PLC (Product Life Cycle) is a framework dividing product life cycle into 4 stages. Growth, necessary money, marketing target in each stage are as follows.
In this stage customer first see and become to recognize products or services. The company needs to introduce them to channels or customers to expand the market. However, it needs much money to penetrate them.
In this stage, customers recognize them well so sales significantly increase. On the contrary, many players enter the market so the company needs to launch many kinds of products or services. Besides, it needs much investment for facilities or channel expansion.
In this stage, competition becomes peak and pressure of price down also becomes high. Players scramble for limited market.
In this stage, the company, perhaps, needs to consider exiting the market.
Limitation of PLC
PLC is usually useful when considering that the company should do, but it cannot be applied to some products or services. For some products, constant sales occur and for other some products, same sales cycle repeats for a long term.