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Process and Product Life Cycle

The document outlines the Product Life Cycle (PLC), detailing the stages from product development to decline, including characteristics of each phase such as introduction, growth, maturity, and decline. It emphasizes strategies for extending the product lifecycle through diversification, innovation, and rebranding. Each stage is associated with changes in sales, costs, profits, and competition.

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18 views11 pages

Process and Product Life Cycle

The document outlines the Product Life Cycle (PLC), detailing the stages from product development to decline, including characteristics of each phase such as introduction, growth, maturity, and decline. It emphasizes strategies for extending the product lifecycle through diversification, innovation, and rebranding. Each stage is associated with changes in sales, costs, profits, and competition.

Uploaded by

vanshikasehrawat1085
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Process and Product

Life Cycle
By- Akanksha Tiwari
Introduction
 Every product goes through a life cycle from development to
decline
 Each life cycle is different
 Some products have longer lifecycles than others
 Some companies are very successful in extending lifecycles
 A new product passes through a sequence of phases from
introduction to growth , maturity and decline.
 This sequence is known as product life cycle and is associated
with changes in market situation
Characteristics of each product
stage
Product Life Cycle(PLC)
Stages of Product Life Cycle
Product Development Phase
 Begins when the company develop a new- product
idea
 Sales are zero
 Investment cost are high
 Profits are negative
Introduction Phase
 Low sales
 High cost per customer acquired
 Negative profit
 Promotion is aimed at innovators and early adopts are
targeted
 Little competition
 Product branding and quality levels are established
 Distribution is selective until consumers show
acceptance of the product
Growth Phase
 Rapidly rising sales
 Average cost per customers
 Rising profit
 Early adopters are targeted
 Growing competition
 Product quality is maintained and additional
features and support services may be added
 Pricing is maintained as the firm enjoys increasing
demand with little competition
Maturity Phase
 Sales peak
 Low cost per customer because of the new
competition
 High profits
 Middle majority are targeted
 Competition begins to decline
 Promotion emphasizes product differentiation
Decline Phase
 Declining sales
 Low cost per customer
 Declining profits
 Declining competition
Extending the life Cycle
 Diversification - have core product but introduce
new flavours/styles etc.
 Innovate - use new technology to enhance the
product
 Change flavour
 Repackage
 Advertise to appeal different audience
 Re-launch - product that have been withdrawn can
make comebacks if sold right.
Process Life Cycle

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