Presented By Anup Kumar Ojha MBA IV

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Introduction
 Product life-cycle management : is the succession of strategies used by business management as a product goes through its life-cycle.

UMA KOLKATA

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Product life-cycle (PLC)

 Example: Like human beings, products also have an arc. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death.  A similar life-cycle is seen in the case of products.  Product life cycle (PLC) has to do with the life of a product in the market with respect to Business/commercial costs and sales measures.
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To say that a product has a life cycle is to assert three things:

 Products have a limited life.  Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller,  Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage

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Different stages of PLC

 introduction stage: I. II. III. IV. V. VI.

costs are very high slow sales volumes to start little or no competition demand has to be created customers have to be prompted to try the product makes no money at this stage
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Growth stage
I. II. III. IV. V.

costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in

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Maturity stage
I. II. III. IV. V. VI.

costs are lowered as a result of production volumes increasing and experience curve effects sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or increase market share Industrial profits go down
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Saturation and decline stage

costs become counter-optimal II. sales volume decline III. prices, profitability diminish IV. profit becomes more a challenge of production/distribution efficiency than increased sales
I.

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Lessons of the PLC

 It is claimed that every product has a life period, it is launched, it grows, and at some point, may die. A fair comment is that at least in the short term not all products or services die. Jeans may die, but clothes probably will not. Legal services or medical services may die, but depending on the social and political climate, probably will not.

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Limitations
 The PLC model offers some degree of usefulness

to marketing managers, in that it is based on factual assumptions. Nevertheless, it is difficult for marketing management to gauge accurately where a product is on its PLC graph. A rise in sales per se is not necessarily evidence of growth. A fall in sales per se does not typify decline. Furthermore, some products do not (or to date, at the least, have not) experience a decline. Coca Cola and Pepsi are examples of two products that have existed for many decades, but are still popular products all over the world.
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Any Questions

?
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THANK YOU

ojhaanupkumar@gmail.com

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