Product Life Cycle (PLC)
The Product Life Cycle refers to the stages a product goes through
from its introduction to the market until it is eventually removed.
Understanding PLC helps businesses manage products effectively and
design appropriate marketing strategies.
1. Introduction Stage
Definition: The product is launched into the market for the first
time.
Characteristics:
o Low sales volume.
o High marketing and promotion costs.
o Negative or low profits (due to development and launch
costs).
o Customer awareness is still building.
Strategies:
o Heavy advertising to create awareness.
o Pricing may be high (skimming) or low (penetration) based on
strategy.
o Focus on early adopters.
2. Growth Stage
Definition: Sales start increasing rapidly as the product gains
market acceptance.
Characteristics:
o Rising sales and profits.
o Increased competition.
o Cost per unit decreases due to economies of scale.
o Market becomes more aware of the product.
Strategies:
o Improve product features and quality.
o Expand distribution channels.
o Maintain strong promotion to build brand preference.
3. Maturity Stage
Definition: Sales growth slows down and stabilizes.
Characteristics:
o Market is saturated.
o Profits may start to decline due to competition and price cuts.
o Customers are well-informed.
Strategies:
o Differentiate from competitors through value additions.
o Focus on customer loyalty programs.
o Explore new markets or uses for the product.
o Promotional offers to stimulate demand.
4. Decline Stage
Definition: Sales and profits start falling due to changing customer
preferences or technological advancements.
Characteristics:
o Product loses market relevance.
o Profits shrink or turn into losses.
o Competitors may exit the market.
Strategies:
o Reduce marketing and distribution costs.
o Decide whether to discontinue, sell, or rebrand the product.
o Possibly target a niche segment or loyal customers.
Visual Summary:
Sales ▲
| _________
| / \
| / \
| / \
| / \__________
|--- /----------------------------------→ Time
Intro Growth Maturity Decline
What about the Convenience goods it always to use frequently
