PLC AND ILC

PLC AND ILC

The product life cycle of any product comprises of four stages, namely-introduction, growth, maturity and decline. The product, in our case- Dettol hand santiser, is in its maturity stage as the the product is universally accepted. Further under maturity stage there are three sub-stages i.e. growth,stable and decaying stages. After the last stage, the weak competitors withdraw as sales slowdown creates overcapacity in the industry. The market is segmented into high end and low end markets or division into earning profits through low volume and high margins, and high volume and low cost.

In the segmentation of the market into high end and low ends, our product is placed in the high end segment despite its affordability. This can be attributed to the brand value of the company DETTOL itself. The value of the name has led to such an increase in the sales of the particular hand sanitiser.
Any absence of the above said would have proved to be fatal to the sales graph of the product.

If the market is divided into choosing between becoming one of the three remaining and dominating competitors (quality leader, service leader and cost leader) and choosing profits through high volume and lower cost; and choosing between market positioning (market specialists, product specialists and customising firms) i.e. low volume and high profits, our product chooses the former. We have a price that is affordable to the general public thus making us produce low cost and more volume good producing firms.

The shape of the curve of the product life cycle of the Dettol hand sanitiser is bell shaped curve but the industry life cycle is an S shaped curve. This is because despite the fall of the particular product the overall demand of the commodity will eventually rise thus making it first fall and then rise just like the curve of the letter S.