Product Life Cycle Presented By Varsha Lamb Trupti Joshi Prajakta Vaikos

Introduction The Product Life Cycle refers to the succession of stages a product goes through. The product life cycle goes through many phases and involves many professional disciplines and requires many skills, tools and processes. Product life cycle (PLC) is to do with the life of a product in the market with respect to business/commercial costs and sales measures.product life cycle

Stages of PLC Product Development Introduction Growth Maturity Decline

Product Development Product Development is the incubation stage of PLC. There are no sales & firm prepares to introduce the product. As product progress through its life cycle, changes in Marketing Mix usually in order to adjust to evolving challenges & opportunities. To create successful new products, the company must: understand it’s customers, markets and competitors develop products that deliver superior value to costumers

Graph of PLC stages Time Product Develop- ment Introduction Profits Sales GrowthMaturityDecline Losses/ Investments ($) Sales and Profits ($)

Introduction Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial 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

Growth Stage of the 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

Maturity Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per customer High profits Maximize profit while defending market share Maximize 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

Decline Stage of the PLC Sales Costs Profits Marketing Objectives Product Price Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal customers Reduce to level needed to retain hard-core loyal customers

Products at PLC stages IntroductionGrowthMaturityDecline Third Gen Mobile phones Portable DVD players Personal Computers Type writers E-conferencing FaxesHandwritten letters All in one racing skin suits Breathable synthetic fabrics Cotton ShirtsShell suits Iris based personal I- cards Smart cardsCredit cardsCheque books

Utility of PLC The study of PLC is very useful in marketing & also for preparing & implementing marketing strategies & programmes. Its utility is as follows: 1) Life of a product is limited. 2) Estimation of Profits. 3) Marketing of program.

Strategies During PLC The management tries to make product survive in market for a long period hence it uses various strategies as below: 1) At introductory stage it should involve heavy advertising, extensive selling etc., 2) At growth stage marketing strategy may shift to price appeals & product improvement. 3) At decline stage the utility of product may be increased, new uses may be suggested etc.,

Factors Affecting PLC Rate of Technical change. Rate of Man at acceptance. Ease of competitive Entry. Risk bearing capacity. Economic & managerial forces. Protection of patents. Goodwill of the Enterprise.