“ The stages through which the

individual products developed over a

period of time is known as Product
Life Cycle “
Each product may have different life
cycle.
PLC determine revenue earned.
Helps the firms to identify the needs
of product like support , redesign etc..
May help in new product development
planning.
Not all product follow this cycle like
style and fasihon.
Product class ( soft drinks )
Product from ( diet colas )
Brand ( Diet Dr.Pepper )
 The Product Life Cycle (PLC) has Five Stages
• Product Development
• Introduction
• Growth
• Maturity
• Decline
 PLC Stages  Begins when the
company develops
 Product a new-product idea
development  Sales are zero
 Introduction
 Growth  Investment costs
 Maturity are high
 Decline  Profits are negative
 PLC Stages  Low sales
 High cost per
 Product development
customer
Introduction acquired
 Growth
 Maturity  Negative profits
 Decline  Innovators are
targeted
 Little competition
 Product – Offer a basic product
 Price – Use cost-plus basis to set
 Distribution – Build selective distribution
 Advertising – Build awareness among
early adopters and dealers/resellers
 Sales Promotion – Heavy expenditures to
create trial
 PLC Stages  Rapidly rising sales
 Average cost per
 Product development customer
 Introduction  Rising profits
Growth  Early adopters are
 Maturity targeted
 Decline  Growing competition
 Product – Offer product extensions,
service, warranty
 Price – Penetration pricing
 Distribution – Build intensive distribution
 Advertising – Build awareness and
interest in the mass market
 Sales Promotion – Reduce expenditures
to take advantage of consumer demand
 PLC Stages  Sales peak
 Low cost per
 Product development customer
 Introduction  High profits
 Growth
 Competition begins
Maturity to decline
 Decline
 Product – Diversify brand and models
 Price – Set to match or beat competition
 Distribution – Build more intensive
distribution
 Advertising – Stress brand differences
and benefits
 Sales Promotion – Increase to encourage
brand switching
 PLC Stages  Declining sales
 Low cost per
 Product development customer
 Introduction  Declining profits
 Growth
 Declining
 Maturity
competition
Decline
Product – Phase out weak items
Price – Cut price
Distribution – Use selective
distribution: phase out unprofitable
outlets
Advertising – Reduce to level
needed to retain hard-core loyalists
Sales Promotion – Reduce to minimal
level