PLC

Powerful Essays
Chapter 13
Problem
Outline typical PLC with reference one specific industry to capture market shares. Briefly explain the start and end of particular model.
Proton
Industry level: Automobile

Sector of industry level: 1.3 or 1.5 spec

Individual product level: Exora,Perdana,Saga,Neo

PLC of Proton

The product life cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall.
The main stages of the product life cycle are:
Start Up – introductory phase of a lunch of a product
Growth – new entrance are attracted into the market
Turbulence - where increasing product capacity result in overcapacity, and then turmoil in the market resulting in shakeout
Maturity –where demand and supply in balance
Decline – where the market is saturation and therefore replacement or new product development is required.
Start up

When proton first launched their product in the market there’s lots of uncertainty from consumer during that time. Since it’s new, there’s no guarantee of the success of the brand. Start-up phase is where allocation of trust needs to be in consumers mind because Proton was facing great competition with famous, successful car brand out there. Competing with these is not easy. Since proton already know about the market environment and their competitors Proton was smart, to segment their Proton brand to economy or affordable car market.sales of proton during this phase was low due failure to meet demand in the market.

Growth

The successful launch and introduction of the Exora, the first truly Malaysian MPV in 2009, helped to improve the total production volume from 157,643 units to 173,057 units. Although it is new, the Exora alone has contributed to 20% of the total volume in its first year of production, a testament of its high

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