PRODUCT

LIFE CYCLE
BY: NIKHITA MOTWANI
(MBA M.S SEM II )
(SECTION B) .
WHAT IS PRODUCT LIFE
CYCLE (PLC)
• A product life cycle is the amount of time a
product goes from being introduced into the
market until it's taken off the shelves.
• There are four stages in a product's life cycle
—introduction, growth, maturity, and decline.
STAGES OF Product life cycle

• INTRODUCTION: The introduction phase is the first time customers are

introduced to the new product. A company must generally include a
substantial investment in advertising and a marketing campaign focused on
making consumers aware of the product and its benefits.
• GROWTH: As the product takes on
increased competition as other companies
emulate its success, the product may lose
market share and begin its decline. Product
sales begin to drop due to market saturation
and alternative products, and the company may
choose to not pursue additional marketing
efforts as customers may already
have determined whether they are loyal to the
company's products or not.
•MATURITY : The maturity stage of the
product life cycle is the most profitable stage,
the time when the costs of producing and
marketing decline. With the market saturated
with the product, competition now higher than
at other stages, and profit margins starting to
shrink, some analysts refer to the maturity stage
as when sales volume is "maxed out".
•DECLINE : As the product takes on increased
competition as other companies emulate its success,
the product may lose market share and begin its
decline. Product sales begin to drop due to market
saturation and alternative products, and the
company may choose to not pursue additional
marketing efforts as customers may already have
determined whether they are loyal to the company's
products or not.
 EXTENSION
STRATEGY
•An extension strategy is usually introduced between
the maturity and saturation stages of the product life
cycle, before a real decline takes place. The aim is to
continue to maintain a steady rate of revenue from a
product.

•SOME EXTENSION STRATEGIES INCLUDE -

• Reducing the price of the product.
• Product Differentiation
• Product Upgradation
• Rebranding the product
CASE STUDY OF USB FLASH
DRIVES

• INTRODUCTION STAGE : USB

flash drives were introduced in the late
1990s as a portable storage solution,
offering users a compact and
convenient way to store and transfer
digital files. Initially targeted at
professionals and tech enthusiasts, USB
flash drives replaced floppy disks and
CDs as the preferred method of data
storage and sharing.
Growth Stage:
• As USB flash drives gained traction, they
entered the growth stage. Advancements in
technology led to increased storage
capacities, faster data transfer speeds, and
more compact designs. The affordability and
versatility of USB flash drives appealed to a
broad range of consumers, including
students, business professionals, and home
users, driving rapid adoption and sales
growth.
Maturity Stage:
• With USB flash drives firmly established as a ubiquitous
storage accessory, they reached maturity. The market
became saturated with a wide variety of USB flash drive
brands, capacities, and designs. USB flash drives
became standard tools for storing documents, photos,
music, and software applications. During this stage,
manufacturers focused on product differentiation
through features such as encryption, durability, and
compatibility with different devices.
Decline Stage:
•Despite their widespread use, USB flash
drives eventually entered the decline stage as
sales growth slowed down. Factors
contributing to this decline included the rise
of cloud storage services, which offered
convenient and accessible storage solutions
without the need for physical hardware.
Additionally, advancements in wireless
technology and mobile devices reduced the
reliance on USB flash drives for data
transfer and storage.
• Extension Strategy:
• To extend the product life cycle of USB
flash drives, manufacturers pursued
strategies such as product diversification
and innovation. They introduced USB flash
drives with unique designs, shapes, and
materials to appeal to consumers' aesthetic
preferences. Manufacturers also focused on
specialized USB flash drives with features
such as ruggedness, water resistance, and
biometric security to target specific user
segments such as travelers, outdoor
enthusiasts, and professionals who work in
challenging environments.
THANK-YOU