There is much written about Product Life Cycle modelling. Here are some examples:-
  • Product Life-Cyle Theory
  • What is Product Life Cycle Theory?
  • Product Life Cycle Explained: Stage and Examples

In Vizula, we use 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.
The Product Life Cycle curve is at the front end of the Vizula forecasting system and will generate monthly unit sales per month.

PLC Curve
The PLC Curve uses eight key parameters as follows:-
  • MIN SALES - This defines the lowest number of units the product will sell per month.
  • PEAK SALES - This defines the highest number of units the product will sell per month.
  • LOAD IN AMOUNT - This defines a short term burst of sales, such as a load-in to a sales distribution network. The units are in % of PEAK SALES.
  • LOAD IN DURATION - This defines the short term period, in months, for the load-in.
  • GROWTH - This defines 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 - This defines 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 - This defines 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 - This defines an overall trend for the curve either positive (increasing) or negative (decreasing) in % of sales.

Editing The PLC Curve
1. Click the PRODUCT LIFE CYCLE tile.
2. The 'Edit Curve' sub-menu will open.

3. Perform the edit and click 'OK'.

Selecting an Average Curve
You can select an 'average' curve for the product by clicking the 'AVERAGE' curve button when the 'Edit Curve' menu is open.
The average curve is calculated across all your 'active' product portfolio.
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