PRODUCT LIFE CYCLE

PRESENTED BY : ABHINAV MOHAN HARSH RAUTILA NALIN GUPTA SATYARTH PANDEY

The PLC concept applies differently in each case. a product form. The PLC concept can described a product class. • • • • . and fads. Not all the product follows the product life cycle.PRODUCT LIFE CYLE • The course of a products sales and profits over its lifetime is called the Product Life Cycle. The product life cycle is based upon the biological life cycle The PLC concept can be applied to what are known as styles. fashions. or a brand.

STAGES OF PLC • Introduction stage Growth stage Maturity stage Decline stage • • • .

• Sales growth tends to be slow at this stage Cost per customer is high Negative profits Competitors are few The marketing objective is to create product awareness Stages Of Product Life Cycle • • • • • Introduction stage Growth stage Maturity stage Decline stage • • • .

Promotion . Adertising –Advertising is aimed to be high to build product awareness • • • • .one or few products.Promotion is aimed at building brand awareness.Distribution is selective and scattered as the firm commences implementation of the distribution plan. The introductory promotion also is intended to convince potential resellers to carry the product.Marketing strategies (Introduction stage) • Product . Samples or trial incentives may be directed toward the customers. relatively undifferentiated Price – use cost plus basis to set a price Distribution .

Examples • Pepsi Tropicana Persona Postpaid (Telenor) Clear Shampoo • • .

• Rapidly rising sales Unit manufacturing cost declines Rising profits The marketing objective is to maximize market share • Stage of product life cycle • • • • Introduction stage Growth stage Maturity stage Decline stage • • .

Promotion.Reduce to take advantage of heavy consumer demand. improvement of product quality.Distribution becomes more intensive.New product features and packaging options.Build brand awareness in the mass market • • • • . Price – Price to penetrate the market Distribution . Advertising.Marketing strategies (Growth stage) • Product .

Examples • Warid Mountain dew Lays • • .

• Sales are at peak Cost per customer low Profits are high The marketing objective is to maintain or extend the market share. • Stage of product life cycle • • • • Introduction stage Growth stage Maturity stage Decline stage • • .

Marketing strategies (maturity stage) • Product –Either modifying the product or diversify the brand. Price .Possible price reductions in response to competition while avoiding a price war.Incentives to get competitors' customers to switch. Distribution –Build more intensive distribution. Promotion . • • • .

Examples • Head & shoulder Mobilink Lux Pepsi • • • .

• Sales started declining Cost per customer still at low Profits are at decline The marketing objective is to reduce the expenditure • Stage of product life cycle • • • • Introduction stage Growth stage Maturity stage Decline stage • • .

Price . Channels that no longer are profitable are phased out.Distribution becomes more selective.Prices may be lowered to liquidate inventory of discontinued products. Promotion .Expenditures are lower and aimed at reinforcing the brand image for continued products.Marketing strategies (Decline stage) • Product . • • • . Distribution .The number of products in the product line may be reduced.

Examples • Paktel Gsm Pepsi Twist Igloo Ice Cream Yummy Ice Cream • • • .

Conclusion • The PLC concept can be applied by marketers as a useful framework for describing how products and markets work. But using the PLC concept for forecasting product performance or for developing marketing strategies presents some practical problems. the length of each stage.. it is difficult to forecast the sales level at each PLC stage. In practice. and the shape of the PLC curve. .

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