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Outline a typical product life cycle (PLC) with reference to one specific industry.

In the
automobile industry, in particular car manufacturers; Toyota or Proton produce
different models (1.5 cc and /or 1.3 cc) to capture market shares. Briefly, explain the
start and end of a particular model.

DIAGRAM OF PRODUCT LIFE CYCLE (PLC)

Product Life Cycle (PLC) shows the path or stage of a product. Product life cycle is
the cycle where every product goes through which starts from introduction stage to decline
stage. During the earlier stages of the product lifecycle, the cost of introducing and promoting
the product may be higher than the revenue. Products that are marketed effectively, the
product will gain high profit and sales for the company during the growth and maturity stages

The product life cycle can be divided into four stages and the first stage is
introduction where the product is introduced into the market and also where marketing
activity, promotion and also product will take place using product differentiation. This is also
a stage to attract customer awareness of the product.

The second stage is growth where the sales of the product will take place when
consumer buy the product and the company will gain profits and market shares increases. The
increase of the sales and profit are due to the promotional activities that was done in the
introduction stage of the product.
The third stage is maturity where sales of the product grows at slower rates and finally
stabilize. In this stage, it often occurs price competition and sales promotion from
competitors with similar type of product. However, the marketing activity and expenditure
levels of the product will be much lower than in the earlier stages of the lifecycle.

The final stage is decline, where the sales of the product drop because consumers
changes to newer product because the product is no longer attractive, relevant or useful to
them. During this stage also, some company will offer great discounts in order to avoid
unsold product and several products are withdrawn in order to cut down cost.

Product life cycle is very important for a product and its company. It shows the stages
that a product goes through from when it was first produced until it is removed from the
market and not all products reaches this final stage of the lifecycle because some product
continues to grow.

PRODUCT LIFE CYCLE OF TOYOTA VIOS (1.5 CC)

INTRODUCTION

In the introduction stage is where Toyota introduces its Toyota Vios 1.5 cc model into
the automobile market and public. At this stage the model idea is already developed, designed
and built. Toyota also uses product differentiation where it introduces the models
specification such as its software and technology used, fuel efficiency, its compact size and
also its speed in order to differentiate its model from other competitors model. Toyota also
allows consumers to test this model. During this stage also Toyota promotes and advertise its
model in the television, newspapers, magazine, billboards and also in Toyotas own website
in order to attract customers to buy the Vios 1.5 cc model.

GROWTH

The second stage is growth, where Toyota uses persuasive advertisement of its model
more rapidly than in the introductory stage to create consumer awareness and consumers
starts to place order and purchase the car due to a very strategic advertisement. In this stage
also the sales of Toyota Vios increases and Toyotas profit increases.
MATURITY

Furthermore, the third stage is maturity stage where sales of the Vios grow at slowing
rates and reaches the highest sales value and finally stabilize. At this stage also Toyota sells
the model at a promotional price and also offer some add on for the car such as body kits,
rims, new interior and sound system. Toyota also made repetitive advertising of the Vios in
order to remind the consumer.

DECLINE

Finally, at the decline stage of the cycle the sale of the Toyota offer great discount in
order to avoid unsold of the Vios model and also to avoid paying year end taxes for the
unsold cars. During this stage also sales of Vios starts to decline and profit of Toyota starts to
come down but the decline is not permanent because Toyota will introduce new variant of the
Vios each year with improved and revised version with new colours, facelift, design and
technology. Therefore, Toyota do not worry much about the decline stage of the Vios because
Toyota always introduces new model of the Vios each year.
REFERENCES

1. http://productlifecyclestages.com/
2. https://prezi.com/-zl6fwjc0goi/product-life-cycle-development-and-the-toyota-
production-adv/
3. http://www.studylecturenotes.com/mba-marketing/product-life-cycle-definition-
stages-importance