product life cycle
TRANSCRIPT
Product Life
Cycle
A theoretical idea of the
different phases of a
product.
Stages In Product
Life Cycle
Research & Product Development.
Introduction
Growth
Maturity
Decline
Rejuvenation or Termination.
Uses of PLC Concept
To forecast future sales behavior.
To be a tool of analysis to assist in
formulation of marketing strategy.
To identify deviations from projected
path.
To aid the analysis of the firm’s
product portfolio.
To give a clear picture to all
stakeholders.
PLC & Cash Flow-Sales
0
2
4
6
8
10
12
1 3 5 7
Sales
Cash Flow
(Time in Months)
Rs
In
Million
Research &
Development Phase
Often Complex
Absorbs Significant
Resource
May not be
Successful
May involve a long
lead time before
sales are achieved
Introduction In Market
Pre-launch Planning
Training of FF
Development of
Promotional Mix
Literature Printing
Gifting
Samples Provision
Incentive Plan
Growth Phase
Increase in distribution
outlets( Add 5 more)
High promotional
spending
Improvement of
product: New features
, improved styling &
new dosage forms.
This is the longest &
most profitable phase in
a PLC.
As profits are higher and
sales are increasing.
Market expands but
competitors arrive.
Maturity
At this stage we will be market
leaders in our segment.
Which means at least 1.5 Million net
profit per month.
At the same time we will be
introducing new product range in our
portfolio to sustain growth and keep
company profitable in following years.
TimelineThe PLC life is 5-10 years. If
current set of parameters
prevail it is supposed to be
ten years. A change in
technology & improvement
usually reduces PLC life.
Minimum will be five years.
Maturity will be achieved in
two years.
VisionTo become a major player in
Pakistan market with top
international brands
franchising and later become a
state of the art manufacturer.