PRODUCT LIFE CYCLE (PLC)

What is Product Life Cycle?

The product life cycle refers to the length of time a product is placed on the market for consumers until it is removed from the shelves. The product life cycle is broken down into four stages—introduction, growth, maturity, and decline. This concept is used by management and marketing professionals as a factor in deciding whether to increase advertising, reduce prices, expand to new markets or redesign packaging.

List the 4 (FOUR) stages of PLC.

1.  Introduction: This step usually involves a significant investment in ads and a marketing campaign aimed at making customers aware of the product and its benefits.

2.  Growth: If the product is successful, it will move to the stage of growth. This is characterized by increased demand, increased production and increased availability.

3.     Maturity: This is the most profitable stage, while production and marketing costs are declining.

4.    Decline: A product takes on increased competition as other companies emulate its success—sometimes with price increases or lower prices. The product may lose its market share and begin to decline.