 Introduction Stage

 Growth Stage

 Maturity Stage

 Decline Stage

 Introduction Stage

 At this stage there may not be ready market for product; sales are low; profits seem a
remote possibility; demand has to be created and developed and product is prompted for
use.

 At this stage there may not be ready market for product; sales are low; profits seem a
remote possibility; demand has to be created and developed and product is prompted for
use.

 The duration of the stage depends on nature of product ,its price, its technological newness
and consumer’s view.

 crucial decision in this stage is pricing

 strategy and it decided on (1) Market

skimming and (2) market penetration

 Poor Design of the Product.

 Incorrectly Positioned.

 Launched at Wrong Time.

 Price too High.

 Poor Advertised.

 In this stage sales will start climbing quickly; Attracted by the opportunities for profit ,new
competitor will enter the market; Price remain same or fall slightly; Promotion spending is
same or slightly higher level.
 Customer- Early adopter of the product

 The Market is shared among the various firm. Company has to reconsider its pricing
strategies.

 In this stage sales will slow down; Its normally lasts longer than previous stages; It posses
strong challenges to marketing management.

 The slowdown in sales growth results in many producers with many product to sell; prices
becomes low; weak competitors start dropping out product.

 Company looks for new users and market segment.

 Sales declines due to technological

advances, shifts in consumer tastes and increased domestic and foreign

competition.

 Some firms withdraw from the market, Those remaining reduce products offer, It might be
slow or Rapid.
 Introduction Growth Maturity

Cost High cost per Average cost per Low cost per
customer customer customer

Sales Low Sales Rapidly Peak sales

rising sales

Profit Negative Rising Profit High Profit

Customers Innovators Early Adopters Middle Majority

Strategies Create product Maximize market Maximize profit

awareness and share while defending
trial market share

Advertising Build Product Build awareness Stress Brand

awareness among and interest in the differences and
early adopters mass market benefits
and Dealers

Sales promotion Use heavy sales Reduce to take Increase to

promotion to enter advantage of encourage
market heavy consumer brand switching
demand
Sales and Profits Over the Product’s Life From Introduction to Decline
PLC concept lies in the fact that each stage is characterized by a typical
market behavior and lends itself to the application of certain specific
marketing strategy. Understand and managing it effectively can help in
prolonging the profitable phase of product’s lifespan.

 The life cycle of Brand cannot be projected and studied independent of the
product sub- category/product category to which it belongs.

} PLC does not give actual life phase, it cannot be exactly predicted

} It not give any foolproof plans in advance.