SESSION 4

PRODUCT LIFE CYCLE

• Once a product is introduced in the market it goes through a number
of stages, till it exits the market. For example: Televisions,
Automobiles, Mobilephones, Typewriters, etc.

• A typical PLC reflects the course a product’s sales and profit take
over its lifetime.
PLC STAGES

NPD
• Introduction: Slow sales growth and nonexistent profits due to high
promotion expenses
• Growth: Rapid market acceptance and increasing profits; firms must
trade-off between high market share and high current profit
• Maturity: Slowdown in sales growth, profits level off or decline; firms
consider -
• Modifying the market – new users and segments, new and
increased use, new occasions.
• Modifying product offering – additional features, packaging, etc.
• Modifying the marketing mix – price, promotions, new and
improved service, etc.
• Decline: Sales decline and profits drop; firms consider harvesting –
reduce costs, maintaining – reposition, reinvigorate, or dropping
products/brands
Ansoff Matrix
The concept of PLC can also be used for describing:
- Product Class: steam engines, electric engines, petrol/diesel cars,
electric cars, etc.
- Product Form: PC, Laptop
- Brand: Colgate, Balckberry
No 2 products have the same PLC
Some may have a very short lifecycle overall. While some may have
very long, growth or maturity stages.
Boston Consultancy Group Matrix
THANK YOU