product life cycle
TRANSCRIPT
PRODUCT LINE
PRODUCT LINE
A group of products clubbed together by virtue of satisfying a particular class of needs or distributed through the same channel or possessing common physical and technical characteristics.
Dabur - Food, Shampoo, Hair oil
PRODUCT LINE ANALYSIS
• Product lining is the marketing strategy of offering for sale several related products.
• Line depth refers to the number of product variants in a line.
• Line consistency refers to how closely related the products that make up the line are.
• Line vulnerability refers to the percentage of sales or profits that are derived from only a few products in the line.
PRODUCT LINE- STRETCHING DECISIONS
New Products
Present Products
H H
HHH
H
Pri
ce
Pri
ce
Pri
ce
LL L L
L LQuality QualityQuality
New Products
New Products
New Products
Present Products
Present Products
Downward Stretch Upward Stretch Two-way Stretch
Nescafe MaruthiTitan
Product Mix
PRODUCT MIX
A Product mix is the set of all products and items a particular seller offers for Sale. Eg :- Dabur
Components are •The Width of a product mix refers to how many different product lines the company carries.•The Length of a product mix refers to the total number of items in the mix.•The Depth of a product mix refers to how many variants are offered of each product in the line.•The Consistency is the degree to which product lines are related
Length And Width
Hair Oils Shampoo Oral Care Skin care Health Supplements
Dabur Amla Hair Oil
Dabur Vatika Shampoo
Dabur Red Toothpaste
Gulabari Skin Care
Dabur Chyawanprash
Vatika Hair Oil
Babool Toothpaste
Dabur Uveda
Dabur Honey
Dabur Anmol
Promise Dabur Glucose
Meswak
Hair Oils Shampoo
Oral Care
Skin care
Health Supplements
Dabur Amla Hair Oil
Dabur Vatika Shampoo
Dabur Red Toothpaste
Gulabari Skin Care
Dabur Chyawanprash
Vatika Hair Oil
Babool Toothpaste
Dabur Uveda
Dabur Honey
Dabur Anmol
Promise Dabur Glucose
Meswak
DEPTH
Hair Oil
Amla
Flower Magic Mustard
Vatika
Enriched Coconut
Enriched Almond
Anmol
DEPTH
Shampoo
Vatika
Smooth & Silky
Black Shine
Dandruff Control
Total Protect
Root Strengthenin
g
CONSISTENCY
• The Consistency is the degree to which product lines are related
• It also refers to how closely related the various product lines are in end use, production requirements, distribution channels, or in some other way.
PRODUCT LIFE CYCLE
ORIGIN
THE idea of the Product Life Cycle was first developed in 1965 by Theodore Levitt in an article entitled “Exploit the Product Life Cycle” published in the Harvard Business Review on 1 November 1965.
INTRODUCTION
All products and services have certain life cycles. The life cycle refers to the period from the product’s first launch into the market until its final withdrawal and it is split up in phases. During this period significant changes are made in the way that the product is behaving into the market i.e. its reflection in respect of sales to the company that introduced it into the market. Since an increase in profits is the major goal of a company that introduces a product into a market,
PRODUCT LIFE CYCLE
The “Product Life Cycle” is the name given to the stages through which a product passes over time. The classic Product Life Cycle has four stages:
1. Product development
2. Introduction
3. Growth
4. Maturity
5. Decline
Product development is the incubation stage of the product life cycle. There are no sales and the firm prepares to introduce the product. As the product progresses through its life cycle, changes in the marketing mix usually are required in order to adjust to the evolving challenges and opportunities
Product Development Stage
INTRODUCTION STAGE
At the market introduction stage the size of the market, sales volumes and sales growth are small. A product will also normally be subject to little or no competition. The primary goal in the introduction stage is to establish a market and build consumer demand for the product.
During the introduction stage, the primary goal is to establish a market and build primary demand for the product class.
GROWTH STAGE
The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted. During the growth stage, the goal is to gain consumer preference and
increase sales.
Maturity StageThe maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. Competition may result in decreased market share and/or prices. The competing products may be very similar at this point, increasing the difficulty of the product. The firm places effort into encouraging competitors' customers to switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products. During the maturity stage, the primary goal is to maintain market share and extend the product life cycle.
Decline Stage Eventually sales begin to decline as the market becomes saturated, the
product becomes technologically obsolete, or customer tastes change. If the product has developed brand
loyalty, the profitability may be maintained longer. Unit costs may increase with the declining production volumes and eventually no more profit can be made. During the decline phase, the firm generally has three options:
a) Maintain the product in hopes that competitors will exit. Reduce costs and find new uses for the product.
b) · Harvest it, reducing marketing support and coasting along until no more profit can be made.
c) · Discontinue the product when no more profit can be made or there is a successor product.
Development phase
Introduction phase
Growth phase Maturity phase
Decline phase
Product Limited no. of variations
Introduction of product variation & models
improvement upgrade of product
Price decrease Models that are not profitable withdrown
Price High sales to middle man
Aggressive price policy for sales increase
Re-estimation of price policy
Defensive price policy
Maintain price level for small profit
Promotion Creation of public market product awareness
Reinforcement of product awareness & performance
Reinforcement of middle man
Maintain loyal to middle man
Gradual decrease
Distribution Through certain distribution channels
Distribution through all channels available
Distribution with good supply but with low margins of profit
Distribution with good supply but with low margins of profit
Withdrawal from most distribution channel