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7/28/2019 9 Prod Lifecycle
http://slidepdf.com/reader/full/9-prod-lifecycle 2/12
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.
7/28/2019 9 Prod Lifecycle
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INDO GERMAN TRAINING CENTRE
MAHAJAN SAMANT
PRODUCT LIFE CYCLE STRATEGIES
Time
Sales
&
Profits
Profit
Introduction Growth Maturity
Decline
Sales
7/28/2019 9 Prod Lifecycle
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INDO GERMAN TRAINING CENTRE
MAHAJAN SAMANT
PRODUCT LIFE CYCLE STRATEGIES
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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INDO GERMAN TRAINING CENTRE
MAHAJAN SAMANT
PRODUCT LIFE CYCLE STRATEGIES
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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INDO GERMAN TRAINING CENTRE
MAHAJAN SAMANT
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
PRODUCT LIFE CYCLE STRATEGIES
7/28/2019 9 Prod Lifecycle
http://slidepdf.com/reader/full/9-prod-lifecycle 7/12INDO GERMAN TRAINING CENTRE
MAHAJAN SAMANT
The Pioneering Advantage Brand Preference
The Competition Cycle
• Sole Supplier
• Competitive Penetration
• Share stability
• Commodity Competition
• Withdrawal Begins
PRODUCT LIFE CYCLE STRATEGIES
7/28/2019 9 Prod Lifecycle
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MAHAJAN SAMANT
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.
PRODUCT LIFE CYCLE STRATEGIES
7/28/2019 9 Prod Lifecycle
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MAHAJAN SAMANT
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.
PRODUCT LIFE CYCLE STRATEGIES
I. Growth
II. Stable
III. Decaying Maturity
7/28/2019 9 Prod Lifecycle
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MAHAJAN SAMANT
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
PRODUCT LIFE CYCLE STRATEGIES
7/28/2019 9 Prod Lifecycle
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MAHAJAN SAMANT
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.
PRODUCT LIFE CYCLE STRATEGIES
7/28/2019 9 Prod Lifecycle
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MAHAJAN SAMANT
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.
PRODUCT LIFE CYCLE STRATEGIES