Manufacturing

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Product life cycle changes
Sandeep D. Tajane
Abhinandan A. Sawant
Sagar Waghotkar

Product Life Cycle (PLC):The Product Life

Cycle (PLC) is based upon the biological life
cycle. For example, a seed is planted
(introduction); it begins to sprout (growth); it
shoots out leaves and puts down roots as it
becomes an adult (maturity); after a long
period as an adult the plant begins to shrink
and die out (decline).

Each product may have a different life cycle

PLC determines revenue earned
Contributes to strategic marketing planning
May help the firm to identify when
a product needs support, redesign,
reinvigorating, withdrawal, etc.
May help in new product development planning
May help in forecasting and managing cash flow

Example: New Flavor of

Pepsi

Stage 1: Market Introduction

Pepsi bottles the new flavored product and

places it on the market for consumers.
Pepsi also spends a lot of money advertising
the new flavor creating awareness.

Stage 2: Market Growth

Customers like the flavor and begin to
make routine purchases.
Coke introduces their competing flavor.

Stage 3: Market Maturity

More competitors enter the market

taking some of Pepsis profits.

Stage 4: Sales Decline

Customers have moved on to the next
new flavor.
Some loyal fans stay behind.