Vizula uses Product Life Cycle Modelling as a rapid way to generate product forecasts. Vizula will generate a PLC curve based on a set of parameters and this curve is used to create monthly sales units for the product. This monthly sales data, together with sales price and margin %, is used to generate a five year forecast & business model.

What is Product Life Cycle Modelling?

Product Life-Cycle Theory

What is Product Life Cycle Theory?

Product Life Cycle Explained: Stage and Examples
Product Life Cycle theory is a general marketing model to describe the life cycle of a product from initiation through to end of life. Please click these links to learn more.

The Vizula PLC Curve

Controlling The Curve
The PLC Curve uses eight key parameters which control the curve as follows:-
MIN SALES - The lowest number of units the product will sell per month.
PEAK SALES - The highest number of units the product will sell per month.
INTRODUCTION AMOUNT - A short term burst of sales, such as a load-in to a sales distribution network. The units are in % of PEAK SALES.
INTRODUCTION DURATION - The short term period, in months, for the load-in.
GROWTH - The amount of time, in months, that the product spends during the introduction into the market, and before the product experiences strong sales in the 'maturity' phase. During the growth phase, the product will gain market recognition and acceptance.
MATURITY - The amount of time, in months, that the product stays in the maturity phase of the product life cycle. It is generally the most profitable stage of the sales cycle, the time when the demand is greatest and costs of production are stable and declining. But as the market becomes saturated, competition will increase and demand will start to weaken, driving the product into the final stage of its life cycle.
DECLINE - The amount of time, in months, that product sales are in decline. Increased competition, alternative product offerings and saturation of the product means that market share will decline, driving sales ever lower. The next stage of the life cycle is end of life.
TREND - The overall trend for the curve either positive (increasing) or negative (decreasing) in % of sales.

Annual Weighting
For markets that are known to have cyclical sales, such as increased sales at Christmas, or lower sales during summer holiday season, an annual weighting can be applied for each month of the year. This weighting is defined in terms of a positive or negative percentage.

Average Curve
Vizula can calculate an 'average' curve in order to speed up curve generation even further. It scans all products in your portfolio and averages each parameter before generating a new curve.

This can be an effective, and very quick, way of getting to a starting point for your forecast.

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