Date post: | 12-May-2015 |
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Economy & Finance |
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PRODUCT LIFE CYCLE
Prepared By : HITESH BAID
Time
ProductDevelop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/Investments ($)
Sales andProfits ($)
Sales and Profits Over the Product’s Life From Inception to Demise
Product Life Cycle
Introduction stage
• Promotional expenditures are at their highest ratio to sales
• Decision has to be taken on being a pioneer or not
• Pioneer advantage Brand Recall The brand establishes the attributes the
product class should possess Producer advantage
Market Entry Strategy
Rapid Skimming Slow Skimming
Rapid Penetration
Slow Penetration
HIGH
LOW
P
R
I
C
E
LOWHIGH
PROMOTION
GROWTH• IMPROVES QUALITY AND ADDS NEW
PRODUCT FEATURE•ADDS NEW MODELS AND FLANKER
PRODUCTS• ENTERS NEW MARKET SEGMENTS•SHIFTS FROM PRODUCT AWARENESS
ADVERTISING TO PRODUCT PREFERENCE ADVERTISING
•LOWER PRICES
MATURITY
•GROWTH MATURITY• STABLE MATURITY• DECAYING MATURITY
STRATEGIES
•MARKET MODIFICATIONVOLUME = NO. OF BRAND USERS*USAGE RATE PER USERNumber of brand users converting non users into users entering new market segments winning competitor’s customers
The Indian Chapter
The Challenge
•Get people accustomed to chocolates- primarily seen as a western taste
•Do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself
CDM in the 80’s•Brand was considered as a surrogate of
parental affection for their children
•The chocolate goodness (appetite appeal) was being harnessed
The Expression
CDM positioned as ‘The perfect expression of
parental love’
‘Sometimes a Cadbury can say it better than words’
Category audits in early 1990’s
•Chocolate are meant for kids only•Seen as an indulgence product•Negative associations
▫Too much was bad▫Bad for health
Key Issue
With communication consciously addressing kids, consumption also got
restricted within the same segment resulting in brand stagnation
Marketing Challenge
To expand the consumer base by making CDM aspirational and desirable
to the adult segment
Communication TaskTo increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free.
Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings.
What was the consumer saying??
Extensive brand audits on the consumer pulse revealed that Cadbury Dairy Milk moments were spontaneous, carefree,
special, real moments.
So, what if these ‘moments’ were brought back to life even for adults?
The atmosphere at that time…
The new resurgent India.
The era of globalization had sowed the seeds of ‘I wanna break free’ syndrome
Avenues for freedom for expression were more than welcome
Increasing brand usage
• use the product on more occassions• use more of the product in each occasion•Use the product in new ways
Heinz EZ Squirt