about product life cycle based on the HBR article "Narima Dhalla & Sonia Yuseph, 1975".

1. SUBMITTED BY:- Sourabh Meena
Arshdeep Singh
PRODUCT LIFE CYCLE

2. • INTRODUCTION
• The International product life cycle, developed by the economist Raymond Vernon in 1966.
• Each product has a certain life cycle that begins with its development and ends with its decline within four stages
“introduction”, “growth”, “maturity” and “decline”.
• The Product Life Cycle (PLC) is based upon the biological life cycle.

3. Ideal Shape Of PLC

4. Stages Of PLCSTAGES OF PLC
Introduction Stage –
oCould be the most expensive.
oMarket Share is small.
oHigh Cost of launch .
o No profit generally.
Growth Stage –
oStrong growth in sales and profits.
oProfit will increase.
oPromotional activity to maximize the potential of this growth stage.

5. Maturity Stage –
oThe product is established
oMaintain the market share.
oMost competitive time for most products.
oNeed to do improvement and modifications.
Decline Stage –
oMarket share start to shrink,
oNeeds innovation.
oBrand loyalty may give profit longer.
oPrice reduction and Advertisement.

6. •

7. The product life cycle myth
• It is a myth that every product has to go through each of the stages of the product life cycle.
• The duration depends on demand, production costs and revenues.
• Some products move through the life cycle much faster than others.
• Although decline can be avoided by reinventing elements of the product.
• No Life cycles for Brands.

9. Blunders due to PLC
• Management believes Products in dying stage.
• PLC is Dependent variable.
• Maturities period may not be Extended.

10. THEORY CHALLENGED
• Many products have been around for generations, and show no signs of decline
or death.
• Their survival is a function of keen attention to brand identity and equity.
• Companies that nurture consumers' impressions of the value the product delivers
year after year can stave off indefinitely its demise..

11. Products That Defy the Theory
• American Express
• Budweiser
• Camel
• Coca-Cola
• Western Union
• Wells-Fargo
• Brands that have died can be reincarnated, though perhaps in more limited
distribution.

12. Customer Equity
• Much more predictive method.
• Customer equity is the lifetime value of all a brand's customers.
• The more equity relative to its competitors, the longer it is likely to live.
• If a brand has weak equity, marketing managers know it needs serious marketing
attention to make it healthy again.