Product Life cycle

By Ekta Amin(04)
Abhijit Ghuge()
Sanket Bhorade(23)
Devesh Dhange(35)
Nilam Dhurgude(38)

Product Life Cycles

Product life cycles describe the
changes in consumer demand over
time. No product can be in demand
forever. Trends, technology and
lifestyles change, which affects
consumer demand.

Unit 2

The
The Product
Product Life
Life Cycle
Cycle
Concept
Concept is
is Based
Based on
on Four
Four
Premises
Premises
Products have a
limited life.

Profits from a product

vary at different stages
in the life cycle.

Product sales pass through

Products require different
distinct stages, each with
strategies at different
different marketing
life cycle stages.
implications.

PLC Stages and

Characteristics

Product Life-Cycle
Strategies
PLC Stages
Product development
Introduction
Growth
Maturity
Decline

Begins when the

company develops a
new-product idea
Sales are zero
Investment costs are
high
Profits are negative

Product Life-Cycle
Strategies
PLC Stages
Product development
Introduction
Growth
Maturity
Decline

Low sales
High cost per
customer acquired
Negative profits
Innovators are
targeted
Little competition

Marketing Strategies:
Introduction Stage
Product Offer a basic product
Price Use cost-plus basis to set
Distribution Build selective
distribution
Advertising Build awareness among
early adopters and dealers/resellers
Sales Promotion Heavy expenditures
to create trial

Product Life-Cycle
Strategies
PLC Stages
Product development
Introduction
Growth
Maturity
Decline

Rapidly rising sales

Average cost per
customer
Rising profits
Early adopters are
targeted
Growing competition

Marketing Strategies:
Growth Stage
Product Offer product extensions,
service, warranty
Price Penetration pricing
Distribution Build intensive
distribution
Advertising Build awareness and
interest in the mass market
Sales Promotion Reduce
expenditures to take advantage of
consumer demand

Product Life-Cycle
Strategies
PLC Stages

Product development
Introduction
Growth
Maturity
Decline

Sales peak
Low cost per customer
High profits
Middle majority are
targeted
Competition begins to
decline

Marketing Strategies:
Maturity Stage
Product Diversify brand and models
Price Set to match or beat
competition
Distribution Build more intensive
distribution
Advertising Stress brand differences
and benefits
Sales Promotion Increase to
encourage brand switching

Product Life-Cycle
Strategies
PLC Stages
Product development
Introduction
Growth
Maturity
Decline

Declining sales
Low cost per customer
Declining profits
Laggards are targeted
Declining competition

Marketing Strategies: Decline

Stage
Product Phase out weak items
Price Cut price
Distribution Use selective
distribution: phase out unprofitable
outlets
Advertising Reduce to level needed
to retain hard-core loyalists
Sales Promotion Reduce to minimal
level

Dairy Milk

Introduction
Cadbury chocolates was founded in 1824 by
John Cadbury in Birmingham, UK.
Launched Dairy Milk in 1905 in UK by George
Cadbury.
USP: Unique Milk chocolate that contains more
milk with creamy taste.
In 1948, it was launched in India.
Target market: Kids to Adults
Major competitors Amul, Nestle.

Timeline
1905 Cadbury launches Dairy Milk onto the market.
1913 Dairy Milk becomes Cadbury's best selling line.
Mid 1920s Dairy Milk becomes UK brand leader.
1928 Fruit & Nut is introduced as a variation of Dairy Milk. The
"glass and a half" advertising slogan is introduced.
1933 Whole-Nut is added to the Dairy Milk family.
1948 Cadbury Dairy Milk is sold in India.
2004 Dairy Milk is re-launched with the new and modern pack
design but with same recipe.
2005 Cadbury Dairy Milk celebrates its 100th birthday.

Life Cycle
Sales

-30%

Maturity

Growth
Introduction
+40%

1905

1990

1994 1998 2003 2004

+36%

2010

Time

Introduction
1905 Cadbury launches Dairy Milk onto the market.
Positioned as Unique Milk chocolate with far more milk and
creamy taste.
In the 1980s, it was positioned as the perfect expression of
love,
Sometimes Cadbury can say it better than words.
During the early1990s, emphasised its international
identity, the Real taste of chocolate.
Re-positioning was done in 1994, to the free-child in every
adult.

Growth
In 1998, growth for the brand dealt with popularising
consumption in a social context.
Especially in more traditional settings like weddings.
With the campaign Khaanein waallon ko khaanein ka
bahana chahiye featuring Cyrus Broacha, Cadbury Dairy
Milk aimed to substantially increase penetration levels.
The campaign was launched in tandem with the award
winning Kuchh khaas hai...campaign.
The brand penetrated into smaller towns and sales
volumes grew by 40%.

Maturity
The Worm Controversy resulted in Cadburys brand
image taking a beating.
Sales declined up to 30%.
They had to recall a batch of chocolates. Cadbury rebuilt
the trust of people by launching project Vishwasin 2004.
Redesign of Packaging.
Focus shifted to taking the concept of Kuch Meetha Ho
Jaaye further in 2004 with Amitabh Bachchan.
In 2010, Shubh Aarambh ads that have brought back the
old charm of Cadbury Dairy Milk with its very interesting
insight of mixing the traditional with the new age.

PRODUCT LIFE CYCLE OF NOKIA

Stages

Time
Duration

Introductio 1995 - 2002

n
Growth

2002 - 2009

Maturity

2009 - 2011

Decline

2011 to till
now

4 Ps

INTRODUCTION ( GROWTH ( 2002

1995 2002)
2009 )

MATURITY
( 2009 2011 )

DECLINE ( 2011
till now )

1. Entered India 1. Launched

in 1995
phones
2. Sold both
without
GSM & CDMA
external
phones
antenna
3. Launched 1st
2. better
model Nokia
features like
2110 with
games,
Nokia tune
alarm,
4. 1st model
ergonomic
capable of
keypad,
sending/recei
display etc.
ving sms
3. Launched
models like
N95 to
compete with
Apples iphone

1. Launched
touch screen
models
2. Launched 1st
Maemo 5 OS
phone N-900
3. Launched
Qwerty+touc
h model N-97
4. Focussed on
E-series
phones to
compete with
Blackberry

1. Upgraded its
Symbian OS
with 3 &
Belle
2. Shifted focus
on Windows
as its main
OS
3. Launched 1st
Windows
phone, Lumia
800
4. Used Symbian
only in low
end models

1. Price
Skimmingstr
ategy

1. Followed
Price
penetration

1. Price
penetration
strategy

1. Followed
Price
skimming

Distribution channel
China/Chennai

China/Chennai

China/Chennai

China/Chennai

Gurgaons mother
warehouse

Gurgaons mother
warehouse

Gurgaons mother
warehouse

Gurgaons mother
warehouse

HCL India warehouse

HCL India
warehouse

HCL India
warehouse

HCL India warehouse

Sub-distributors
(BSB MarketingSouth Delhi)

Sub-distributors
(BSB MarketingSouth Delhi)

Sub-distributors
(BSB MarketingSouth Delhi)

Sub-distributors
(BSB MarketingSouth Delhi)

Nokia Priority
Dealers/Organised
retail

Nokia Priority
Dealers/Organised
retail

Nokia Priority
Dealers/
Organised retail

Nokia Priority
Dealers/
Organised retail

Customers

Customers

Customers

Customers

PRODUCT LIFE CYCLE OF

SAMSUNG
Stages

Time Duration

Introduction

2001 - 2006

Growth

2006 - 2011

Maturity

2011 till now

4 Ps

Introduction
2001 2006

Growth 2006
2011

1. Entered india in
2001
2. Launched very few
models due to
lesser demand &
innovation
3. Launched 1st model
samsung R220 with
simple blue display.
4. Competed with the
then market leader
motorola and
nokia.

1. Launched phones
without external
antenna
2. Had better features
like games, alarm,
ergonomic keypad,
color display etc.
3. Wide range of
simple or dual sim
mobile marked
beginning of
growth stage
4. Launched wide
range of touch
screen mobile
phones to compete
nokia

1. Followed
1. Followed price
penetration
penetration
pricing strategy
strategy in
2. launched samsung
beginning of

Maturity 2011
till now
1. Launched smart
phones with
android
2. Galaxy series
3. Launched windows
phones to compete
nokia windows
mobile
4. Focussed on galaxy
S series phones to
compete with all
the competitors

1. Followed price
penetration
strategy to sustain
growing

Distribution channel
Koria

Koria

Koria

Mother warehouse (delhi)

Mother warehouse (delhi)

Mother warehouse (delhi)

Sub-distributors (all the state)

Sub-distributors (all the state)

Sub-distributors (all the

state)

Samsung dealers/
Organised retail

Samsung dealers/
Organised retail

Samsung dealers/
Organised retail/
Smart galleries

Customers

Customers

Customers

Comparison of Growth rate

Growth Rate
2000%
1500%
1000%

1480%

500%
0% 0%
Introduction
-500%

Nokia
Samsung

1120%
67%
Growth

45%
Maturity

-65%
Decline

PLC Comparison

 Founded:February 4, 2004,Cambridge ,Massachusetts, United

States
Headquarter :Menlo Park, California.
In 2012, Facebook was valued at $104 billion, and by January 2014
its market capitalization had risen to over $134 billion. At the end
of January 2014,1.23 billionusers were active on the website
every month, while on December 31, 2013,945 millionof this
total were identified by the company as mobile users.
Total revenue 7.87 billion

Some stats
Total number of monthly active Facebook users :1,310,000,000
Total number of mobile Facebook users :680,000,000
Increase in Facebook users from 2012 to 2013 :22 %
Percent of all Facebook users who log on in any given day: 48 %
Average time spent on Facebook per visit : 18 minutes
Total number of Facebook pages : 54,200,000
India has crossed 100 million active users in India the second country, after
the United States( as on 9 th apr 2014-ET)

 The first red flag : Facebook Sees Big Traffic Drops in US and
Canada -Inside Facebook
US lost nearly 6 million users.
Canada also fell by 1.52 million.
Meanwhile, the United Kingdom, Norway and Russia all
posted losses of more than100,000.
Revenue only from advertising
Most of the new users continue to come from countries that
are relatively late in adopting Facebook.

 Most of the new users continue to come

from countries that are relatively late in
adopting Facebook, as has been the trend for
the past year, explained Mr. Eldon.

 JD is the UKs leading retailer and distributor of

fashionable sports and casual wear.
most innovative visual merchandiser of sportswear
and branded fashion.
Founded in 1981 in Bury, in the North West of England
JD is proud of the fact that it provides its customers
with the latest sport and athletic inspired fashion
apparel and footwear, as well as fashion and outdoor
clothing products and equipment from the very best

Maggi 2-minutes Noodles

Introductory Stage
High failure rates
No competition : NIL created an entirely new food category instant noodles - in the Indian packaged food market
Frequent product modification
High marketing and production costs : NIL created an entirely new
food category - instant noodles - in the Indian packaged food
market
Promotion focuses on awareness and information

STPD Analysis
Segmentatio
n

Targeting

Positioning

Differentiatio
n

Age

Kids

Fast to cook
good to eat

Taste Eating

Habits

Youth

2-minute
noodles

Flavours

Lifestyle of
urban families

Office goers

Taste bhi
health bhi

Packaging

Working
Women
Health
conscious
people

Market Penetration
Strategies
Promotional campaigns in school.
Advertising strategies: - focusing on kids.
Conducting regular market research

Availability in different packages:

50 gms.
100 gms
200 gms
family packs (400gms.)

New product innovation according to the need of consumers:

Veg. Atta Noodles.
Dal Atta Noodles.
Cuppa Mania.

Growth Stage
Increasing rate of sales: Changed the formulation of Maggi
noodles in 1997.
Entrance of competitors: due to growing popularity of Top
Ramen
Initial healthy profits: 10 yrs back it enjoyed around 50%
market share in this segment which was valued at around 250
crores
Promotion emphasizes brand ads: In March 1999, NIL
reintroduced the old formulation of the noodles, after which
the sales revived.

Maturity Stage
Declining sales growth
Saturated markets: Top Ramen, Chings, Yipee
Extending product line: Maggie Sauce, Taste maker,
Maggie Aata noodles, Maggie Masala, Maggie Pasta
etc
Heavy promotions to dealers and consumers :2 min
mein Khushiyaan
Prices and profits fall

STPD Analysis
Classic Noodles :5 10 yrs.
Veg. Atta Noodles Health Conscious
Rice Mania Teenage
Cuppa Mania Office goers, Working women.

Lifebuoy

Introduction
Introduced in 1895, officially sold from 1935
It was a brick size carbolic soap
Health & well being
Targeted at men and masculine health.

Growth
Germ killer soap.
Rural market
Strong promotion.

Maturity
Stagnant market share.
Same brand image.
Reached maturity on over hundred years of
product existence.
Market share in carbolic segment was 95%

Maturity

Introduction of new soaps with fragrances.

Positioning of sanitary soap.
Introduction of new germ killing soaps.
Size & smell.
Now it has become a family soap
n easy grip and a modern look and various
fragnances.

THANKYOU!!!