Product life

cycle

INTRODUCTION
The theory of a product life cycle was first
introduced in the 1950s to explain the
expected life cycle of a typical product from
design to its end, a period divided into the
phases of product introduction, product growth,
maturity, saturation and decline. The goal of
managing a product's life cycle is to maximize
its value and profitability at each stage. Life
cycle is primarily associated with marketing
theory.

DEFINITIONS

According to Philip Kotler

The product life cycle is an attempt to recognize

the distinct
stages in the sales history of the
product.

According to William J. Stanton

The product life cycle concept is the explanation of
the product
exists in different stages and different competitive
environments.

STAGES IN THE PRODUCT LIFE CYCLE

INTRODUCTION
GROWTH
MATURITY
SATURATION
DECLINE

CHART ON PRODUCT LIFE CYCLE

INTRODUCTION STAGE

t is the 1st stage, wherein the product is launched in the market w

ull scale production & marketing programme.
The product is a new one. It means a product that opens up a en
new market, replaces an existing product or significantly broadens
market for an existing product.
Usually low sales.
Heavy promotion to make consumer aware of the product.
imited distribution.
usually negative cash flow.

EXAMPLE FOR INTRODUCTION STAGE

JIO 4G introduced itself with a offer of
unlimited 4G data for 3 months for
its customers.

UBER gave discounted and

free rides
for its customers as its
introducing offer.

GROWTH STAGE

e the market has accepted the product, sales begin to rise& pro
er its 2nd stage.
h faster growing sales.
market grows, profits rise but attracts the entry of new competi
al healthy profits.
is wider distribution.
lopment costs are recovered.

EXAMPLE FOR growth STAGE

JUSTDIAL is a rapidly growing company wh

Targets the both end of the customers i.e.
Business owners and the customers.

FLIPKART.COM an Indian company

is at the growth stage at present.

MATURITY STAGE
Declining sales growth.
Saturated markets.
Extending product line.
Weaker competitors start to leave the
market.
Cash flow should be strongly positive.

EXAMPLE FOR maturity STAGE

COLGATE was first found in 1806 it has
gone
Through all the stages but at present it
is in the maturity stage.

FROOTI has done a lot of changes in its

life and at present its in the maturity
Stage.

Saturation Stage:
This is the period of stability. The sales of the product
reach the peak and there is no further possibility to
increase it.
Saturation of sales
It continues till substitutes enter into the market.
Marketer must try to develop new and alternative uses
of product.

DECLINE STAGE
This is the final stage , sooner or later actual sales begin
to fall under
the impact of new product competition & changing
consumer behavior.
More competitors leave the market.
Excess capacity &rising unit costs .

EXAMPLE FOR decline STAGE

Most stylish product for its time is now in
declining stage because of new products
introduced by its competitors.

Once upon a time the strongest phone and

most advanced
phone for the time, is not in existence now
because the
technology has improved a lot.

Example of the product life cycle: APPLE IPOD

Apple Ipod sales

Sales in million units

60
50
40
30
20
10
0

Apple Ipod sales

FACTORS AFFECTING THE PRODUCT LIFE CYCL

Rate of technological change.
Rate of market acceptance.
Competitors entry.
Economic & managerial forces.
Risk bearing capacity.
Government policy.

Submitted by: 3rd b.com A1

HARSHITH B
GAUTHAM D S
RAJESH GOWDA
SUHAN A V
SANDEEP V NAYAK
VINAY K P L
MOHAMMED ALI
SAKLAYAN MUSTAK
SUNIL SHETTY

THAN
K
YOU