Product Decisions PLC125

7/28/2019 Product Decisions PLC125

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Product decisionsProduct life cycle(PLC)



• Concept of Product life cycle(PLC)

• Stages of PLC-

1. Introduction stage

2.Growth stage

3.Maturity stage

4.Decline stage

• Marketing strategies in every stage of PLC• Examples

Content of topic (PLC)



Product Life Cycle

• product life cycle is the course of a

product’s sales and profits over time.

• product life cycle (PLC) deals with the

life of a product in the market with

respect to business or commercial costs

and sales measures.



Time

ProductDevelop-ment

Introduction

Profits

Sales

Growth Maturity Decline

Sales andProfits

Sales and Profits Over the Product’s Lifetime

Product Life Cycle & Its Stages



Sales

Costs

Profits

Marketing Objectives

Product

Price

Low

High cost per customer

Negative

Create product awareness and trial

Offer a basic product

Firm normally chooses Pricing strategy - mkt.penetration or mkt. skimming.

DistributionFew and selective distribution, securedistribution in retail outlets

Promotion High advertising, high promotion

Summary of Strategies-

Introduction Stage of the PLC



Examples

1.T-series mobiles

2.Horlicks foodles3.TVS Wego

4.TVS jive



5.Micra Car



Sales

Costs

Profits


Product

Price

Gradually rising

Average cost per customer

Gradually risingImprove pdt . quality, add new features,enter into new mkt segments, new D.C.

Offer extension, service, warranty

To persuade marketers brand Suitable pricing strategy & D.C.choice, price is slightly lowered to attract the next layer of pricesensitive buyers

Distribution Build intensive distribution

Promotion Slightly raised or remain the same ,to build faith


Growth Stage of the PLC



Examples

• Vim liquid dishwasher

• Dettol handwash

• Hippo

• Knor ready to cook

•CBZ extreme

http://4.bp.blogspot.com/_1pKvii0Z9Cs/Rb7eUQYyuyI/AAAAAAAAASA/7taCa3kZJF4/s1600-h/vim+range.jpg



Sales

Costs

Profits


Product

Price

Peak

Low cost per customer

High

Maximize profits while defending market share

Diversify brand and models

Match or best competitors

DistributionBuild more intensive ,selective, exclusivedistribution

PromotionIt should be cost effective to hold existing

customers

Summary of Strategies

Maturity Stage of the PLC



Marketing strategies during Maturity phase

1. Convert nonusers to users- e.g. All out tried to convert

mosquito repellant mat users to liquid vapourisers.

2. Enter new mkt. segments – L&T looking for overseas

market.

3. Win competitors customers- Pepsi & Coca-cola

4. More frequent use by suggesting various occasions of

the use of the product- SONATA Watches, Dairy Milk,

Amul Butter

5. More usage per occasion.



6. New & more varied uses of the same product- Milkmaid

apart from its use in tea & coffee can also be used as

ingredient of sweets.

7.Product modifications by increasing the functional

performance- Change in flavours like Maggi Tomato

sauce, plain, with chilli, etc.

8.Improving style-

9. S/C augmentation, image mktg. , & carving out a niche

within a specific mkt. segment become the critical tools

to retain the competitive edge.



Examples

• Scooty pep

• Splendor plus

• Colgate

• Cadbury

•Amul dairy products

• Lux soap



Sales

Costs

Profits


Product

Price

Declining

Low cost per customer

Declining

Reduce expenditures and milk the brand

Phase out weak items

Cut price

Distribution Selective: phase out unprofitable outlets

Promotion Reduce to minimum level


Decline Stage of the PLC



Example

• Fanta apple

• Hero honda glamour

• TVS flame

• TVS victor

•

Nirma beauty soap



Stage 1: Introduction

• Launched in India in 1982 keeping in mind

working population.

• women and children.

• Low Price

• “BAS 2 MINUTE”



Stage 2: Growth

• Sales Increased

• 50% Market Share

• No 1 Brand

• “GOOD TO EAT FAST TO COOK



Stage 3: Maturity

• Introduced new Variety

• Price Rs 5 Onwards

• Big Time Promotional Offers

•Slow Down In Sales

• Market Saturation



Stage 4: Decline

• Big Time Downfall in Sales

• Formulation Changed

• New products launched

•Failure

• Entry of a Competitor



Reintroduction of Maggi noodles

• Reintroduced in 1999

• Focus on new segments of Society

• Increased Distribution

• New & Interesting TV

Commercial using for

promotion

Product Decisions PLC125

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