Product decisions

Product life cycle(PLC)

Content of topic (PLC)

Concept of Product life cycle(PLC) Stages of PLC1. Introduction stage 2.Growth stage 3.Maturity stage 4.Decline stage

Marketing strategies in every stage of PLC

Examples

Product Life Cycle

product life cycle is the course of a products sales and profits over time. product life cycle (PLC) deals with the life of a product in the market with respect to business or commercial costs and sales measures.

Product Life Cycle & Its Stages

Sales and Profits Profits Time Decline Sales

Product Development

Introduction

Growth

Maturity

Sales and Profits Over the Products Lifetime

Introduction Stage of the PLC

Summary of StrategiesSales Costs Profits Marketing Objectives Low High cost per customer Negative Create product awareness and trial

Product
Price Distribution

Offer a basic product

Firm normally chooses Pricing strategy - mkt. penetration or mkt. skimming.

Few and selective distribution, secure distribution in retail outlets High advertising, high promotion

Promotion

Examples

1.T-series mobiles 2.Horlicks foodles 3.TVS Wego 4.TVS jive

5.Micra Car

Growth Stage of the PLC

Summary of StrategiesSales Costs Profits Marketing Objectives Gradually rising Average cost per customer Gradually rising Improve pdt . quality, add new features,enter into new mkt segments, new D.C.

Product
Price Distribution Promotion

Offer extension, service, warranty

To persuade marketers brand Suitable pricing strategy & D.C. choice, price is slightly lowered to attract the next layer of price sensitive buyers

Build intensive distribution

Slightly raised or remain the same ,to build faith

Examples
Vim liquid dishwasher Dettol handwash Hippo Knor ready to cook CBZ extreme

Maturity Stage of the PLC

Summary of Strategies
Sales Costs Profits Marketing Objectives Product Price Distribution Promotion Peak Low cost per customer High Maximize profits while defending market share Diversify brand and models Match or best competitors Build more intensive ,selective, exclusive distribution It should be cost effective to hold existing customers

Marketing strategies during Maturity phase

1. Convert nonusers to users- e.g. All out tried to convert mosquito repellant mat users to liquid vapourisers. 2. Enter new mkt. segments L&T looking for overseas market. 3. Win competitors customers- Pepsi & Coca-cola 4. More frequent use by suggesting various occasions of the use of the product- SONATA Watches, Dairy Milk, Amul Butter 5. More usage per occasion.

6. New & more varied uses of the same product- Milkmaid

apart from its use in tea & coffee can also be used as ingredient of sweets. 7.Product modifications by increasing the functional performance- Change in flavours like Maggi Tomato sauce, plain, with chilli, etc. 8.Improving style9. S/C augmentation, image mktg. , & carving out a niche within a specific mkt. segment become the critical tools to retain the competitive edge.

Examples
Scooty pep Splendor plus Colgate Cadbury Amul dairy products Lux soap

Decline Stage of the PLC

Summary of StrategiesSales Costs Profits Marketing Objectives Product Price Distribution Promotion Declining Low cost per customer Declining
Reduce expenditures and milk the brand

Phase out weak items Cut price

Selective: phase out unprofitable outlets Reduce to minimum level

Example
Fanta apple Hero honda glamour TVS flame TVS victor Nirma beauty soap

Stage 1: Introduction
Launched in India in 1982 keeping in mind working population. women and children. Low Price BAS 2 MINUTE

Stage 2: Growth
Sales Increased 50% Market Share No 1 Brand GOOD TO EAT FAST TO COOK

Stage 3: Maturity
Introduced new Variety Price Rs 5 Onwards Big Time Promotional Offers Slow Down In Sales Market Saturation

Stage 4: Decline
Big Time Downfall in Sales Formulation Changed New products launched Failure Entry of a Competitor

Reintroduction of Maggi noodles

Reintroduced in 1999 Focus on new segments of Society Increased Distribution New & Interesting TV Commercial using for promotion