1. Product Life Cycle

2. PRODUCT LIFE CYCLE GRAPHS
INTRODUCTION
DEVELOPMENT
GROWTH
MATURITY
DECLINE
Obsolescence
4 STAGES
6 STAGES

3. PRODUCT LIFE CYCLE What is the product life cycle? Development:
A product life cycle is a graph that shows a new product from its introduction into the market through to its end of life (recycled or reused) . There are 6 main stages of product life cycle :
Development:
Product is designed, developed and tested before before being batch or mass produced.
Introduction:
cost high
sales volume low
no/little competition - competitive manufacturers watch for acceptance/segment growth losses
demand has to be created
customers have to be prompted to try the product

4. PRODUCT LIFE CYCLE Growth costs reduced due to economies of scale and
sales volume increases significantly
profitability
public awareness
competition begins to increase with a few new players in establishing market
Maturity
Costs are very low as you are well established in market & no need for publicity.
sales volume peaks
increase in competitive offerings
prices tend to drop due to the proliferation of competing products
brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered

5. PRODUCT LIFE CYCLE Decline Obsolescence costs become counter-optimal
sales volume decline or stabilize
prices, profitability diminish
profit becomes more a challenge of production/distribution efficiency than increased sales
Obsolescence
Stop production and sale of product.

6. PRODUCT LIFE CYCLE
A chart showing six stages in the life cycle of a product is given below
Complete the table below to show the name of each numbered stage shown
on the product life cycle chart. The first one has been done for you.
INTRODUCTION
GROWTH
MATURITY
DECLINE
OBSOLESCENCE

7. PRODUCT LIFE CYCLE
State two possible reasons for the increase in sales shown at letter A on the chart.
Decrease in cost of the product
Increased advertising
Release of a new design features such, as new colour, logos, styling, reduced size and weight

8. PRODUCT LIFE CYCLE
Look at Fig.1. Each of the numbers indicates a particular phase of the Product Cycle. These five phases are identified in Table 1 below, but they are not in the correct order. 1 2 3 4 5
Peak/maturity
Rise
Decline
Obsolescence
Introduction

9. PRODUCT LIFE CYCLE Peak/maturity
Rise
Decline
Obsolescence
Introduction
Look at Fig.1. Each of the numbers indicates a particular phase of the Product Cycle. These five phases are identified in Table 1 below, but they are not in the correct order. 
Name of phase
Explanation of each phase (with reference to your chosen product) 1
Introduce the outdoor seat to the market (advertising, price
Introduction 1 2 3 4 5 2
Develop a brand loyalty. More people buy the outdoor seat
Rise 3
Decrease price of outdoor seat, release new versions with different colours and patterns.
Maturity 4
Reduce price further as more competitors flood the market, reduce production
Decline 5
Stop production of original outdoor seat and develop a new range.
Obsolescence

10. PRODUCT LIFE CYCLE
State one advantage of following a product cycle graph for:
(i) the designer
 (ii) the manufacturer
Designer The designer would know when to release new features to boost sales, when to release a brand new product and exactly know when competitors will enter the market
Manufacture
Will know when to increase and decrease production (number of products, man power, materials and bought in components) by following the PLC graph.

11. PRODUCT LIFE CYCLE It is said that we live in a throwaway culture.
Discuss the ways in which built-in products obsolescence contributes to a throwaway culture.