PRODUCT LIFE CYCLE

- MATURITY AND
DECLINE
PHASE
 Product cycle – Meaning
 Cycle’s model description
 Maturity phase
 Example of Maturity phase
 Decline phase
 Example of Decline phase
PRODUCT LIFE CYCLE - MEANING
 New product progress through sequence of
stages – introduction to growth , maturity and
decline.
 Sequence is called as PLC.
 Associated with marketing situation which
impacts the marketing strategy and marketing
mix.
PRODUCT LIFE CYCLE’S MODEL
 Applicable for all products
 Can be split into smaller ones
depending upon the product
 Must be considered when a
new product is to be entered
into a market-they dictate the
product’s sales performance
MATURITY PHASE
 When product becomes saturated with variations
of basic product , all competitors represent in
terms of an alternative product-Maturity phase
arrives
 During this phase new brands are introduced to
compete with the company’s existing product and
model changes are frequent
 Time to extend product’s life
 Period of highest returns from product
MATURITY PHASE
 Is extended beyond
anyone’s expectations
 Tide has grown old and
still growing old
STRATEGIES FOR MATURITY PHASE
 Strategic goal : Defend market position from
competitors and improve your product
 Competition : Establishment of competitive
environment
 Product : Price decrease
 Price goal : Defensive pricy policy
 Promotion goal : Maintain loyal to middle men
 Distribution goal : Good supply to the middle
men but with low margins of profit