Product Life

Cycle

A theoretical idea of the

different phases of a

product.

Stages In Product

Life Cycle

Research & Product Development.

Introduction

Growth

Maturity

Decline

Rejuvenation or Termination.

Uses of PLC Concept

To forecast future sales behavior.

To be a tool of analysis to assist in

formulation of marketing strategy.

To identify deviations from projected

path.

To aid the analysis of the firm’s

product portfolio.

To give a clear picture to all

stakeholders.

PLC & Cash Flow-Sales

0

2

4

6

8

10

12

1 3 5 7

Sales

Cash Flow

(Time in Months)

Rs

In

Million

Research &

Development Phase

Often Complex

Absorbs Significant

Resource

May not be

Successful

May involve a long

lead time before

sales are achieved

Introduction In Market

Pre-launch Planning

Training of FF

Development of

Promotional Mix

Literature Printing

Gifting

Samples Provision

Incentive Plan

Growth Phase

Increase in distribution

outlets( Add 5 more)

High promotional

spending

Improvement of

product: New features

, improved styling &

new dosage forms.

This is the longest &

most profitable phase in

a PLC.

As profits are higher and

sales are increasing.

Market expands but

competitors arrive.

Maturity

At this stage we will be market

leaders in our segment.

Which means at least 1.5 Million net

profit per month.

At the same time we will be

introducing new product range in our

portfolio to sustain growth and keep

company profitable in following years.

TimelineThe PLC life is 5-10 years. If

current set of parameters

prevail it is supposed to be

ten years. A change in

technology & improvement

usually reduces PLC life.

Minimum will be five years.

Maturity will be achieved in

two years.

VisionTo become a major player in

Pakistan market with top

international brands

franchising and later become a

state of the art manufacturer.