PPT on Product life cycle

1. Product Life cycle
Level 3
PRESENTED BY: NAVNEET JINGAR
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2. Aims
• Discuss the Product Lifecycle
• Discuss each stage of the PLC
• Finally be able to draw a line of profit
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3. Product Lifecycle
• The stages that a product goes through during
its life: introduction, growth, maturity, and
decline.
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4. Product Lifecycle
• The life cycle concept may apply to a brand or
to a category of a product.
• Its duration maybe as short as a few months
or years, depending on the product.
• As a product progresses through the stages,
changes are made to how the product is
marketed.
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5. Introduction Stage
• Most products fail at this stage?
– Why?
• This is the stage in which the product is
initially promoted. Public awareness is very
important to the success of a product. If
people don't know about the product they
won't go out and buy it.
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6. Introduction Stage
• There are two different strategies you can use
to introduce your product to consumers:
– Penetration
– Skimming
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7. Introduction Stage
• Penetration
– This strategy usually set the product price very
high initially and then gradually lowers it over
time.
– This is a good strategy to use if there are few
competitors for your product.
– Profits are high with this strategy but there is also
a great deal of risk. If people don't want to pay
high prices you may lose out.
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8. Introduction Stage
• Skimming
– In this case you set your prices very low at the
beginning and then gradually
increase them.
– This is a good strategy to use if there are a lot of
competitors who control a large portion of the
market.
– Profits are not a concern under this strategy. The
most important thing is to get you product known
and worry about making money at a later time.
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9. Growth
• The Growth stage is where your product starts
to grow. In this stage a very large amount of
money is spent on advertising. You want to
concentrate of telling the consumer how
much better your product is than your
competitors' products.
• What are the ways in which you could prompt
a product?
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10. Growth
• If you are successful with your advertising
strategy then you will see an increase in sales.
Once your sales begin to increase your share
of the market will stabilise.
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11. Maturity
• The third stage in the Product Life Cycle is the
maturity stage. If your product completes the
Introduction and Growth stages then it will
then spend a great deal of time in the
Maturity stage.
• During this stage sales grow at a very fast rate
and then gradually begin to stabilise.
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12. Decline
• This is the stage in which sales of your product
begin to fall. Either everyone that wants to has
bought your product or new, more innovative
products have been created that replace yours.
• Many companies decide to withdrawal their
products from the market due to the downturn.
The only way to increase sales during this period
is to cut your costs reduce your spending.
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13. Other Considerations
• Very few products follow the same cycle. Many products
don't even make it through all four stages. Some stages
even bypass stages
• This is the problem with the PLC. There is no set way for a
product to go. Therefore, every product requires a great
deal of research and close supervision throughout its life.
Without proper research and supervision your product will
probably never get out of the first stage.
• Some Useful Links:
• Marketing Teacher - Product Life Cycle
• Product Life Cycle
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15. Conclusion
• Discussed the Product Lifecycle
• Discussed each stage of the PLC
• Drew a line of Profit
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