1. PRODUCT LIFE CYCLE Santosh Kumar Gaur MBA 1st Year. Roll No.36

2. Flow of Presentation Introduction Stages Explanation Utility of PLC Marketing strategy Operation level Limitation

3. A product passes through certain distinct stages during its life these stages are called product life cycle. Normally it is represented as a sales curve spanning the product’s course from introduction to its exit. Introduction

5. Growth Stage

6. Maturity Stage

8. The duration of the stage depends on nature of product ,its price, its technological newness and consumer’s view.

9. crucial decision in this stage is pricing strategy and it decided on (1) market skimming and (2) market penetration. INTRODUCTION STAGE

11. Incorrectly Positioned.

12. Launched at Wrong Time.

13. Price too High.

14. Poor Advertised.CAUSES OF FAILURE AT INTRODUCTION STAGE

16. Customer- Early adopter of the product

18. The slowdown in sales growth results in many producers with many product to sell; prices becomes low; weak competitors start dropping out product.

19. Company looks for new users and market segment. Maturity Stage

21. Some firms withdraw from the market, Those remaining reduce products offer, It might be slow or Rapid. Decline Stage

22. Characteristics of four distinct stage

23. Sales and Profits Over the Product’s Life From Introduction to Decline Sales and Profits ($) Sales Profits Time Product Develop- ment Introduction Growth Maturity Decline Losses/ Investments ($)

24. Utility of PLC Concept PLC concept lies in the fact that each stage is characterized by a typical market behavior and lends itself to the application of certain specific marketing strategy. Understand and managing it effectively can help in prolonging the profitable phase of product’s lifespan.

26. Facilitate Prolonging the Profitable Stage

27. Facilitate Investment Decision on the Product

28. Facilitate Choice of Appropriate Entry Strategies

29. Facilitate choice of right time to exit

30. Provides useful clues to managing customers Presented by Upendra Kumar MBA 1stSem Roll-48

32. Helps in issues on pricing, channel and promotion.

33. It provides valuable lead time.

35. It helps to assign investment to the right products and avoid committing heavy resources on wrong product It helps to formulate corporate strategy as well as marketing strategy in an effective manner. Facilitate Investment Decision on Product

36. Facilitate choice of appropriate entry strategy Entry as Innovator Entry as Early follower Entry as Segmenter Entry as me-too PLC facilitate choice of the right time to exit.

38. Used to make stronger ‘company-consumer relationship’

39. It also used for augmenting the product, improving service support and modifying the pricing approaches.Provides useful clues to managing customers

41. The Product sub-category level

42. The Brand level PLC operates at three level

44. Thank You

45. ?