Plc

transcript

PRODUCT LIFE CYCLEPLC

Managing PLC for ITC-Scissors

PRAVIN SATPUTE

PANKAJ KAPSE

MBA II

SRTMUN-L

PLC Meaning

o Any product passes through certain stages during its life, and this is called the Product Life Cycle PLC.

o The product life cycle is based upon the biological life cycle

o The PLC concept can be applied to what are known as styles, fashions, and fads.

o The PLC concept can described a product class, a product form, or a brand. The PLC concept applies differently in each case.

o Not all the product follows the product life cycle.

Introduction to PLC

Introduction Growth

Maturity Decline

Stages in Product Life Cycle

• Introduction Stage• Growth Stage• Maturity Stage• Decline Stage

PLC shows the stages that products go through from Introduction to withdrawal from the market.

Stages Of Product Life Cycle

• Introduction stage• Growth stage• Maturity stage• Decline 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 create product awareness

Marketing strategies (Introduction stage)

• Product - one or few products, relatively undifferentiated

• Price – use cost plus basis to set a price

• Distribution - Distribution is selective and scattered as the firm commences implementation of the distribution plan.

• Promotion - Promotion is aimed at building brand awareness. Samples or trial incentives may be directed toward the customers. The introductory promotion also is intended to convince potential resellers to carry the product.

• Adertising –Advertising is aimed to be high to build product awareness

Stage of product life cycle

• Rapidly rising sales

• Unit manufacturing cost declines

• Rising profits

• The marketing objective is to maximize market share

Marketing strategies (Growth stage)• Product - New product features and packaging options;

improvement of product quality.

• Price – Price to penetrate the market

• Distribution - Distribution becomes more intensive.

• Promotion- Reduce to take advantage of heavy consumer demand.

• Advertising- Build brand awareness in the mass market

• Sales are at peak

• Cost per customer low

• Profits are high

• The marketing objective is to maintain or extend the market share.

Marketing strategies (maturity stage)

• Product –Either modifying the product or diversify the brand.

• Price - Possible price reductions in response to competition while avoiding a price war.

• Distribution –Build more intensive distribution.

• Promotion - Incentives to get competitors' customers to switch.

• Sales started declining

• Cost per customer still at low

• Profits are at decline

• The marketing objective is to reduce the expenditure

Marketing strategies (Decline stage)

• Product - The number of products in the product line may be reduced.

• Price - Prices may be lowered to liquidate inventory of discontinued products.

• Distribution - Distribution becomes more selective. Channels that no longer are profitable are phased out.

• Promotion - Expenditures are lower and aimed at reinforcing the brand image for continued products.

PLC SCISSORS

Stages Of SCISSORS Launch

Growth

Maturity

Decline

Revival

Second decline

Second revival

• Scissors was promoted as a Generic Product,it Being the only Cigarette in the market.– Out of 150 brands of cigarettes in india 40 were

from ITC, indicating wide spectrum.– Initially it was low priced

Scissor’s PLC

• The PLC concept can be applied by marketers as a useful framework for describing how products and markets work.

• But using the PLC concept for forecasting product performance or for developing marketing strategies presents some practical problems.. In practice, it is difficult to forecast the sales level at each PLC stage, the length of each stage, and the shape of the PLC curve.

Conclusion

Plc

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