Slide 1

PRODUCT LIFE CYCLE

Distinct changes in the sales history of a product having distinct opportunities and problems, requiring distinct marketing strategies with different N.P. potential.

STRATEGIES AT VARIOUS STAGES OF PLCSales/Profit

INTRODUCTIONPrice

Selected product Life Cycle Paaterns

N

A

Growth:

Improve product quality add new features , style Add new modelsEnter new market segmentsIncrease distribution channelsFrom product awareness Ad to preference ad.Lower price to attract the neat layer of price sensitive buyers

Maturity

Create niches: Volume leaders Quality leaders Cost leaders Service leaders

Market SpecialistsProduct SpecialistsCustomiser To BharatConvenience Foodsi. Innovative and affordable products.Parle from Glucose to Cream biscuits price reduced. ii. Nudge consumers to more from unbranded to branded Marico and Emami in hair oil.Moving to new markets iii Create new niches

Emami Navaratna cooling oil Navaratna extra thanda Navaratna coco cooling oil Live 5 oils 5 in 1 cocnunt, amla, ahmond, olive and jojoba. Godrej No 1 7 variants saffron, milk cream.Moving to new markets14 Where penetration is lowNestle Rs. 5 noodles wide distributions.Pepsi Rs. 5 ( cannot reduce further unless production every 250 kms)New distribution model no fridge, cold boxes.New products, Glucose plus with right salt for those who work hard and sweatPowered sachet Fanta mix with water

Moving to new markets15New ad campaign or product improvement now reposition in the mind of the consumere.g videocon from value for money to upmarket In maturity stage, kick starting again and again.If short PLC prolong Horlicks - change target- cold spot from childerns ( comics) to teenagers Rasna from childra to grown ups.Second coming - RelaunchChanging environments, habits, needs, desires, competitionTTks Fiesta when kamasutra down new Fiesta 5 colours from each day Saturday, Sunday rest.Listermi - from 40% to 56% through relaunchBakemens Mint after polomint.

Second coming - RelaunchGrish cider in U.K as premium drink for this.Cut the alcohol content to 4.5%Intensify apple flavourNot in taps and pubsNo plastic jugs,Use fancy pink bottles, to be poured over ice, jack the price.

Second coming - RelaunchPampers in china by P& GChinese preferred cloth or kaidang ku plastic feel.Uncomfortable so softer and absorb more pampers showed babies sleep earlier and more big hit.

Second coming - Relaunch2. Market Modification:

Increase the number of users:- Convert non users- Enter new market segments- Win competitors customersIncrease usage rate:- More frequent use- More usage- New & Varied use3. Product Modification:

- Quality Improvement in durability, reliability, speed, taste - Features Size, Wt, additives - Style

Product lifecycle stageIntroductionGrowthMaturityDeclineSalesLowRapidly risingPeakingDecliningCost per customerHighAverageLowLowProfitsNegativeRisingHighDecliningCustomersInnovatorsEarly adoptersMiddle majorityLaggardsCompetitorsFewGrowingStable and some exitingDecliningMarketingCreate product awareness and trialMaximize market shareMaximize profit while defendingReduce expenditure and milk brandProduct lifecycle stageIntroductionGrowthMaturityDeclineProductBasic product onlyOffer new model and features, service, warranties etcDiversify the brandPhase out and rationalise modelsPriceHigh cost plusLower pricing to attract new customer and grow market shareCompetitor- based pricingCut price to stimulate salesPlace / DistributionSelectiveIntensiveIntensiveSelectivePromotion/ advertisingProduct awareness among early adopters and innovatorsBuild product awareness in mass marketsStress brand differentiation and product benefitsReduce and use selectively4. Marketing Mix Modification:

- Prices - Distribution - Advertising - Sales Promotion & Personal Selling - ServicesDECLINE STAGE

Slow TobaccoRapid Typewriters

Decline because of consumer tastes Technology on competition.Often cling on because: - Hope Sales will improve - Contribution to other products - Revenue cover out of pocket expenses

Identify weak products market size, market share, price, costs, N.P & G.P

Determine marketing strategy: - Withdraw or stay (if others withdraw) - Increase investment - Decrease investment selectively - Milking - Divest quickly