9 prod lifecycle

7/28/2019 9 Prod Lifecycle

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INDO GERMAN TRAINING CENTRE

MAHAJAN SAMANT

To assert four things :

PRODUCT LIFE CYCLE STRATEGIES

1) Products have limited life.

2) Product Sales Passes throughdistinct stages.

3) Profits rise and fall at differentstages.

4) Products require different functionalstrategies.

Product has P.L.C.




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Time

Sales

&

Profits

Profit

Introduction Growth Maturity

Decline

Sales




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S

a

l

e

s

V

o

lu

m

e Time

Growth – Slump – Maturity

Pattern*

{Kitchen

Appliances}

S

al

e

s

V

o

lu

m

e Time

Cycle – Recycle Pattern*

{New Drugs}

S

al

e

s

V

o

lu

m

e Time

{Nylon Fibre}

Scattered Pattern*

* 6 to 17 different patterns

• Product Category. . . . . . . . . Liquor Cigarette

• Product Form. . . . . . . . . . . . White Liquor Filtered

• A product. . . . . . . . . . . . . . .Vodka White or Colour




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Home Décor

Clothing

Art

{Budgeting,Costing Methods}

S

al

e

s

V

o

lu

m

e Time

STYLE

S

al

e

s

V

o

lu

m

e Time

FASHION

S

al

e

s

V

o

lu

m

e Time

FAD

Saree

Dress Material

Jewellery

{2BB}

Stitch Shirts BellBottom Trousers

{FEMM}




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I. Introduction Stage1. Inform potential consumer.

2. Induce product trial.

3. Secure distribution in retail.

• Rapid Skimming

• Slow Skimming

• Rapid Penetration

• Slow Penetration

Profits

–ve

OR

Low.

Price

High

High

Low

Low

Promotion

High

Low

High

Low



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MAHAJAN SAMANT

The Pioneering Advantage Brand Preference

The Competition Cycle

• Sole Supplier

• Competitive Penetration

• Share stability

• Commodity Competition

• Withdrawal Begins




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II. Growth Stage1. Improved in product quality, add new product

features, improved styling etc.

2. New models & flanker products (diff. Size,

flavor).3. Enters new market segment

4. Increases distribution coverage & enters newdistribution channels.

5. Advertising shift from product awareness to

product preference.6. Lower prices to attract next layer of price –

sensitive customers.




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III. Maturity Stage

1. Market ModificationA. To increase number of brand users.

i. Convert non users.

ii. Enter new market segment.

iii. With competitors customers.

B. To increase present usage of the brandi. To use the product more frequently.

ii. To use the product more on each occasion.

iii. Discover new product uses & more varied ways.


I. Growth

II. Stable

III. Decaying Maturity



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III. Maturity Stage2. Product Modification

A. Quality improvement – durable, speed, size etc.

B. Feature improvement

C. Style improvement3. Marketing Mix Modification

A. Prices

B. Distribution

C. Advertising

D. Sales PromotionE. Personal Selling

F. Services




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IV. Decline Stagei. Increase the firms investment.

ii. Maintain the firms investment

iii. Decrease the firms investment.

iv. Harvesting (milking) to recover cash.

v. Divesting business quickly.Also

a) Withdrawal from market.

b) Reduce number of products offered.

c) Withdrawal from smaller market segment.

d) Withdrawal from weaker trade channels.

e) Cut promotion budget.

f) Reduce price further.

g) Increase price and sure end.




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CRITIQUE1. PLC patterns are too variable in shape and

duration.

2. Lacks fixed sequence and stages.

3. Marketers can seldom tell the stage of PLC.4. PLC pattern is result of marketing strategies.


9 prod lifecycle

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