PRODUCT LIFE CYCLE

A company’s positioning and differentiation strategies

must change as the product, market, and competitors

change over time.Here I will describe the concept of the

product life cycle(PLC)and the normal changes as the

product passes through each life cycle stage.

PRODUCT LIFE CYCLE MARKETINGSTRTEGIES

 

 

MAINLY THE PRODUCT LIFE CYCLE INCLUDES

1. Product have a limited life.

2. Product sales pass through distinct stages,each posing

different challenges, opportunities, and problems to the seller.

3. Profits rise and fall at different stages of the product life cycle.

4. Product require different marketing, financial, manufacturing,

purchasing, and human resource strategies in each life cycle

stage.

PRODUCT LIFE CYCLE

Most product life-cycle curve are portrayed as bell shaped.

The curve is typically divided into four stages:

Introduction

Growth

Maturity

Decline

Introduction Growth Maturity Decline

Profits

SALES AND PROFIT LIFE CYCLES

Sales

GROWTH-SLUMP-MATURITY PATTERN

INNOVATIVE PRODUCT

Primary

CYCLE-RECYCLE PATTERN

Cycle Recycle

PHARMACEUTICAL PRODUCT

SCALLOPED PATTERNPRODUCT CHARACTERISTICS, USES, OR USERS

SALES,EXPENSES & PROFITS CONDITION AT ALL THE STAGES

 

SALES EXPENSES PROFITS

1st

LOW HIGH LOW

2nd

VERY HIGH RELATIVALY LOW HIGH

3rd

MAXIMAM LESS MAXIMAM

4th

REDUCTION LEAST REDUCTION

STAGE

STAGE

STAGE

STAGE

PRODUCT LIFE CYCLESTAGES

Introduction: A period of slow sales growth as the product

is introduced in the market.Profits are non-existent

because of the heavy expenses incurred with

product introduction.

Growth: A period of rapid market acceptance and

substantial profit improvement.

Maturity: A period of a slow down in sales growth

because the product has achieved acceptance by most

potential buyers. Profits stabilize or decline because of

increased competition.

Decline: the period when sales show a downward drift and

profit erode

FASHION

A fashion is a currently accepted or popular style in a given field.The length of a fashion cycle is hard to

predict.Fashion end because they represent a purchase compromise.

FADSFads are fashion that come quickly into public view, are

adopted with great zeal, peak early, and decline very fast.Their acceptance cycle is short, and they tend to attract

only a limited following of those who are searching for excitement or want to distinguish themselves from other.

MARKETING STRATEGIES

INTRODUCTION STAGE

REPOSITIONING

PRODUCT DIFFERENTIATION

PRICE

GROWTH STAGEDuring this stage, the firm uses several strategies to sustain rapid market growth

It improves product quality and adds new products features and improved styling.

It adds new models and flanker product(I.e.,products of different sizes)

It enters new market segment.

It increase its distribution coverage and enters new distribution channels.

It lowers prices to attract the next layer of price-sensitive buyers.

MATURITY STAGE

PRICES

DISTRIBUTION

ADVERTISING

SALES PROMOTION

PERSONAL SELLEING

SERVICES

DECLINE STAGE

Increasing the firm’s investment (to dominate the market or strengthen its competitive position).

Maintaining the firm’s investment level until the uncertainty about the industry are resolved.

Decreasing the firm’s investment level selectivity, by dropping unprofitable customer groups,

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