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
 The Product Life Cycle

Maturity

Decline

Growth Sales curve

Introduction Profit curve

Time
 Strategies - Introduction
• Skimming the market
• Penetrating the market
• Must have sufficient resources to
withstand the initial losses and heavy
promotion costs
• Incremental selling efforts at this stage is
highest
 Strategies - Growth
• Improves quality and adds features
• Adds new models and variants
• Enters new market segments
• Increases distribution coverage and adds new
channels
• Shifts communication from awareness to
preference building
• Scale economies enable it to lower prices to
attract the next level of price conscious buyers
 Strategies - Maturity
• Most products are in this stage
• Price wars are inevitable.
• Scramble for market share.
• The fittest survive.
• Market modification, product modification,
marketing mix modification can help
extend the maturity stage.
 Strategies - Decline
• Withdrawal
• Rationalisation of products
• Harvesting whatever is possible
• Divesting the product
THANKS