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PLC Strategies and Focus

PLC Strategies and Focus

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Published by: hsonisubscriptions on Nov 03, 2010
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Table 1: Strategies of each product life cycle phase

Development Phase Make your product known and establish a test period Absent, if your competitors are not aware of your developments. Limited number of variations High sales to middle men Introduction Phase Acquire a strong market position Growth Phase Maintain your market position and build on it Price and distribution channel pressure Improvement – upgrade of product Re-estimation of price policy Distribution channels added as consumer demand increases Maturity Phase Defend market position from competitors and improve your product Establishment of competitive environment Price decrease Decline Phase “Milk” all remaining profits from product Some competitors are already withdrawing from market Variations and models that are not profitable are withdrawn Maintain price level for small profit Selective Distribution (Non-profitable channels phased out)

Strategic Goal


Early entry of aggressive competitors into the market Introduction of product variations and models Aggressive price policy (decrease) for sales increase Exclusive and selective distribution through certain distribution channels and creation of high profit margins for middle men (until consumer acceptance of the product is achieved) Reinforcement of product awareness and preference


Price Goal Place / Distribution Goal

Defensive price policy Distribution intensifies & incentives offered to encourage preference (middle men margins are reduced) Maintain loyal to middle men

Promotion Goal

Creation of public – market product awareness

Reinforcement of middle men

Gradual decrease

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