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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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Stage of product lifeStage of product lifecyclecycle
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
Stage of product lifeStage of product lifecyclecycle
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