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What is PLC? Explain the stages of PLC?Product life cycle refers to the presence of the product in the marketplace with respect to the ups and down in its business costs and sales activities. Products usually have a limited life and they pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. Products require different strategies in each life cycle stage.
The different stages in a product life cycle are:
Introduction stage-This stage refers to the period when the product has been introduced in the marketplace targeted to a specific or wide segments. Due to less demand at this stage the costs are high and the sales volume are low as also the competition is quite less in the market. Demand has to be created so that customers are inclined towards trying the product.
Growth stage- This stage refers to the period when the product has caught the market and the demand for it is steadily growing. During this stage the costs are reduced due to higher sales volumes as also the competition starts to begin with newer players. Prices are aimed to increase the market share along with profitability being high.
Maturation stage- This stage refers to the period when the product is well established and there is no need for publicity. During this period the costs are low and sales volume peaks with increase in competition .Prices tend to drop and industrial profit go down.
Decline stage: During this stage the product is on a decline in the market. Costs become counter-optimal and sales volume decline or stabilize. While profit becomes more a challenge of production/distribution efficiency than increased sales
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