Product Life Cycle

By – M.M.Killedar

Product Life Cycle

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.

Common PLC Patterns

Style, Fashion, and Fad Life Cycles

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

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

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

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