3701300 product life cycle1

7/31/2019 3701300 Product Life Cycle1

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PRODUCT LIFE CYCLEPRODUCT LIFE CYCLE

PRESENTED BY :PRESENTED BY :

ABHINAV MOHANABHINAV MOHAN

HARSH RAUTILAHARSH RAUTILA

NALIN GUPTANALIN GUPTA

SATYARTH PANDEYSATYARTH PANDEY


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PRODUCT LIFE CYLEPRODUCT LIFE CYLE

The course of a products sales and profits over its lifetime isThe course of a products sales and profits over its lifetime iscalled the Product Life Cycle.called the Product Life Cycle.

The product life cycle is based upon the biological life cycleThe product life cycle is based upon the biological life cycle

The PLC concept can be applied to what are known as styles,The PLC concept can be applied to what are known as styles,fashions, and fads.fashions, and fads.

The PLC concept can described a product class, a productThe PLC concept can described a product class, a product

form, or a brand. The PLC concept applies differently inform, or a brand. The PLC concept applies differently ineach case.each case.

Not all the product follows the product life cycle.Not all the product follows the product life cycle.


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STAGES OF PLCSTAGES OF PLC

Introduction stageIntroduction stage

Growth stageGrowth stage

Maturity stageMaturity stage

Decline stageDecline stage


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Stages Of Product Life CycleStages Of Product Life Cycle

Introduction stageIntroduction stage Growth stageGrowth stage Maturity stageMaturity stage Decline stageDecline stage

Sales growth tendsSales growth tendsto be slow at thisto be slow at this

stagestage

Cost per customerCost per customeris highis high

Negative profitsNegative profits

Competitors are fewCompetitors are few

The marketingThe marketingobjective is toobjective is tocreate productcreate productawarenessawareness


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Marketing strategies (Introduction stage)Marketing strategies (Introduction stage)

Product - one or few products, relatively undifferentiatedProduct - one or few products, relatively undifferentiated

Price use cost plus basis to set a pricePrice use cost plus basis to set a price

Distribution - Distribution is selective and scattered as the firmDistribution - Distribution is selective and scattered as the firm

commences implementation of the distribution plan.commences implementation of the distribution plan.

Promotion - Promotion is aimed at building brand awareness. SamplesPromotion - Promotion is aimed at building brand awareness. Samplesor trial incentives may be directed toward the customers. Theor trial incentives may be directed toward the customers. Theintroductory promotion also is intended to convince potential resellersintroductory promotion also is intended to convince potential resellersto carry the product.to carry the product.

Adertising Advertising is aimed to be high to build productAdertising Advertising is aimed to be high to build productawarenessawareness


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ExamplesExamples

Pepsi TropicanaPepsi Tropicana

Persona Postpaid (Telenor)Persona Postpaid (Telenor)

Clear ShampooClear Shampoo


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Stage of product lifeStage of product lifecyclecycle

IntroductionIntroductionstagestage

Growth stageGrowth stage Maturity stageMaturity stage Decline stageDecline stage

Rapidly rising salesRapidly rising sales

Unit manufacturingUnit manufacturingcost declinescost declines

Rising profitsRising profits

The marketingThe marketing

objective is toobjective is tomaximize marketmaximize market

shareshare


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Marketing strategies (Growth stage)Marketing strategies (Growth stage)

Product - New product features andProduct - New product features andpackaging options; improvement of productpackaging options; improvement of productquality.quality.

Price Price to penetrate the marketPrice Price to penetrate the market

Distribution - Distribution becomes moreDistribution - Distribution becomes moreintensive.intensive.

Promotion- Reduce to take advantage ofPromotion- Reduce to take advantage of

heavy consumer demand.heavy consumer demand.

Advertising- Build brand awareness in theAdvertising- Build brand awareness in themass marketmass market


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ExamplesExamples

WaridWarid

Mountain dewMountain dew

LaysLays


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Introduction stageIntroduction stage Growth stageGrowth stage Maturity stageMaturity stage Decline stageDecline stage

Sales are at peakSales are at peak

Cost per customerCost per customer

lowlow

Profits are highProfits are high

The marketingThe marketing

objective is toobjective is to

maintain or extendmaintain or extend

the market share.the market share.


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Marketing strategies (maturity stage)Marketing strategies (maturity stage)

Product Either modifying the product orProduct Either modifying the product ordiversify the brand.diversify the brand.

Price - Possible price reductions in responsePrice - Possible price reductions in response

to competition while avoiding a price war.to competition while avoiding a price war.

Distribution Build more intensiveDistribution Build more intensivedistribution.distribution.

Promotion - Incentives to get competitors'Promotion - Incentives to get competitors'customers to switchcustomers to switch..


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ExamplesExamples

Head & shoulderHead & shoulder

MobilinkMobilink

LuxLux

PepsiPepsi


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Sales startedSales starteddecliningdeclining

Cost per customerCost per customerstill at lowstill at low

Profits are atProfits are atdeclinedecline

The marketingThe marketingobjective is toobjective is toreduce thereduce theexpenditureexpenditure


Introduction stageIntroduction stage Growth stageGrowth stage Maturity stageMaturity stage

Decline stageDecline stage


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Marketing strategies (Decline stage)Marketing strategies (Decline stage)

Product - The number of products in theProduct - The number of products in theproduct line may be reduced.product line may be reduced.

Price - Prices may be lowered to liquidatePrice - Prices may be lowered to liquidate

inventory of discontinued products.inventory of discontinued products.

Distribution - Distribution becomes moreDistribution - Distribution becomes moreselective. Channels that no longer areselective. Channels that no longer areprofitable are phased out.profitable are phased out.

Promotion - Expenditures are lower andPromotion - Expenditures are lower andaimed at reinforcing the brand image foraimed at reinforcing the brand image forcontinued products.continued products.


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ExamplesExamples

Paktel GsmPaktel Gsm

Pepsi TwistPepsi Twist

Igloo Ice CreamIgloo Ice Cream

Yummy Ice CreamYummy Ice Cream


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The PLC concept can be applied byThe PLC concept can be applied bymarketers as a useful framework formarketers as a useful framework fordescribing how products and marketsdescribing how products and marketswork. But using the PLC concept forwork. But using the PLC concept for

forecasting product performance or forforecasting product performance or fordeveloping marketing strategies presentsdeveloping marketing strategies presentssome practical problems.. In practice, it issome practical problems.. In practice, it isdifficult to forecast the sales level at eachdifficult to forecast the sales level at eachPLC stage, the length of each stage, andPLC stage, the length of each stage, and

the shape of the PLC curve.the shape of the PLC curve.

ConclusionConclusion

3701300 product life cycle1

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