Product Life Cycle (PLC)

Product Life Cycle (PLC)

Product Life Cycle (PLC)

A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The concept of the product that passes through changes in its total life known as Product Life Cycle (PLC) is based on the following facts:
Product has a limited life
A product sale passes through distinct stages
Profits rise and fall at different stages of Product Life Cycle (PLC)
Products require different marketing, financial, manufacturing, purchasing and
Human resource strategies in each life cycle stage.

Product Life Cycle (PLC)

Demand/Technology Life Cycle

We have to remember that although certain basic needs remain unchanged over a long period of time, improved technologies effect upgradations in the matching product for the need category. For example, our need for traveling from one place to another has been satisfied by progressively superior categories of products like horseback, horse-drawn carriage, sailboat, steam engine, electric trains, automobiles, airplanes etc. These are manifestations of technology life cycles, where the demand/technology cycle leads to product life cycle as shown in the curves

Example of Product Life Cycle (PLC)

The traditional product life cycle curve is broken up into four key stages. Products first go through the Introduction stage, before passing into the Growth stage. Next comes Maturity until eventually the product will enter the Decline stage. These examples illustrate these stages for particular markets in more detail.
3D Televisions: 3D may have been around for a few decades, but only after considerable investment from broadcasters and technology companies are 3D TVs available for the home, providing a good example of a product that is in the Introduction Stage.
Blue Ray Players: With advanced technology delivering the very best viewing experience, Blue Ray equipment is currently enjoying the steady increase in sales that’s typical of the Growth Stage.
DVD Players: Introduced a number of years ago, manufacturers that make DVDs, and the equipment needed to play them, have established a strong market share. However, they still have to deal with the challenges from other technologies that are characteristic of the Maturity Stage.
Video Recorders: While it is still possible to purchase VCR’s this is a product that is definitely in the Decline Stage, as it’s become easier and cheaper for consumers to switch to the other, more modern formats.

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