Product Life Cycle is the stage wise representation of life of a product in the market. The PLC includes various strategies at each step.

3.  The product is in its
introductory stage here, there
may not be ready market for the
product.
 Sales are slow and profits seems
a remote possibility.
 Demand has to be created and
developed; and customers have
to be promoted to try out the
product.
 Promotional expenses are
highest.
 Prices are high.
 A product is a basic product at
this stage.
 Selective distribution is
required.
 Product awareness advertising.
Strategies –
 Pricing strategies to be adopted
from the following-
 Market skimming- high pricing
 Market Penetration- Low pricing
 Proper development of the
market
 High Promotion
Examples –
 4G applications , ITC scissors
etc.

5.  Demand for the product increases
and the size of the market grows.
 Sales and Profit goes up.
 Early adopters like the product
and additional consumers buy the
product.
 Competition grows and therefore
new features and distribution
needs are to be expanded.
 Price remain high or dip slowly.
 Firm uses all the 4P’s to change its
prior marketing strategy.
Strategies –
 New additional features
 Improved quality or style
 Adds new models & flanker
products(different size, flavors
etc.) to protect the main product.
 Enters new market segment.
 Enters new distribution channels.
 Shifts from product awareness
advertising to product preference
advertising.
 Lowers price to attract new layers
of price sensitive buyers.
Examples –
 3G applications, HD in Dish TVs,
etc.

6.  Demands tends to reach
saturation point.
 Enough supply from the
competitors.
 Price competition becomes
more pronounced.
 Pioneers tries to distinguish
itself from others.
 It has three phase of its own-
 Maturity Growth Stage
 Maturity Stable Stage
 Maturity Decaying Stage
Strategies –
 Market modification.
 Product modification.
 Marketing mix modification.
 New uses of the product.
 New user segment.
 Initiate product differentiation.
 Add new product lines.
 Stimulates the non-users and
life users.
 Increase the amount of each
uses.
 Expanding distribution.
Examples –
 Horlicks, Scooty, Classmate
notebooks etc.

7.  Demand for the product shrinks.
 Advanced products becomes
available in the market.
 Market becomes pathetic for the
product.
 Prices and margins get depressed.
 Total sales and profit diminishes.
 Linking with some premium
product to stretch the life if the
declining product.
 Many firms withdraw at this stage.
 Channels of distribution are
reduced and promotional
expenses are cut.
 Products taxes not only to the cost
but also to the efforts expanded by
the firm on that particular
product.
Strategies–
 Increase in firms investment to
strengthen its competitive
position.
 Maintain the firms investment till
uncertainties dissolves.
 Decrease the investment
selectively – dropping the non-
profitable segments.
 Milk or harvest firms investment
to recover cost quickly.
 Divesting or selling off its assets as
profitably as possible.
Examples –
 Keo Karpin Hair Oil, Dettol soaps,
few cosmetics etc.