PLC STRATEGIES

Product Life-Cycle Strategies

Product development Sales are zero and investment costs mount Introduction Slow sales growth and profits are nonexistent

Growth Rapid market acceptance and increasing profits.

Maturity Slowdown in sales growth and profits level off or decline Decline Sales fall off and profits drop

Introduction Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales Low

Costs
Profits Marketing Objectives

High cost per customer

Negative Create product awareness and trial

Product
Price Distribution

Offer a basic product

Use cost-plus formula Build selective distribution Heavy to entice product trial

Promotion

Growth Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales Costs Profits Marketing Objectives Rapidly rising Average cost per customer Rising Maximize market share

Product
Price Distribution Promotion

Offer extension, service, warranty

Penetration strategy Build intensive distribution

Reduce to take advantage of demand

Maturity Stage of the PLC

Summary of Characteristics, Objectives, & 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 distribution Increase to encourage brand switching

Decline Stage of the PLC

Summary of Characteristics, Objectives, & Strategies
Sales 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

Strategies For Extending The PLC

Product Management Strategies For Extending The PLC
Market modification Product modification Marketing program modification

Product Marketing Strategies For Extending The PLC

Re-Positioning - Changing the perceived values and intent, a product has in the mind of the consumer. Co-Branding - Enhancing (or diluting) the products brand equity by association with another strong brand Re-Packaging - Literally placing the product in a new package as to revive its appeal.

 Re-Branding - A drastic and costly measure used to disassociate the brand from the previous values associated with it. Increasing Frequency of Use - Encouraging consumers to break away from traditional molds of product usage. Increasing Frequency of Use - Encouraging consumers to break away from traditional molds of product usage. Pricing and Special Offers - Pricing is a positioning tool and a way to influence sales through the use of various price, payment schemes and models.

Godrej hair color Dettol Maggi Tomato ketchup Dabur honey