1 Introduction
Kotler and Armstrong (2008) stated that the product life cycle (PLC) is the course of a product’s sales and profits over its lifetime, and Komninos (2002) suggest it is the period from the first launch of the new product into the market until its final withdrawal from the market. According to McDonald (1999), (PLC) is very important marketing theory. Armstrong and Kotler (2009) employ this concept to describe a product class, a brand, or a product form. And also could apply to service industry, such as a sales outlet within a hotel, a destination, an individual property and, chain of outlet, even an industry (Bowie and Buttle, 2004, 121).
This report will demonstrate that how product life cycle theory could be employ in Chinese Home Inns hotel which opened 810 stores in different area in China (168 main cities). At the first place, the product life cycle theory will be review, and the review also include product, price policy, distribution channel, advertising and promotion strategy in each stage of product life cycle (PLC). In the second part, the author will apply PLC theory into Chinese Home Inns hotel, depth analysis what kind of strategy (product, price policy, distribution channel, advertising and promotion strategy) could use in each stage and characteristics of each stage.

2 The concept of product life cycle

The concept of product life cycle is mentioned by Raymond Vernon (1966). He indicated there are four main stages in a product (brand, industry) whole life, which include introduction stage, growth stage, maturity stage and decline stage. And the traditional four stages could present in a graph as follow:
[pic]
Figure 1. Product life cycle
Source: David, M. (1996) Marketing. 2nd edn. Oxford: Blackwell Business.

2.1 Introduction stage
Kotler, Bowen and Makens, (2010. p348) identified product introduction is a period of slow