This document outlines the product life cycle (PLC) model, including its key stages of introduction, growth, maturity, and decline. It provides details on how products, styles, fashions, and fads may progress differently through the PLC. Marketing strategies are discussed for each stage, with an emphasis on adapting strategies based on where a product is in its life cycle. Examples are given of products that have successfully navigated the PLC stages as well as those that have declined.
2. CONTENTS
1. Definition
2. Stages of Product life cycle
3. Introduction Stage
4. Growth Stage
5. Maturity Stage
6. Decline Stage
7. PLC for Stylish Products
8. PLC for Fashion Products
9. PLC for Fad Products
10. Features of PLC
11. Factors Affecting PLC
12. Importance of PLC
13. Marketing Strategies During PLC
14. Examples of Some Products.
3. Definition :
“The Stages through which individual
products develop over a period of time
is known as product life cycle(PLC)”
If we plot a graph of sales volume
versus time for a product, generally,
the PLC represents a bell-shaped or
s-shaped curve.
6. INTRODUCTION STAGE
First stage
The product is completely new.
The product may open up entirely new
market or may replace existing
product or significantly broadens the
market for existing product.
7. Characteristics of Introduction
Stage
Low and slow sales.
High Product Price.
Heavy Promotional expenses.
Lack of knowledge.
Low Profits.
Narrow Product Lines.
8. GROWTH STAGE
Second Stage.
Here sales begin to rise.
Sales as well as profit increases at an
accelerated rate.
Advertising and Sales promotion are
key factors.
9. Characteristics of Growth
Stage
Rapid increase in sales.
Product improvements.
Increase in competition.
Increase in profits.
Reduction in Price.
Strengthening the distribution channel.
10. MATURITY STAGE
Market becomes saturated.
Growth and churn are steady.
Once in this stage, the goal is to
extend the maturity stage as possible
so you don’t end up entering into
decline stage prematurely.
11. Characteristics of Maturity
Stage
Sales increases at decreasing rate.
Normal promotional expenses.
Uniform and lower prices.
Product modifications.
Profit margin decreases.
12. DECLINE STAGE
This is the final stage.
Actual sales begins to fall down due to
impact of new product competition and
changing consumer behavior.
Sales and profit fall down quickly.
13. Characteristics of Decline
Stage
Rapid decrease in sales
Further decrease in prices.
No promotional expense.
Suspension of product work.
14. PLC for Stylish Products
•According to Kotler, “A style is a basic
and distinctive mode of expression”.
•E.g. Furniture, Automobile, Clothing,
Shoes.
•The current style for mobile phone is
touch screen and this style will last until
a new technology style appears.
•So the shape of a style life cycle is like
a wave, as one style fades out, another
appears.
15. PLC for Fashion Products
•A fashion refers to a currently
accepted style in a specific field.
•It is a current trend which can have
long or short life.
•Fashion tend to grow slowly,
remain popular for a while, then
decline slowly.
•E.g. Readymade garments, purses,
bangles, shoes.
16. PLC for Fad Products
•Fads are fashion that enter quickly with great zeal,
peak early and decline very quickly.
• In fad product is around just for a short period of
time.
•E.g. , Garments, caps, hair style, music albums,
films and other fashion products.
17. Features of PLC
Every product has life cycle as every
human being has.
Product cycle starts from Introduction
stage and ceases after passing from
growth and maturity stages.
profits of any firm grows rapidly in the
stage of growth and starts declining
due to competitive conditions at the
stage of maturity.
No two products have identical life
cycle.
18. CONT’D
The duration of each stage is different
for different products.
It is not necessary that all products go
through all stages, some fail at the
initial stage, other may reach maturity
stage after a long time.
PLC provides a useful framework for
developing effective marketing
strategies in different stages of PLC.
19. Factors affecting a PLC
Rate of technological change.
Rate of market acceptance.
Competitor’s entry.
Economic and managerial forces.
Risk bearing capacity.
Government policies.
20. Importance of PLC
Helpful in sales forecasting
Helpful as a predictive tool.
Helpful as a planning tool.
Helpful as a control tool.
Helpful in framing marketing
programme.
Helpful in price determination.
Development of new product.
Comparison of different products.
21. Marketing strategies during
PLC
Strategies in Introduction stage
I. Make proper advertising before the product
is launched in the market.
II. Shorten the period of introduction as far as
possible.
III. Heavy advertising and promotional
expenses(attractive gifts)
IV. Selective distribution and attractive
discounts, to dealers.
V. If product is technical – adopt skimming
pricing, if product is simple- penetration
pricing policy.
22. Marketing strategies during
PLC
Strategies in Growth stage
I. Improve the product quality.
II. Add new product features.
III. Enter into new market areas.
IV. Reduce the price to attract more number of buyers.
V. Create brand image of the product through
promotional activities.
VI. Strengthen the distribution channels by increasing
the number of retailers.
VII. New version, in different sizes and price range are
introduced to cater the requirements of different
types of buyers.
VIII. Emphasis on customer satisfaction.
23. Marketing strategies during
PLC
Strategies in Maturity stage
I. Improve quality of product and introduce some
new models.
II. Give proper attention to increase the usage
among the current customers and also pursue
some uses of the product.
III. Try to convert non-users into users of the
product.
IV. Introduce new packaging and wrapper change
policy.
V. Lower the costs to attract more consumers.
VI. Give emphasis on advertisements and
promotional activities.
24. Marketing strategies during
PLC
Strategies in Decline stage
I. Improve the product in the functional sense.
II. Review the marketing and production program.
III. Cut all costs at the minimum level.
IV. Economy packs or models may be introduced
to revive the market.
V. Adopt selective promotion of the product to
reduce the cost.
VI. R&D efforts are increased to innovate the new
product.
VII. Sales incentive schemes are introduced to get
dealer’s support.
25. Examples of PLC
The home entertainment industry is
filled with examples at every stage of
the product life cycle. For example,
videocassettes are gone from the
shelves. DVDs are in the decline
stage, and flat-screen smart TVs are
in the mature phase.
26. Examples of PLC
Established products like Starbucks
coffee and Apple iPhones are examples
of good product life cycle management.
Maggi has also maintained itelf through
the stages of PLC.
