Product Life Cycle (PLC) relates to the life of a product which passes through stages of introduction, growth, maturity and decline. The product life cycle goes through multiple stages, involving professional disciplines, and need multiple skills, tools and procedures.
PLC Management is based on certain assumptions - Products have a limited life; Product sales passes through difference challenges, opportunities and problems; Profits rise and fall at various stages and Products require different strategies for financial, marketing, manufacturing, purchasing and human resources at each stage of PLC.
PLC Stages
Introduction covers research, market study, development and launching the product.
Growth is the stage when sales register rapid growth.
Maturity means product sales reach its peak but at slower growth rate, which is also a saturation stage.
Decline is the ultimate stage in the PLC when sales start falling down.
Extension of PLC
Extension strategies require innovation in the product before sales commence its decline.
Pricing are reduced to extend PLC and discounts are offered to maintain sales.
Exploring new geographies for sustenance of sales of the product and adding value to the existing product.
Advertising creates new consumers and act as a recall to the existing consumers.
Packaging changes attracts consumers with a new feel for the product.
There are many instances when new products have failed to complete the PLC. It could be due to improper market research, defective product, pricing too high or low, timing of launch, inadequate marketing, availability of substitutes/alternates, limited sales personnel and languishing distribution network.
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