PRODUCT LIFE CYCLE THEORIES

BYP.HEMANTH VENKATA REDDYP. BHAGYA LAKSHMI

Product Life Cycles (PLC)

The course of a product’s sale and profit over it life time. It involves four distinct stages:

introduction Growth Maturity and decline.

Sales & Profit Life Cycles

IntroductionIntroduction GrowthGrowth MaturityMaturity DeclineDecline

TimeTimeSale

s &

pro

fits

($)

Sale

s &

pro

fits

($)

Introduction stage

The product life-cycle stage in which the new product is first distributed and made available for purchase.

Growth stage

The product life-cycle stage in which a product’s sales start climbing quickly.

Growth of demand and production in the orginal country, with declining costs and prices

Some export demand from countries with lower incomes and wages

Maturity stage

The stage in the product life cycle in which sales growth slows or levels off.

Maturity of demand in the original country with standardized and increasingly intensive production .

Establishment of foreign operation in newer markets to serve them and to over come real or threatened trade barriers.

Decline Stage

The product life cycle stage in which a product’s sales decline

Decline of product demand in the original country with increasing completion from other suppliers and other products

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