1.
PRODUCT LIFE
CYCLE
Presented by: Diksha Vashisht
Specialization: Marketing

2.
Meaning
• All products have certain length of life during which they pass
through certain identifiable stages. The PLC is a conceptual
representation of product ageing process like our life is
divided into stages same as life of a product is also divided.
• Product start with introduction in the market for the purpose
of sale. The demand of that product is gradually increased in
the market & it reach to its maximum, from where it start
decline. It is effective lifespan of a product.

3.
Definitions:
• According to William J. Stanton:
“The Product Life Cycle concept is the
explanation of the product from its birth to death
as a product exists in different stages & in
different competitive environments”

4.
Stages of PLC

5.
 Example of PLC
Stages Time Duration
Introduction 1995-2002
Growth 2002-2009
Maturity 2009-2011
Decline 2011 to till now

6.
 Introduction Stage
Penetration
* This strategy usually set the product price very low initially &
then gradually higher it over time.
Example: NETFLIX
 Skimming
* In this case you set your prices very high at the beginning & then
reduce gradually if necessary.
Example: SUNSILK

7.
 Growth Stage
• 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.

8.
 Maturity Stage
If your product completes the Introduction & Growth
stages then it will spend a great deal of time in the
maturity stage.
During this stage sales grow at a very fast rate & then
gradually begin to stabilise.

9.
 Decline Stage
• 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 product 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

10.
Importance of PLC
• Helpful in sales forecasting.
• Helpful as a predictive tool
• Helpful as a planning tool.
• Helpful as a control tool
• Helpful in price determination
• Development of new product
• Comparison of new products

11.
Conclusion
• The product life cycle describes how product goes through
the four stages & the different mix of marketing activities
in each phase is done to maximize the profitability of the
product.
• All products whether costly or cheap are mortal.
• It explain the growth & decline of revenues & profits
associated with a product or services