Meaning of Product Lifecycle:-
Product Lifecycle Cycle (PLC)- A theory assumes product categories have a limited life and go through four stages: Introductory, Maturity, Growth, and Decline.
The lifecycle of a product begins with its entry into the market and panes through the stages of market development, maturity, and end. The speed of passing in different stages may vary in its life cycle.
During the beginning stage, the profits of the organization increase because the product is sold at a high price and after that, due to competition the prices reduced and profit decreases. With the changing profits, it is required to maintain the sales by bringing necessary changes in the different activities like research, production, marketing, and financial control.
Because of this, the lifecycle of a product is unpredictable.
Example of Product Lifecycle:-
In this example, we will talk about how the product life of the Maruti 800 comes from the Introduction stage to Decline stage.
Example- PLC of Maruti 800
1. Introduction Stage (1983-1986)-
- The first car imported and sold in 1983
- Cheapest car in the market
- A huge gap between demand and supply
- The company took 3 years to clear the resulting waiting list.
2. Growth Stage (1987-1996)-
- Ensure people’s expectations match product promise
- Increase in production and sale
- Increase in profits
- No threats of competition.
3. Maturity Stage (1997-2000)-
- Sales touched 2.00.000 in 1999
- Repositioning of Maruti products
- 40 million 2-wheeler owners targeted
4. Decline Stage (2003-Present)-
- Heavy competition from i10, spark
- A drastic decrease in sales
- Just 33038 units sold in 2009-2010
- Withdrawn from 13 cities including metros.
Stages of Product Lifecycle:
There are different stages through which a product passes from beginning to end-
- First one is, Market Introduction Stage
- The second one, Market Growth Stage
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