PRODUCT

LIFECYCLE

At some point of time, companies think of new product

development because of changing or demanding environmental
conditions.
The new product development may also be related to the product
life cycle too.
 PRODUCT
LIFECYCLE

Learning
Objectives
At the end of this topic, you will be able
to:
Discuss what is product life cycle.
Describe the stages in product life cycle.
 PRODUCT
LIFECYCLE
Product Life Cycle

Product life cycle is the most common means of describing

the evolution of markets and products.

A product doesn’t get recognition overnight. It goes

through the various stages which is known as Product Life
Cycle.

PLC illustrates the key phases that a product goes through,

right from the point of its envisage to the point of its
removal from the market.
 PRODUCT
LIFECYCLE
Product Life Cycle

Product Life Cycle

100%

90%

80%

70%

60%
Sales

50%

40%

30%

20%

10%

0%
Introduction Growth Maturity Decline

Stages
 PRODUCT
LIFECYCLE
Product Life Cycle

Introduction Stage

◊ PLC starts from the ‘Commercialisation’ stage of the

new product
◊ Product awareness and acceptance among
prospective customers are minimal
◊ High promotional costs due to low sales
◊ A major obstacle is poor distribution strategy as
many retailers will not support new product launch
 PRODUCT
LIFECYCLE
Product Life Cycle

Growth Stage

◊ Product makes rapid sales because of cumulative

efforts of promotion, distribution, WOM influence
◊ Sharp rise in profits
◊ Customer satisfaction must be ensured for sustained
growth
 PRODUCT
LIFECYCLE
Product Life Cycle

Marketing Pricing
Stage Sales Competition
Purpose Strategy
Marketer
Development Slow Low To explain product Penetration or
Price Skimming

Growth Heavy Some To reach out to more people Competitive

Levelled To show how product is Competitive or

Maturity Fierce
-out unique Discount

To get rid of outdated Discount or

Decline Low Low – Medium
products Bundling
 PRODUCT
LIFECYCLE

Summary
In this topic, you learnt:
Product life cycle refers to the different phases a product goes through in its
lifecycle.
There are 4 phases in a product life cycle.
They are: Introduction, growth, maturity, and decline.