Product Life Cycle Stages

Product Life Cycle Stages
Every Product has a Limited Life
 A product is believed to go through different

life stages. They are first introduced in the
market & consumers accept the products if
they find them serving their needs. This leads
to the growth of the sales of that product.
Every Product has a Limited Life
 At some time either the need that product was

satisfying ceases or a different solution to the
need emerges. Consumers now stop buying the
product & finally the product ceases to exist.
Product Life Cycle
 When we say that a product has a life cycle we
assert the following things
 Products have a limited life
 Products Sales pass through distinct stages each

posing different challenges, opportunities &
problems to the seller.
Product Life Cycle
 Profits rise & fall at different stages of PLC.
 Products require different marketing, financial,

manufacturing & human resources strategies at
different stages.
PLC Stages
 The product is supposed to go through mainly four
stages
Introduction- Product is launched in the market. Sales &
profits are low.
Growth- Sales & Profits surge as the product finds

acceptability.
Maturity-Market is saturated. Drop in sales & Profits

Product improvement is the need of the hour
Decline- Sales & Profits decline

Product Life Cycle Stages
Significance of Product Life Cycle
Helps in Product Portfolio Planning- Facilitates investment
decisions on products. Facilitates in deciding about entry & exit
of the product.
Facilitates the Marketing Mix
Helps the Companies in working out Strategies & can be a useful

tool to manage customers.
Benefits for the End- consumers

Introduction Stage of PLC- Characteristics
 Sales- Low
 Costs- High costs per customer
 Profits- Negative
 Marketing Objectives- Create Product

awareness & trial
Marketing strategies for Introductory Stage
 High Promotion
 Preferably low price
 Mild Distribution
Growth Stage of PLC- Characteristics
 Sales- rapidly rising
 Costs- Average costs per customer
 Profits- Rising
Growth Stage of PLC- Characteristics
 Marketing Objective- Maximize market share
 Product- Offer extension, service, warranty
 Distribution- intensive distribution
 Promotion- Reduce to take advantage of rising

demand
Marketing Strategies for Growth Stage
 Improve product quality, add new features &

improve product styling
 Enter new market segments

Marketing Strategies for Growth Stage
 The company increases the distribution

channel . It enters new distribution channels.
 Move from product awareness advertising to

product preference advertising.
 Lowers the price to attract next layer- sensitive

buyers
Maturity Stage of PLC- Characteristics
 Sales- Peak
 Costs- low costs per customer
 Profits- high
 Marketing Objectives- Maximize profits while

defending market share
Maturity Stage of PLC- Characteristics
 Products- Diversify brands & models
 Distribution- build more intensive distribution
 Promotion- Increase to encourage brand

switching
Marketing strategies for Maturity Stage
 The strategies in this stage revolve around the
Market, Product & Marketing programme
modifications
Market Modification-
 Expand the no. of brand users
 Convert the non users
 Enter new market segments
 Attract the competitor’s customers
 Have the consumers use products on more occasions
Marketing strategies for Maturity Stage
Product Modification
 Quality improvement- Aims at improving the
functional performance of the product.
 Feature improvement- Aims at adding new

features such as size, weight, material,
accessories etc.
 Style improvement- Aims at esthetics

improvement of the product.
Decline Stage of PLC- Characteristics
 Sales- Declining
 Costs- low cost per customer
 Profits – declining
Decline Stage of PLC- Strategies
 Marketing Objectives- Reduce expenditure & milk

the brand
 Product- phase out the weak products
 Distribution- Selective, phase out unprofitable

outlets
 Promotion- reduce to minimum level

Marketing strategies for Decline Stage
 Cut down Investments
 Identifying weak products
 Harvesting

Product Life Cycle Stages

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Product Life Cycle Stages

Every Product has a Limited Life

 A product is believed to go through different

 At some time either the need that product was

 Products have a limited life

 Products Sales pass through distinct stages each

 Profits rise & fall at different stages of PLC.

 Products require different marketing, financial,

Growth- Sales & Profits surge as the product finds

Maturity-Market is saturated. Drop in sales & Profits

Decline- Sales & Profits decline

Facilitates the Marketing Mix

Helps the Companies in working out Strategies & can be a useful

Benefits for the End- consumers

 Costs- High costs per customer

 Marketing Objectives- Create Product

 Preferably low price

 Sales- rapidly rising

 Costs- Average costs per customer

 Product- Offer extension, service, warranty

 Distribution- intensive distribution

 Promotion- Reduce to take advantage of rising

 Improve product quality, add new features &

 Enter new market segments

 The company increases the distribution

 Move from product awareness advertising to

 Lowers the price to attract next layer- sensitive

 Costs- low costs per customer

 Marketing Objectives- Maximize profits while

 Products- Diversify brands & models

 Distribution- build more intensive distribution

 Promotion- Increase to encourage brand

 Feature improvement- Aims at adding new

 Style improvement- Aims at esthetics

 Costs- low cost per customer

 Marketing Objectives- Reduce expenditure & milk

 Product- phase out the weak products

 Distribution- Selective, phase out unprofitable

 Promotion- reduce to minimum level

 Identifying weak products

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