1. The Model

　　Product lifespans vary by type of product. Perishable goods (e.g. fruit and vegetables) have a short lifespan. Durables (e.g. cars) have a longer lifespan. Although lifespans vary， product life cycles have common elements and follow similar stages.

　　2. The details

　　StagesFeaturesExamples of Possible

　　Strategies

　　DevelopmentHigh cost outlay (e.g. in

　　research)European airline manufacturer

　　investing $600 million in new plant in US (Airbus in Alabama).

　　IntroductionInitial product launch,

　　Customers unfamiliar with product,

　　Low profitabilityRapid skimming (high level promotion and high price),

　　Slow penetration (low price)

　　GrowthSales volumes increase,

　　Competitors enter market,

　　Falling unit costs (economies of scale, learning effect, etc)Add value/Improve quality,

　　Expand distribution,

　　Reduce price,

　　Build brand loyalty

　　MaturityStable demand for product,

　　Increased market competitionModify market/product mix,

　　Find "spin-off" products to build

　　on goodwill of brand

　　DeclineHaving reached saturation point demand falls,

　　Decline in number of competitorsDivest,

　　Focus on niche market,

　　Minimise promotion

　　3. Benefits

　　The PLC model helps focus managers and planners on：

　　▍The stage of the life cycle a product has reached;

　　▍The remaining life of a product-the length of time the product will continue to contribute to profits; and

　　▍The urgency to develop new products or improve products.

　　4. Weaknesses

　　▍Only indicates where the product/market is now rather than where it will be.

　　▍The theory cannot be used for forecasting due to uncertain stage duration.

　　▍Life cycle patterns vary.

　　▍No allowance for products that fail during development or introduction.

　　▍No allowance for products that seem to be mature forever.