product life cycle

PRODUCT LIFE CYCLE

Prepared By : HITESH BAID

Time

ProductDevelop-

ment

Introduction

Profits

Sales

Growth Maturity Decline

Losses/Investments ($)

Sales andProfits ($)

Sales and Profits Over the Product’s Life From Inception to Demise

Product Life Cycle

Introduction stage

• Promotional expenditures are at their highest ratio to sales

• Decision has to be taken on being a pioneer or not

• Pioneer advantage Brand Recall The brand establishes the attributes the

product class should possess Producer advantage

Market Entry Strategy

Rapid Skimming Slow Skimming

Rapid Penetration

Slow Penetration

HIGH

LOW

P

R

I

C

E

LOWHIGH

PROMOTION

GROWTH• IMPROVES QUALITY AND ADDS NEW

PRODUCT FEATURE•ADDS NEW MODELS AND FLANKER

PRODUCTS• ENTERS NEW MARKET SEGMENTS•SHIFTS FROM PRODUCT AWARENESS

ADVERTISING TO PRODUCT PREFERENCE ADVERTISING

•LOWER PRICES

MATURITY

•GROWTH MATURITY• STABLE MATURITY• DECAYING MATURITY

STRATEGIES

•MARKET MODIFICATIONVOLUME = NO. OF BRAND USERS*USAGE RATE PER USERNumber of brand users converting non users into users entering new market segments winning competitor’s customers

The Indian Chapter

The Challenge

•Get people accustomed to chocolates- primarily seen as a western taste

•Do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself

CDM in the 80’s•Brand was considered as a surrogate of

parental affection for their children

•The chocolate goodness (appetite appeal) was being harnessed

The Expression

CDM positioned as ‘The perfect expression of

parental love’

‘Sometimes a Cadbury can say it better than words’

Category audits in early 1990’s

•Chocolate are meant for kids only•Seen as an indulgence product•Negative associations

▫Too much was bad▫Bad for health

Key Issue

With communication consciously addressing kids, consumption also got

restricted within the same segment resulting in brand stagnation

Marketing Challenge

To expand the consumer base by making CDM aspirational and desirable

to the adult segment

Communication TaskTo increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free.

Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings.

What was the consumer saying??

Extensive brand audits on the consumer pulse revealed that Cadbury Dairy Milk moments were spontaneous, carefree,

special, real moments.

So, what if these ‘moments’ were brought back to life even for adults?

The atmosphere at that time…

The new resurgent India.

The era of globalization had sowed the seeds of ‘I wanna break free’ syndrome

Avenues for freedom for expression were more than welcome

Increasing brand usage

• use the product on more occassions• use more of the product in each occasion•Use the product in new ways

Heinz EZ Squirt