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    Product Life Cycle

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    Rohit Semlani
    Products pass through distinct stages in their life cycle, with sales and profits changing at each stage. The stages are introduction, growth, maturity, and decline. Strategies must be tailored to each stage, such as using rapid or slow skimming in introduction, price cuts or new models in growth, product modifications or promotions in maturity, and reducing unprofitable aspects in decline. However, not all products go through every stage, and increased marketing can alter a product's life cycle curve.

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    Product Life Cycle

    Uploaded by

    Rohit Semlani
    36 views18 pages
    Products pass through distinct stages in their life cycle, with sales and profits changing at each stage. The stages are introduction, growth, maturity, and decline. Strategies must be tailored to each stage, such as using rapid or slow skimming in introduction, price cuts or new models in growth, product modifications or promotions in maturity, and reducing unprofitable aspects in decline. However, not all products go through every stage, and increased marketing can alter a product's life cycle curve.

    Original Description:

    product life cycle

    Original Title

    Plc

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    Products pass through distinct stages in their life cycle, with sales and profits changing at each stage. The stages are introduction, growth, maturity, and decline. Strategies must be tailored to each stage, such as using rapid or slow skimming in introduction, price cuts or new models in growth, product modifications or promotions in maturity, and reducing unprofitable aspects in decline. However, not all products go through every stage, and increased marketing can alter a product's life cycle curve.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    36 views18 pages

    Product Life Cycle

    Uploaded by

    Rohit Semlani
    Products pass through distinct stages in their life cycle, with sales and profits changing at each stage. The stages are introduction, growth, maturity, and decline. Strategies must be tailored to each stage, such as using rapid or slow skimming in introduction, price cuts or new models in growth, product modifications or promotions in maturity, and reducing unprofitable aspects in decline. However, not all products go through every stage, and increased marketing can alter a product's life cycle curve.

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    You are on page 1of 18

    Product life cycle

    PLC

    Products have a limited life


    Product sales pass through distinct
    stages
    Profits rise and fall at different stages
    of the PLC
    Product require different strategies in
    each stage of the PLC

    Sales

    Stage of PLC

    Product Life Cycle

    Growth

    Maturity
    Decline

    Introduction

    Time

    Product development.
    Introduction.
    Growth.
    Maturity.
    Decline.

    Product may not pass through all the


    five stages.
    A product may be developed,introduced
    & then withdrawn from the market.
    A relaunched product will have new life
    cycle.

    Introduction stage.

    At this stage sales is low, promotional


    expenditure is high ,profit is negligible
    or product may not earn any profit at
    all.

    Strategies for Introduction


    stage.

    Rapid Skimming.
    Slow Skimming.
    Rapid Penetration.
    Slow Penetration.

    Rapid Skimming

    Marketer launches the product at


    higher price & higher promotional level
    to skim the market rapidly.
    The strategy is more successful when a
    large part of potential market is
    unaware of the product.
    The firm tries to build brand
    preferences.

    Slow Skimming

    In this product is launched at higher


    price & at low promotional level.
    This strategy is feasible when market is
    aware of the product,the market size is
    limited,competition is not intense&
    customers are ready to pay higher
    price.

    10

    Rapid Penetration.

    In this product is launched at at lower


    price with heavy promotion.
    This strategy is applied when market is
    large in size ,customer are unaware of
    the product,they are more price
    sensitive,competition is high.

    11

    Slow Penetration.

    In this product is launched at lower


    price & low level of promotion.

    12

    Growth Stage.

    Rapid Growth in sales.


    Rise in profits.
    Competition may increase.
    Unit manufacturing cost falls.

    13

    Strategies for growth stage.

    Price cut to attract price sensitive


    customer.
    Introduction of more product features
    and models.
    Introduce new marketing channels
    Enter new markets.

    14

    Maturity.

    Stagnation of sales that is sales growth


    rate slows down.
    The reason could be introduction of
    new product/substitutes,increase
    competition.

    15

    Strategies for Maturity stage.

    Product Modification.
    Increase advertising and sales
    promotion
    Attractive promotional scheme.
    Exit from unprofitable market areas.
    Invest more in R & D
    New packaging and product re-launch

    16

    Decline Stage.

    During decline stage of PLC sales of a


    product falls rapidly.
    The reson could be technological
    advances,increase in competition,shift's
    in consumer's taste & preferences.

    17

    Strategy for decline stage.

    Reduce unprofitable products from


    product line
    Cut down promotional budgets and
    prices
    Cut down unprofitable distributors
    Reinvent the brand to make it more
    appealing.
    Divest the business through disposal of
    asset.

    18

    Limitations of PLC Concept

    Sales of some products rise or decline


    quickly at the same rate.

    Increase in marketing activities may alter


    the shape of PLC curve

    PLC outlines the phases but does not give


    any indication to their duration.

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