• PRODUCT LIFE CYCLE
• STAGES OF PLC-
• EXTENDING PRODUCT LIFE CYCLE
3. PRODUCT LIFE CYCLE
• Like human beings, products too have a life span.
• Product goes through varied stages from inception to decline.
• Death of a product refers to when it stops generating sales and
• In each stage there are distinct opportunities and problems with
respect to marketing strategy and profit potential.
• Product life cycle(PLC) deals with the life of a product in the
market with respect to business or commercial costs and sales
5. PRODUCT LIFE CYCLE
• Products require different marketing, financing, manufacturing,
purchasing and personnel strategies in the different stages of
their life cycle.
• The PLC concept provides a useful framework for developing
effective marketing strategies in different stages of the Product
• “The product life cycle is an attempt to recognize distinct
stages in the sales history of the product.”
(1) Product have a limited life and thus have a life cycle.
(2) Product sales passes through different stages,
challenges, opportunities and problem to seller.
(3) Product require different Marketing , Financing,
Manufacturing, Purchasing and Human recourses strategies
in each stages.
7. STAGES OF PLC
9. • Product conceptualized to meet consumer
• There are six parts of this stage-
-Exploration of idea
Cost- High cost per customer
Profit - Negative
Product- offers basic product
Object -Create product awareness and trial
Price –cost plus formula
Advertising- build product awareness
Promotion- heavy to entice product trial
12. • Product is already present in the
• Customers are satisfied with the
• By spending money on product
development position can be captured
in the market.
13. Sales- Rapidly rising
Cost- Average cost per unit
Profit – Rising profit
Customers –Early adopters and new
Product- Offers extension, warranty and other services
Object –Maximize market share
Price –To Penetrate market
Advertising- Build product awareness and interest in market
Promotion-Moderate to take advantage of demand
15. • It posses strong challenges to
• New models and methods are adopted
to promote sales.
• Buyers continue to grow.
• Promotional efforts may lengthen the
span of stage.(not permanent solution)
16. Sales- Peak
Cost- Low cost per customer
Profit - High
Customers –Middle majority
Competitors- Stable/begin to decline
Product- Diversify brand and model
Object -Maximize profits while defending market share
Price – To match or beat customer
Distribution- More intensive
Advertising- Stress brand differences and benefits
Promotion- Increase to encourage brand switching
18. • Profit margin touch a low level.
• Customer start using new products.
• Reasons of decline-
-Change in tastes
-Adoption of substitute products.
19. Sales- Declining
Cost- Low cost per customer
Profit - Declining
Customers - Laggards
Product- Phase out weak items
Object -Reduce expenditures and milk the brand
Price – Cut price
Distribution- Selective: phase out unprofitable outlets
Advertising- Reduce to level needed to retain hard-core loyal customers
Promotion- Reduce to minimum level