A Brief Introduction to PLC

1. Product Life Cycle
By – M.M.Killedar

2. Product Life Cycle

3. Facts about Life Cycles
•
•
•
•
Products have a limited life.
Product sales pass through distinct stages.
Profits rise and fall at different stages.
Products require different marketing,
financial, manufacturing, purchasing, and
human resource strategies in each stage.

4. Common PLC Patterns

5. Style, Fashion, and Fad Life Cycles

6. Introduction stage – Strategies
The Pioneer Advantage
•
•
•
•
•
•
Objective – Create Product awareness & trial
Product – Offer a basic product
Price – Charge cost-plus
Distribution – Build selective distribution
Ads – Product knowledge among early adopters
Sales Promotion – Use heavy sales promotion to
attract new customers

7. Growth stage – Strategies
• Objective – Maximize market share
• Product – Offer product extensions, service &
warranty
• Price – Market Penetration
• Distribution – Intensive distribution
• Ads – Build interest in the mass market
• Sales Promotion – Reduce to take advantage
of heavy consumer demand

8. Maturity stage – Strategies
•
•
•
•
•
•
Objective – Maximize Profit & defend Mkt share
Product – Diversify brands & items models
Price – Price to match competitors
Distribution – More Intensive distribution
Ads – Stress brand differences & benefits
Sales Promotion – Increase to encourage brand
switching

9. Decline stage – Strategies
•
•
•
•
•
•
Objective – Reduce expense & milk the brand
Product – Phase out weak products
Price – cut price
Distribution – Go selective; delete loss-outlets
Ads – only for loyal, less
Sales Promotion – Reduce to Minimal level