• Cost per customer

Stage of product life still at low
cycle
• Profits are at
• Introduction stage
decline
• Growth stage
• Maturity stage
• Decline stage • The marketing
objective is to
reduce the
expenditure
 Marketing strategies (Decline stage)
• Product - The number of products in the
product line may be reduced.

• Price - Prices may be lowered to liquidate

inventory of discontinued products.

• Distribution - Distribution becomes more

selective. Channels that no longer are
profitable are phased out.

• Promotion - Expenditures are lower and

aimed at reinforcing the brand image for
continued products.
 Examples
• Paktel Gsm

• Pepsi Twist

• Igloo Ice Cream

• Yummy Ice Cream

 Conclusion
• The PLC concept can be applied by
marketers as a useful framework for
describing how products and markets
work. But using the PLC concept for
forecasting product performance or for
developing marketing strategies presents
some practical problems.. In practice, it is
difficult to forecast the sales level at each
PLC stage, the length of each stage, and
the shape of the PLC curve.