A Descriptive PPT about "Product Life Cycle" covering all points,stages and examples of it. Also describes the diagram properly for a good presentation. Note: Edit and Changes you can do as per your assigned task.

1. PRESENTED
BY:
PRODUCT LIFE CYCLE

2. – Product Life Cycle (PLC):The Product Life Cycle (PLC) is
based upon the biological life cycle. For example, a
seed is planted (introduction); it begins to sprout
(growth); it shoots out leaves and puts down roots as
it becomes an adult (maturity); after a long period as
an adult the plant begins to shrink and die out
(decline).
• Each product may have a different life cycle
• PLC determines revenue earned
• Contributes to strategic marketing planning
• May help the firm to identify when
a product needs support, redesign, reinvigorating, withdrawal, etc.
• May help in new product development planning
• May help in forecasting and managing cash flow

3. Time
Product
Develop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/
Investments ($)
Sales and
Profits ($)
PRODUCT LIFE CYCLE

4.  INTRODUCTION STAGE
Sales
Costs
Profits
Marketing Objectives
Product
Price
Low sales
High cost per customer
Negative
Create product awareness
and trial
Offer a basic product
Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers

5. THE PRODUCT LIFE CYCLE CONCEPT
IS BASED ON FOUR PREMISES
Products have a
limited life.
Product sales pass through
distinct stages, each with
different marketing
implications.
Profits from a product
vary at different stages
in the life cycle.
Products require different
strategies at different
life cycle stages.

6. PLC MARKETING STRATEGIES
Stage Objective Marketing Strategy
Introduction Awareness & trial Communicate benefits
Growth Usage of firm’s brand Specific brand communication,
lower prices, expand distribution
Maturity Maintain market share Sales promotion, drop price,
Extend life cycle expand distribution, new uses
& new versions of product
Decline Decide what to do Maintain, harvest, or divest
with product

7. LIMITATIONS OF THE PLC
1. The life cycle concept applies best to product
forms rather than to classes of products or
specific brands.
2. The life cycle concept may lead marketers to
think that a product has a predetermined life,
which may produce problems in interpreting
sales and profits.
3. It is only a descriptive way of looking at the
behavior of a product and the life cycle can
not predict the behavior of a product.

8. Sales
Costs
Profits
Marketing Objectives
Product
Price
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
Offer product extensions,
service, warranty
Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest in
the mass market
Growth Stage of the PLC

9. Sales
Costs
Profits
Marketing Objectives
Product
Price
Peak sales
Low cost per customer
High profits
Maximize profit while defending
market share
Diversify brand and models
Price to match or best
competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and
benefits
Maturity Stage of the PLC

10. Sales
Costs
Profits
Marketing Objectives
Product
Price
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the
brand
Phase out weak items
Cut price
Distribution Go selective: phase out
unprofitable outlets
Advertising Reduce to level needed to retain
hard-core loyal customers
Decline Stage of the PLC

11. EXAMPLE:
NEW FLAVOR OF PEPSI
• Stage 1: Market Introduction
– Pepsi bottles the new flavored product and places it on the market
for consumers.
– Pepsi also spends a lot of money advertising the new flavor
creating awareness.
• Stage 2: Market Growth
– Customers like the flavor and begin to make routine purchases.
– Coke introduces their competing flavor.

12. Cont.
• Stage 3: Market Maturity
– More competitors enter the market taking some of Pepsi’s profits.
• Stage 4: Sales Decline
– Customers have moved on to the next new flavor.
– Some loyal fans stay behind.

13. THANK YOU