product life cycle
DESCRIPTION
Different life cyclesand strategiesTRANSCRIPT
Paramjit Sharma
Paramjit Sharma
ProductLifeCycle
The Concept
Products Have Limited Life
Product Sales Pass Through Different Stages
Profits varies at Different Stages Of PLC’s
Products Require Different Strategies at Each Stage
Paramjit Sharma
Paramjit Sharma
Paramjit Sharma
ProductLifeCycle
PLC Stages
Introduction
Growth
Maturity
Decline
Paramjit Sharma
ProductLifeCycle
PLC Stages
Paramjit Sharma
ProductLifeCycle
PLC Stages
FaxCell PhonesBottled Water
Type WritersNews Papers
Type Writers
Paramjit Sharma
ProductLifeCycle
PLC-other Patterns
1. Growth-Slump –Maturity Pattern
2. Cycle-Recycle Pattern
3. Scalloped PLC
Not All ProductsExhibits
Bell ShapedPLC
Paramjit Sharma
ProductLifeCycle
PLC-other Patterns
Paramjit Sharma
ProductLifeCycle
Style ,FashionAnd Fad Life Cycle
1.Style- Distinctive mode Of Expression
2.Fashion- Popular Style In Given Field
3.Fad- Fashions that disappear Quickly
Housing( Colonial)
4 Characteristics- Distinctiveness, emulation, mass following ,decline
Rapid Acceptance & Decline
Paramjit Sharma
ProductLifeCycle
Style ,FashionAnd Fad Life Cycle
Paramjit Sharma
ProductLifeCycle
Marketing Strategies--Introduction
Slow GrowthExpansion Of Production CapacityTechnical ProblemsDistribution NetworkCustomer ReluctanceProfits-Low/Negative
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- introduction
One Of The 4 strategies Can Be Pursued
Rapid Skimming
Slow Skimming
Rapid Penetration
Slow Penetration
Paramjit Sharma
ProductLifeCycle
Marketing Strategies-growth
Improve Product quality, add features , improve styling
Adds new Models and flanker Products (New Features)
Enters New Market Segments
Enters New Distribution Channels
Shifts Adv. From Product Awareness to Product Preference
Lowers Prices To Attract next Layer
Paramjit Sharma
ProductLifeCycle
Marketing Strategies-maturity
Maturity Stages
1.Growth Maturity –Sales Start Declining
2.Stable Maturity - Saturation
3.Decaying Maturity –Absolute Level Decline Customers Start Switching
Paramjit Sharma
ProductLifeCycle
Marketing Strategies-maturity
Sales Slow Down Leads To
• Competition• Overcapacity• Increase In Promotion• Weak Competitors Withdraw• Giants Firms Dominate• Some Nichers• High Volume-Low Cost• Some Abandon Low Cost
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- maturity
Market ModificationVolume =no of brand users * Usage Rate Per User
Brand Users Can Be Expanded By
1. Convert Non Users 4 Frequent Use-Juice
2. Enter New Segments 5 Using More -Shampoo
3. Win Competitors 6 New Uses— Food Recipes Customers
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- maturity
Product Modification — Modifying product Characteristics through quality ,feature ,Style Improvement
Quality Improvement
DurabilityReliabilitySpeedTaste
Stronger, Bigger, Plus
Feature Improvement
SizeWeightMaterialsAccessories
Safety, Versatilityconvenience
Style Improvement
AestheticAppeal
Restyling Packaging,New Models of Cars
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- maturity
Marketing Mix ModificationPriceCuts, DiscountsSpl. OccasionsCredit TermsIncrease Price & Quality
Distribution
More OutletsNew Distribution Channels
•Increasing Exp•Message•Timing•Frequency
Advertising
Sales Promotion
Stepping Up Or Reducing
Personal Selling
Quality Of Sales ForceSales Territories
Services
SpeedTech. Assistance
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
Sales Decline May Be slow May Be Rapid May Reach Zero May Petrify at Low Level
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
DeclineIn Sales
•Tech. Advance
•Shifts In Taste
•Competition
•Leads to
•Overcapacity•Price Cutting•Profit Erosion
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
SalesDecline
Leads To
ReduceNumber OfProducts
Withdraw From
Cut AdvExpenses
WeakTrade
Channels
Small Firms
Remai
ning
Firms
SmallerMarket
Segments
Withdraw
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
AgeingProducts
Hidden Costs
Waste Of Management TimeFrequent Price AdjustmentsShort Production RunAttention On Adv & Sales PromotionCast Shadow On Company’s ImageDelay Replacement of Product
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
AgeingProducts
Handling
•System To Identify Weak Products
•Establising Review Committee
•Recommendation Of RC
•Finding Exit Barriers
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
Harrigan,s Strategies
Increasing Investments to Dominate
Maintaining till Uncertainties
Dropping Unprofitable Customer Groups
Harvesting (Milking)
Divesting
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
Harvesting
Gradually Reducing Product Cost
Reduce Product Cost, Sales Force
Services, Advertisement……
Paramjit Sharma
ProductLifeCycle
Marketing Strategies- Decline
Divest - Looking For Buyers
Restage OrRejuvenate –
Adding Value To Original Product
Paramjit Sharma
Too VariableIn shape &Duration
No Fixed SequenceOfStages
No FixedLength Of
Stages
Difficult To AnticipateCurrentStage
Paramjit Sharma