PRODUCT LIFE CYCLE Santosh Kumar Gaur MBA 1st Year. Roll No.36
Flow of Presentation Introduction Stages Explanation Utility of PLC Marketing strategy Operation level Limitation
A product passes through certain distinct stages during its life these stages are called product life cycle. Normally it is represented as a sales curve spanning the product’s course from introduction to its exit. Introduction
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.
Sales and Profits Over the Product’s Life From Introduction to Decline Sales and Profits ($) Sales Profits Time Product Develop- ment Introduction Growth Maturity Decline Losses/ Investments ($)
Utility of PLC Concept 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.
How PLC Concept help in formulating Marketing Strategies
Used to predict when competitors are likely to enter the scene, in what area they would intimate the product.
Finding out new users for the product Finding out new uses for the product Popularizing more frequent use of the product Making the product more distinctive to the consumers Adding real and/or psychological value to the product. Facilitate Prolonging the Profitable Phase
It helps to assign investment to the right products and avoid committing heavy resources on wrong product It helps to formulate corporate strategy as well as marketing strategy in an effective manner. Facilitate Investment Decision on Product
Facilitate choice of appropriate entry strategy Entry as Innovator Entry as Early follower Entry as Segmenter Entry as me-too PLC facilitate choice of the right time to exit.