Short Essay on Product Life-Cycle Model (326 Words)!The product life-cycle itself is not really a strategy but it provides a frame work for managers to formulate strategy over time of the product-life.Tags: Critical Thinking CurriculumExample Of An Argument EssayModel Personal EssayEssay Writing Competitions 2015Global History Dbq EssayBusiness Plan ConceptWriting A 250 Word EssayWestern Civilization Essay TopicsArgumentative Essay Powerpoint
Finally, the product may enter into a decline stage.
In terms of strategic planning the product life cycle approach suggests that different business strategies should be used to support products in different stages of their life cycles.
Brandwire Newsletters Alerts E-Paper E-Learning ET Alexa Skills ET intelligence Zigwheels Mobile ET Android App ET i Phone App ET i Pad App ET Wealth for i Pad ET Blackberry App ET Nokia App ET Markets Android App ET Markets i Phone App When the product is brought into the market. Price wars continue, several products are withdrawn and cost control becomes the way out for most products in this stage.
In this stage, there's heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for distribution. Significance of PLC: PLC analysis, if done properly, can alert a company as to the health of the product in relation to the market it serves.
The PLC has five distinct stages: product development starts when the business finds and develops a new-product idea.
Next is the introduction stage, which is a period of slow sales growth as the product is introduced in the market.In time of growth, it serves as a “cash cow” and it becomes a “dog” when its market share declines.Products in the introduction and growth stages require investments in promoting the product in order to build a customer base in the market.In the maturity stage, the focus shifts to cost effectiveness and production efficiency.The strategy would focus on prolonging the maturity stage of the product and delay the onset of decline stage.At the decline stage, there should he contingency plans either to reverse the decline or to develop alternative products with growth potential.Many international organizations are taking advantage of the different product life cycles in different countries.When we say that products have a life cycle we must assume 4 things: products have a limited life, products sales pass through distinct stages each creating different opportunities, challenges and problems, profits rise and fall at different stages, and products require different marketing, purchasing, financial, and human resource strategies in each stage. Fashion is an accepted or popular style that is currently accepted in a given field.A specific brand’s life cycle can change very rapidly due to changing competitive attacks and responses. A fad is a period of temporary of unusually high sales driven by customer eagerness and instant product popularity(Kotler, 2013, p. The first thing that comes to mind when I think of this is Silly Bandz.The product life cycle is shown as below: A product goes through four typical stages, which are: introduction, growth, maturity and decline.When a new product is introduced, it takes some time before it gets accepted.