Competitive DynamicsWhat Marketing Strategies are

appropriate at each stage of the Product Life Cycle?

Product passes through different stages

Products have limited Life

Other PLC

Style Fashion Fad

Product Life Cycle Curve4 Stages of

Introduction

• Slow sales growth• Profits non-existent

STAGE 1

• Build product awareness• Use cost-plus basis• Conduct trials among early adopters• Build selective Distribution

Marketing Strategy

Growth

• Rapid market acceptance• Substantial Profits

STAGE 2

• Penetrating price Policy• Offer Product extension and services• Build intensive distribution• Build awareness in mass market

Marketing Strategy

Maturity

• Slowdown in sales growth• Increased competition• Profits stabilizes or Declines

STAGE 3

• Diversify brand and items• Price to match best competitor• Build more intensive distribution• Encourage brand switching• Stress Brand Differences and benefits

Marketing Strategy

Decline

• Sales show downward drift• Profit erodes

STAGE 4

• Phase out weak products• Cut prices• Phase out unprofitable outlets

Marketing Strategy

Introduction

Growth

Maturity

Decline

Introduction

Growth

Maturity

Decline

SUMM

ARY

These slides were created by Archit Raj, IIT Delhi, during a Marketing internship by Prof.

Sameer Mathur, IIM Lucknow (See www.IIMInternship.com )