PRODUCT LIFE CYCLES

1
PRODUCT LIFE CYCLES

• Dr. Metzner

EMGT451 2/2004
2
The Product Life Cycle

• INTRO GROWTH MATURITY DEC

SALES
III
IV
II
I
TIME
3
PLC MODEL

• PHASE I - INTRODUCTION
• PHASE II - GROWTH
• PHASE III - MATURITY
• PHASE IV - DECLINE

4
PLC With Turbulent Transition to the Mature Phase
5
EXPERIENCE CURVE
6
EXPERIENCE CURVECOST AND PRICE

• 
  
• PRICE
• COST
• SUM OF PRODUCTION

COST PER UNIT
7
P.C. Market Share (June 1992) (WSJ)
16 12 8 4 0
MARKET SHARE
8
Giants Price War Hurt Small P.C. Makers
9
The Journey From the Early Adopters to the Mass
Market
10
The Microwave Boom
11
The Product Life Cycle for Appliances in the
United States
Introduction
Maturity
Decline
Growth
Ranges and Ovens
Refrigerators
Freezers
Automatic Washers
Saturation
Room Air Conditioners
B/W TV
Color TV
Dishwasher
Wringer Washer
Compactor
Time
12
Time in Introductory and Growth Phases for
Appliances in the US(1922 - 1942)

• APPLIANCE Ph I (yrs) Ph 2 (yrs)
• Clothes washers 12 37
• Total coffeemakers 18 40
• Hotplates 6 23
• Gas ranges 7 14
• Electric ranges 15 40
• Refrigerators 7 44
• Irons 13 28
• Toasters 15 43
• Vacuum cleaners 18 40
• Waffle irons 9 18
• Heating pads 15 37
• Portable electric heaters 15 42
• MEAN 12.5 33.8

13
Time in Introductory and Growth Phases for
Appliances in the US(1945 - 1969)

• APPLIANCE Ph I (yrs) Ph 2 (yrs)
• Air conditioners 16 19
• Bed coverings 8 9
• Broilers 6 20
• Can openers 0 12
• Gas clothes dryer 5 21
• Electric clothes dryer 5 22
• Corn poppers 4 22
• Dishwashers 11 16
• Disposers 8 24
• Home freezers 3 26

14
Time in Introductory and Growth Phases for
Appliances in the US(1945 - 1969, Contd)

• APPLIANCE Ph I (yrs) Ph 2 (yrs)
• Home freezers 3 26
• Fry pan skillets 0 21
• Food mixers 13 28
• Gas water heaters 9 18
• Electric water heaters 11 24
• Blenders 10 13
• B/W TV 3 17
• MEAN 7.0 19.5

15
Time in Introductory and Growth Phases for
Appliances in the US(1965 - 1979)

• APPLIANCE Ph I (yrs) Ph 2 (yrs)
• Calculators 2 6
• ADC coffeemakers 1 6
• Curling irons 0 7
• Digital watches 0 7
• Hand-held hair dryers 3 6
• Hair setters 0 4
• Electric knives 1 3
• Slow cookers 0 7
• Color TV 11 15
• MEAN 7.0 19.5

16
The Product Life Cycle

• INTRO GROWTH MATURITY DEC

SALES
III
IV
II
I
TIME
17
The Product Life Cycle for Pharmaceuticals
Sales Volume
Time
18
The Product Life Cycle for Small Appliances in
the US
Sales Volume
Time
19
The Product Life Cycle for Advertisements
Sales Volume
Time
20
The Product Life Cycle for Fads
Sales Volume
Time
21
The Product Life Cycle for Nylon
Sales Volume
Time
22
The Product Life Cycle for Modernized Products
Sales Volume
Time
23
The Relationship of Product Life Cycle to
Profitability
I
II
III
Sales
Sales and Profits ()
Profit
Time
24
Engineering Management 451
Advanced Marketing Management
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