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    Product Life Cycle PLC: Managing PLC For ITC-Scissors

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    pankajkapse
    The document discusses the product life cycle (PLC) and its stages - introduction, growth, maturity, and decline. It provides details on the characteristics of each stage including typical sales levels, costs, profits, and marketing objectives. Examples are given of how the PLC applies to scissors as a product. The conclusion notes that while the PLC concept is useful for understanding how products progress over time, it can be difficult to precisely forecast performance at each stage.

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    Product Life Cycle PLC: Managing PLC For ITC-Scissors

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    pankajkapse
    624 views18 pages
    The document discusses the product life cycle (PLC) and its stages - introduction, growth, maturity, and decline. It provides details on the characteristics of each stage including typical sales levels, costs, profits, and marketing objectives. Examples are given of how the PLC applies to scissors as a product. The conclusion notes that while the PLC concept is useful for understanding how products progress over time, it can be difficult to precisely forecast performance at each stage.

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    The document discusses the product life cycle (PLC) and its stages - introduction, growth, maturity, and decline. It provides details on the characteristics of each stage including typical sales levels, costs, profits, and marketing objectives. Examples are given of how the PLC applies to scissors as a product. The conclusion notes that while the PLC concept is useful for understanding how products progress over time, it can be difficult to precisely forecast performance at each stage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    624 views18 pages

    Product Life Cycle PLC: Managing PLC For ITC-Scissors

    Uploaded by

    pankajkapse
    The document discusses the product life cycle (PLC) and its stages - introduction, growth, maturity, and decline. It provides details on the characteristics of each stage including typical sales levels, costs, profits, and marketing objectives. Examples are given of how the PLC applies to scissors as a product. The conclusion notes that while the PLC concept is useful for understanding how products progress over time, it can be difficult to precisely forecast performance at each stage.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 18

    PRODUCT LIFE CYCLE

    PLC

    Managing PLC for ITC-Scissors

    PRAVIN SATPUTE

    PANKAJ KAPSE

    MBA II

    SRTMUN-L
    PLC Meaning
    o Any product passes through certain stages during its life,
    and this is called the Product Life Cycle PLC.

    o The product life cycle is based upon the biological life


    cycle

    o The PLC concept can be applied to what are known as


    styles, fashions, and fads.

    o The PLC concept can described a product class, a


    product form, or a brand. The PLC concept applies
    differently in each case.

    o Not all the product follows the product life cycle.


    Introduction to PLC

    Introduction Growth Maturity Decline


    Stages in Product Life Cycle
    PLC shows the stages that products go through from Introduction to withdrawal
    from the market.

    • Introduction Stage
    • Growth Stage
    • Maturity Stage
    • Decline Stage
    • Sales growth tends to be
    slow at this stage

    • Cost per customer is high


    Stages Of Product Life Cycle
    • Negative profits
    • Introduction stage
    • Growth stage • Competitors are few
    • Maturity stage
    • Decline stage • The marketing objective is
    to create product
    awareness
    Marketing strategies (Introduction stage)

    • Product - one or few products, relatively undifferentiated

    • Price – use cost plus basis to set a price

    • Distribution - Distribution is selective and scattered as the firm


    commences implementation of the distribution plan.

    • Promotion - Promotion is aimed at building brand awareness. Samples


    or trial incentives may be directed toward the customers. The
    introductory promotion also is intended to convince potential resellers
    to carry the product.

    • Adertising –Advertising is aimed to be high to build product


    awareness
    • Rapidly rising sales

    • Unit manufacturing
    Stage of product life cycle cost declines
    • Introduction stage
    • Growth stage • Rising profits
    • Maturity stage
    • Decline stage
    • The marketing
    objective is to
    maximize market
    share
    Marketing strategies (Growth stage)
    • Product - New product features and packaging options;
    improvement of product quality.

    • Price – Price to penetrate the market

    • Distribution - Distribution becomes more intensive.

    • Promotion- Reduce to take advantage of heavy consumer


    demand.

    • Advertising- Build brand awareness in the mass market


    • Sales are at peak

    • Cost per customer


    Stage of product life cycle
    low
    • Introduction stage
    • Growth stage • Profits are high
    • Maturity stage
    • Decline stage
    • The marketing
    objective is to
    maintain or extend
    the market share.
    Marketing strategies (maturity stage)
    • Product –Either modifying the product or diversify the
    brand.

    • Price - Possible price reductions in response to competition


    while avoiding a price war.

    • Distribution –Build more intensive distribution.

    • Promotion - Incentives to get competitors' customers to


    switch.
    • Sales started
    declining

    • Cost per customer


    Stage of product life cycle still at low
    • Introduction stage
    • Growth stage • Profits are at decline
    • Maturity stage
    • Decline stage
    • The marketing
    objective is to
    reduce the
    expenditure
    Marketing strategies (Decline stage)
    • Product - The number of products in the product line may be
    reduced.

    • Price - Prices may be lowered to liquidate inventory of


    discontinued products.

    • Distribution - Distribution becomes more selective. Channels


    that no longer are profitable are phased out.

    • Promotion - Expenditures are lower and aimed at reinforcing


    the brand image for continued products.
    PLC SCISSORS
    Stages Of SCISSORS

    Launch

    Growth

    Maturity

    Decline

    Revival

    Second decline

    Second revival
    • Scissors was promoted as a Generic Product,it
    Being the only Cigarette in the market.
    – Out of 150 brands of cigarettes in india 40 were
    from ITC, indicating wide spectrum.
    – Initially it was low priced
    Scissor’s PLC
    Conclusion
    • The PLC concept can be applied by marketers as a
    useful framework for describing how products and
    markets work.
    • But using the PLC concept for forecasting product
    performance or for developing marketing strategies
    presents some practical problems.. In practice, it is
    difficult to forecast the sales level at each PLC stage,
    the length of each stage, and the shape of the PLC
    curve.

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