Product/Service Life Cycle (PLC) Management

This activity is defined according the stages that a product goes through from inception to when it no longer is produced. The stages are: Development, Introduction, Growth, Maturity, and Decline. The reasons that a company wants to manage these stages are:

• The competitive landscape and how a company becomes successful varies over the product life cycle (PLC), so the marketing mix (pricing, product, promotion, and distribution) will need to change over a product’s life to remain successful.
• Sales volume varies widely over the PLC.
• Profitability is greatest in the Growth and Maturity Stages.
• To assure the long-term viability of a company—want, a mix of products in various stages of the PLC is desirable (e.g., don’t want all products in the Introductory Stage or Decline Stage).
• Stages of the PLC should not be viewed as fixed because they can be extended by the efforts of a company. To read more about extending the PLC, click here.
• Product Life Cycle example/case study
• Life cycle analysis links

• Continually re-assess product's performance because of:
  • evolving firm, industry, competitive, and market environments
  • adjustment to the “marketing mix” (product, promotion, pricing, and distribution) of products in a company's portfolio to assure long-term viability of the firm
  • ISO 9001
    • Manual on ISO 9000
    • QA in residential construction NAHB Research Center
    • Back to Quality Assurance Basics with ISO 9000
  • Six steps to better sales forecasting and demand planning
• Regular customer feedback is essential in understanding changes in usage patterns, desired product attributes, and purchase drivers.
  • Customer acceptance testing
• Assess the regulatory environment to understand new opportunities and barriers (become involved or monitor codes and standards-development committees). (See for example: Removing Building Regulatory Barriers)
• Assess and react to changes in raw materials, land, labor, and energy pricing.
  • Association for Manufacturing Excellence
• Assess macroeconomic environment—inflation, interest rates, economic growth, unemployment, labor shortages, etc.
• Assess industry technology advancements or capabilities of manufacturer—product refinements or improved production efficiencies.
• Assess the product portfolio: does the firm’s current and future portfolio of products assure long-term profitability? (See for example: Tracking the project cycle from idea to launch)
• Assess the competitive landscape. (See for example: Competitor's Strength and Weaknesses Worksheet)
• Technological Competition: a Qualitative Product Life Cycle

To read more about managing the PLC, click here.