2. Introduction
A product is introduced among consumers, and if
consumers perceive it as meeting their needs and want, it
experiences a period of growth. Subsequently, it reaches
the stage of maturity and when it loses its appeal, its
decline starts and eventually is may be taken off the
market (demise). The classical product life cycle curves
are depicted as “S” shaped and generally divided in four
stages: Introduction, growth, maturity, and decline.
3. Common Product Life Curves
Sale Sales
Sales
s
Time Time Time
(a) Growth-Decline (b) Cycle-Recycle Pattern (c) Innovative Maturity or
l plateau Scalloped Pattern
4. Common Product Life Curves
Sales
Profits
Loss
Introduction Growth Maturity Decline
Time
(d) Classical Life Cycle Pattern
5. Introduction Stage
The introductory stage is viewed as fairly risky and quite expensive
because large amounts of money is spent on advertising and other
tools of marketing communications to create consumer awareness
in sufficiently large numbers, and encourage trial.
3D Televisions: 3D may have been around for a few decades, but
only after considerable investment from broadcasters and
technology companies are 3D TVs available for the home,
providing a good example of a product that is in the Introduction
Stage.
6. Introduction Stage of the
PLC
Sales Low sales
Costs High cost per customer
Profits Negative
Create product awareness
Marketing Objectives
and trial
Product Offer a basic product
Price Use cost-plus
Distribution Build selective distribution
Build product awareness
Advertising among early adopters and
dealers
7. Growth Stage
The growth stage of life cycle is characterised by a sharp rise
in sales. Only a small percentage of new products introduced
survive to reach the growth stage.
Tablet PCs: There are a growing number of tablet PCs for
consumers to choose from, as this product passes through the
Growth stage of the cycle and more competitors start to come
into a market that really developed after the launch of Apple’s
iPad. Another example is NANO car.
8. Growth Stage of the
PLC
Sales Rapidly rising sales
Costs Average cost per customer
Profits Rising profits
Marketing Objectives Maximize market share
Product Offer product extensions,
service, warranty
Price Price to penetrate market
Distribution Build intensive distribution
Advertising Build awareness and interest
in the mass market
9. Maturity Stage
Most products after surviving competitive battles, winning
customer confidence and successful through growth phase enter
their maturity stage. The sales plateau, and this flattening of
sales usually lasts for some time because most products in the
category have reached their maturity stage, and there is stability
in terms of demand, technology, and competition.
Laptops: Laptop computers have been around for a number of
years, but more advanced components, as well as diverse
features that appeal to different segments of the market, will help
to sustain this product as it passes through the Maturity stage.
10. Maturity Stage of the PLC
Peak sales
Sales
Costs Low cost per customer
Profits Maximize profit while
High profits
defending
Marketing Objectives market share
Product Diversify brand and models
Price to match or best
Price competitors
Build more intensive
Distribution
distribution
Advertising Stress brand differences and
benefits
11. Decline Stage
Decline stage sets in when customer preferences change due to the
availability of technologically superior products and consumers’ shift in
values, beliefs, and tastes to products offering more value.
12. Decline Stage of the PLC
Declining sales
Sales
Low cost per customer
Costs
Declining profits
Profits
Reduce expenditure and milk
Marketing Objectives the brand
Phase out weak items
Product
Cut price
Price Go selective: phase out
Distribution unprofitable outlets
Reduce to level needed to
Advertising retain
hard-core loyal customers
13. Implications and Limitations of Product Life
Cycle Concept
Product life cycle concept shows a framework to spot the occurrence
of opportunities and threats in a product market and the industry. This
can help firms to reassess their objectives, strategies, and different
elements of marketing programme.
14.
15. Introduction- HUL
Hindustan Unilever Limited (HUL) is India's
largest FMCG company, touching the lives of
two out of three Indians with over 20 distinct
categories in home & personal care products
and food & beverages.
16. INTRODUCTION-LUX
1960
LUX went
colored
1929
LUX
launched in
1925 India
LUX launched
in USA as
1916 Toilet soap
LUX launched
in USA as
Laundry soap
18. Introduction (1929- 1950s)
Company Objectives Actions
Sales Low
Cost of manufacturing High
Profits Negative
Marketing Objective Create product awareness in
major cities
Product strategy Offer a basic product
Price strategy Higher than Lifebuoy
Distribution Created network in major
cities
Advertising strategy Awareness among early
adopters.
19. Growth- (1950s- 1990s)
Company Objectives Actions
Sales Rising Sales
Cost of manufacturing Average cost reduction
Profits Positively increasing
Marketing Objective Maximise market share
Product strategy Offer variants
Price strategy To penetrate the market
Distribution Intensive network in the
entire country
Advertising strategy Awareness an interest in
mass market
20. Maturity-(1990s to till date )
Company Objectives Actions
Sales Peak sales
Cost of manufacturing Low
Profits High
Marketing Objective Maximize profit while defending
market share
Product strategy Diversify brand
Price strategy To match the nearest competitor
Distribution More intensive focusing on rural
area
Advertising strategy Multiple brand ambassadors for
different variants.
Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes. Product Life Cycle Strategies Product Life-Cycle Strategies This CTR relates to the material on pp. 289 and 293.
Product Life-Cycle Strategies This CTR relates to the material on pp. 289-290 and 293. Product Life-Cycle Strategies Growth. In this stage the company experiences both increasing sales and competition. Promotion costs are spread over larger volume and strategic decisions focus on growth strategies. Strategies include adding new features, improving quality, increasing distribution, and entering new market segments.
Product Life Cycle Strategies Maturity. In this stage the company must manage slower growth over a longer period of time. Strategic decisions made in the growth stage may limit choices now. Marketing managers must proactively seek advantage by either market modification to increase consumption, product modification to attract new users (quality, feature, and style improvements), or marketing mix modification in an attempt to improve competitive position. Product Life-Cycle Strategies This CTR relates to the material on pp. 290-292 and 293.
Product Life-Cycle Strategies This CTR relates to the material on pp. 292-293. Product Life Cycle Strategies Decline. In this stage the costs of managing the product may eventually exceed profits. Rate of decline is a major factor in setting strategy. Management may maintain the brand as competitors drop out, harvest the brand by reducing costs of support for short term profit increases, or drop the product (divest) altogether.
