product life cycle(plc)
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Geethanjali.C
09AC11
PRODUCT LIFE CYCLE
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The course of a products sales and profitsover its lifetime is called the Product Life
Cycle.
Not all the product follows the product life
cycle.
The PLC concept can be applied to what are
known as styles, fashions, and fads.
INTRODUCTION
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PLC
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Introduction Stage..
Sales growth tends to be slow at this stage.
Cost per customer is high.
Negative profits.
Competitors are few.
The marketing objective is to createproduct awareness.
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Marketing Strategies
Product - one or few products, relativelyundifferentiated.
Price cost plus basis.
Distribution - selective and scattered.
Promotion - Samples or trial incentives.
Advertising High.
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Eg Maggi Noodles
Launched in India in 1982 keeping in mind
working women and children.
Pioneer in instant noodle market.
Low Price
2 MINUTES.
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Growth Stage
Rapidly rising sales.
Rising profits.
Unit manufacturing cost declines.
The marketing objective is to maximizemarket share.
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Marketing Strategies
Product - New product features, packaging,improvement of quality.
Price Penetration.
Distribution - intensive.
Promotion- Reduce.
Advertising- Build brand awareness.
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Example continued
Sales increased.
50% market share.
No.1 brand.
GOOD TO EAT FAST TO COOK
Entry of Competitor
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Maturity Stage
Sales are at peak.
Profits are high. Cost per customer low.
The marketing objective is to maintain or
extend the market share.
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Marketing Strategies
Product modifying or diversify.
Price - Possible price reductions , avoiding aprice war.
Distribution more intensive.
Promotion Incentives.
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Example continuedIntroduced new Variety.
Price Rs 5 Onwards.Big Time Promotional Offers.Slow Down In Sales.Market Saturation.
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Decline Stage
Sales started declining
Profits are at decline
Cost per customer still at low
The marketing objective is to reduce theexpenditure
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Marketing Strategies
Product products change in line.
Price - Prices may be lowered. Distribution - more selective.
Promotion - Expenditures reduced.
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Example continued
Big Time Downfall in Sales.
Formulation Changed.
New products launched.
Failure.
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Reintroduction of MAGGI Noodle
Reintroduced in 1999
Increased Distribution
Focus on new segments of Society
New & Interesting TV Commercial
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