Downloaded 16 times
Uploaded bySurendher Emrose
Product life cycle
The document discusses the product life cycle (PLC) which consists of four stages: introduction, growth, maturity, and decline. Each stage presents unique challenges and requires different strategies for marketing, sales, and distribution, exemplified by products like 3D televisions in the introduction phase and laptops in the maturity phase. As customer preferences evolve, products may decline, necessitating a responsive approach to sustain market relevance and profitability.
More Related Content
Similar to Product life cycle
Product life cycle
- 1.
- 2. A Company’spositioning and differentiation strategy must change as the product, market, and competitors change over the Product Life Cycle(PLC). To say that a product has a life cycle is to assert four things. Products have a limited life Product sales pass through different stages with challenges/problems to the seller Profits rise and fall at different stages of the PLC Products require different marketing, financial , manufacturing, purchasing and human resource strategies in each life cycle Introduction
- 3. Common Product LifeCurves Sale s Sales Sales l Time (a) Growth-Decline plateau Time (b) Cycle-Recycle Pattern Time (c) Innovative Maturity or Scalloped Pattern
- 4. Introduction Stage The introductorystage is Occurs when product first enters the market place. It is viewed as fairly risky and quite expensive because large amounts of money is spent on advertising and other tools of marketing communications to create consumer awareness in sufficiently large numbers, and encourage trial. 3D Televisions available for the home, providing a good example of a product that is in the Introduction Stage.
- 5. Introduction Stage ofthe PLC Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers
- 6. Growth Stage The growthstage of life cycle is characterised by a sharp rise in sales. Only a small percentage of new products introduced survive to reach the growth stage. More Competitors enters into the marketplace Product improvement – adding flavors, features. Tablet PCs: As this product passes through the Growth stage of the cycle and more competitors start to come into a market that really developed after the launch of Apple’s iPad.
- 7. Growth Stage ofthe PLC Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market
- 8. Introduction DeclineGrowth Maturity Time (d)Classical Life Cycle Pattern Sales Profits Loss Common Product Life Curves
- 9. Maturity Stage Most productsafter surviving competitive battles, winning customer confidence and successful through growth phase enter their maturity stage. The sales plateau, and this flattening of sales usually lasts for some time because most products in the category have reached their maturity stage, and there is stability in terms of demand, technology, and competition. Attracting new customers is a challenge Eg:Laptops
- 10. Maturity Stage ofthe PLC Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per customer High profitsMaximize profit while defending market share Diversify brand and models Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits
- 11. Decline Stage Decline stagesets in when customer preferences change due to the availability of technologically superior products and consumers’ shift in values, beliefs, and tastes to products offering more value. Sales and Profit drops Eg: Cassette tape
- 12.