PowerPoint Presentation

Product Life cycleBy Ekta Amin(04)Abhijit Ghuge()Sanket Bhorade(23)Devesh Dhange(35)Nilam Dhurgude(38)2Unit 2Product Life CyclesProduct life cycles describe the changes in consumer demand over time. No product can be in demand forever. Trends, technology and lifestyles change, which affects consumer demand.The Product Life Cycle Concept is Based on Four PremisesProducts have a limited life.Product sales pass throughdistinct stages, each withdifferent marketingimplications.Profits from a product vary at different stagesin the life cycle.Products require different strategies at differentlife cycle stages.PLC Stages and Characteristics

Product Life-Cycle StrategiesProduct developmentIntroductionGrowthMaturityDeclineBegins when the company develops a new-product ideaSales are zeroInvestment costs are highProfits are negativePLC Stages Product Life-Cycle StrategiesProduct developmentIntroductionGrowthMaturityDeclineLow salesHigh cost per customer acquiredNegative profitsInnovators are targetedLittle competitionPLC Stages Product Offer a basic productPrice Use cost-plus basis to setDistribution Build selective distributionAdvertising Build awareness among early adopters and dealers/resellersSales Promotion Heavy expenditures to create trialMarketing Strategies: Introduction StageProduct Life-Cycle StrategiesProduct developmentIntroductionGrowthMaturityDeclineRapidly rising salesAverage cost per customerRising profitsEarly adopters are targetedGrowing competitionPLC Stages Product Offer product extensions, service, warrantyPrice Penetration pricingDistribution Build intensive distributionAdvertising Build awareness and interest in the mass marketSales Promotion Reduce expenditures to take advantage of consumer demandMarketing Strategies: Growth StageProduct Life-Cycle StrategiesProduct developmentIntroductionGrowthMaturityDeclineSales peakLow cost per customerHigh profitsMiddle majority are targetedCompetition begins to declinePLC Stages Product Diversify brand and modelsPrice Set to match or beat competitionDistribution Build more intensive distributionAdvertising Stress brand differences and benefitsSales Promotion Increase to encourage brand switchingMarketing Strategies: Maturity StageProduct Life-Cycle StrategiesProduct developmentIntroductionGrowthMaturityDeclineDeclining salesLow cost per customerDeclining profitsLaggards are targetedDeclining competitionPLC Stages Product Phase out weak itemsPrice Cut priceDistribution Use selective distribution: phase out unprofitable outletsAdvertising Reduce to level needed to retain hard-core loyalistsSales Promotion Reduce to minimal levelMarketing Strategies: Decline Stage

Dairy MilkCadbury chocolates was founded in 1824 by John Cadbury in Birmingham, UK.Launched Dairy Milk in 1905 in UK by George Cadbury.USP: Unique Milk chocolate that contains more milk with creamy taste.In 1948, it was launched in India.Target market: Kids to AdultsMajor competitors Amul, Nestle.Introduction1905 Cadbury launches Dairy Milk onto the market.1913 Dairy Milk becomes Cadbury's best selling line.Mid 1920s Dairy Milk becomes UK brand leader.1928 Fruit & Nut is introduced as a variation of Dairy Milk. The "glass and a half" advertising slogan is introduced.1933 Whole-Nut is added to the Dairy Milk family.1948 Cadbury Dairy Milk is sold in India.2004 Dairy Milk is re-launched with the new and modern pack design but with same recipe.2005 Cadbury Dairy Milk celebrates its 100th birthday.

TimelineLife Cycle19051990199420032010TimeSalesIntroductionGrowthMaturity20041998+40%-30%+36%1905 Cadbury launches Dairy Milk onto the market.Positioned as Unique Milk chocolate with far more milk and creamy taste.In the 1980s, it was positioned as the perfect expression of love,Sometimes Cadbury can say it better than words.During the early1990s, emphasised its international identity, the Real taste of chocolate.Re-positioning was done in 1994, to the free-child in every adult. IntroductionIn 1998, growth for the brand dealt with popularising consumption in a social context.Especially in more traditional settings like weddings. With the campaign Khaanein waallon ko khaanein ka bahana chahiye featuring Cyrus Broacha, Cadbury Dairy Milk aimed to substantially increase penetration levels. The campaign was launched in tandem with the award winning Kuchh khaas hai...campaign.The brand penetrated into smaller towns and sales volumes grew by 40%.GrowthThe Worm Controversy resulted in Cadburys brand image taking a beating.Sales declined up to 30%.They had to recall a batch of chocolates. Cadbury rebuilt the trust of people by launching project Vishwasin 2004.Redesign of Packaging.Focus shifted to taking the concept of Kuch Meetha Ho Jaaye further in 2004 with Amitabh Bachchan.In 2010, Shubh Aarambh ads that have brought back the old charm of Cadbury Dairy Milk with its very interesting insight of mixing the traditional with the new age.Maturity

StagesTime DurationIntroduction1995 - 2002Growth2002 - 2009Maturity2009 - 2011Decline2011 to till nowPRODUCT LIFE CYCLE OF NOKIA

4 PsINTRODUCTION ( 1995 2002)GROWTH ( 2002 2009 )MATURITY ( 2009 2011 ) DECLINE ( 2011 till now ) Entered India in 1995Sold both GSM & CDMA phonesLaunched 1st model Nokia 2110 with Nokia tune1st model capable of sending/receiving sms

Launched phones without external antennabetter features like games, alarm, ergonomic keypad, display etc.Launched models like N95 to compete with Apples i-phone

Launched touch screen modelsLaunched 1st Maemo 5 OS phone N-900Launched Qwerty+touch model N-97Focussed on E-series phones to compete with BlackberryUpgraded its Symbian OS with 3 & BelleShifted focus on Windows as its main OSLaunched 1st Windows phone, Lumia 800Used Symbian only in low end modelsPrice Skimmingstrategy Price - Rs. 22000 (approx.)3.Launched phones in the range of Rs. 15000 to 25000Followed Price skimming strategy in beginningLaunch price Rs. 21000/-Followed Price penetration Launched models ranging from Rs. 1000 to Rs. 30000Frequently reduced pricesPrice penetration strategy Had phones ranging from Rs. 1000 to Rs. 30000Reduction in price lead to deterioration in qualityNo discountgood backend profit to retailersNo any promotional scheme

Post-paid connections were given free discount on post-paid tariffsgood backend profit to retailers

Offered combo discountOffered music headset freeDuring festive occasions Reebok were given as gift with select modelsScratch cards were given

Companies distributed freebies During festive occasions Reebok were given as gift with select modelsTop 3 performing stores were givrn free tripsMore incentive to retailersIntroduction

6.Competed with the then market leader MotorolaGrowth Later-on in coming years, Nokia adopted Price penetration strategy

24Distribution channel

StagesTime DurationIntroduction2001 - 2006Growth2006 - 2011Maturity2011 till nowPRODUCT LIFE CYCLE OF SAMSUNG

4 PsIntroduction 2001 2006Growth 2006 2011Maturity 2011 till nowEntered india in 2001Launched very few models due to lesser demand & innovationLaunched 1st model samsung R220 with simple blue display.Competed with the then market leader motorola and nokia.Launched phones without external antennaHad better features like games, alarm, ergonomic keypad, color display etc.Wide range of simple or dual sim mobile marked beginning of growth stage Launched wide range of touch screen mobile phones to compete nokiaLaunched smart phones with android Galaxy seriesLaunched windows phones to compete nokia windows mobileFocussed on galaxy S series phones to compete with all the competitors

Followed penetration pricing strategy launched samsung R220 of rs.9000/- (apx.)Launched phones in the range of rs. 8000 to 20000Followed price penetration strategy in beginning of growth stageLaunch simple mobiles with price of rs. 2000 4000 Touch screen ( 9000 22000)Followed price penetration strategy to sustain growing competitionLaunched models ranging from rs. 6000 to rs. 60000Frequently reduced prices of popular & low end models Samsung follow discounting policy. (As par mobile phone)Offered a good amount of backend profit to retailersAdvertisement in print media

Pre-paid connections were given free with select any samsung modelsGifts (kitchen ware).Dealers & retailers got a large amount of backend profit to increase the sales & drive growth,Special offers on credit card payment for above price of rs. 20000 Tvc for galaxy series Discount couponsPrint media ( business magazines)

29Distribution channelComparison of Growth ratePLC Comparison

Founded:February 4, 2004,Cambridge ,Massachusetts, United States

Headquarter :Menlo Park, California.

In 2012, Facebook was valued at $104 billion, and by January 2014 its market capitalization had risen to over $134 billion. At the end of January 2014,1.23 billionusers were active on the website every month, while on December 31, 2013,945 millionof this total were identified by the company as mobile users.

Total revenue 7.87 billion

Total number of monthly active Facebook users :1,310,000,000

Total number of mobile Facebook users :680,000,000

Increase in Facebook users from 2012 to 2013 :22 %

Percent of all Facebook users who log on in any given day: 48 %

Average time spent on Facebook per visit : 18 minutes

Total number of Facebook pages : 54,200,000

India has crossed 100 million active users in India the second country, after the United States( as on 9th apr 2014-ET)Some stats

The first red flag : Facebook Sees Big Traffic Drops in US and Canada -Inside Facebook

US lost nearly 6 million users.

Canada also fell by 1.52 million.

Meanwhile, the United Kingdom, Norway and Russia all posted losses of more than100,000.

Revenue only from advertising

Most of the new users continue to come from countries that are relatively late in adopting Facebook.Most of the new users continue to come from countries that are relatively late in adopting Facebook, as has been the trend for the past year, explained Mr. Eldon.JD is the UKs leading retailer and distributor of fashionable sports and casual wear.

most innovative visual merchandiser of sportswear and branded fashion.

Founded in 1981 in Bury, in the North West of England

JD is proud of the fact that it provides its customers with the latest sport and athletic inspired fashion apparel and footwear, as well as fashion and outdoor clothing products and equipment from the very best brands

Maggi 2-minutes Noodles

Brand of instant Noodle made by Nestle India Ltd.Nestle launched Maggi for the first time in India in the year 1982. It took several years and lot of money for Nestle to establish its Noodles brand in India. Now it enjoys around 90% market share in this segment.

40High failure rates

No competition : NIL created an entirely new food category - instant noodles - in the Indian packaged food market

Frequent product modification

High marketing and production costs : NIL created an entirely new food category - instant noodles - in the Indian packaged food market

Promotion focuses on awareness and information Introductory StageSegmentationTargetingPositioningDifferentiationAgeKidsFast to cook good to eatTaste EatingHabitsYouth2-minute noodlesFlavoursLifestyle of urban familiesOffice goersTaste bhi health bhiPackagingWorking WomenHealth conscious peopleSTPD AnalysisPromotional campaigns in school. Advertising strategies: - focusing on kids. Conducting regular market researchAvailability in different packages: 50 gms. 100 gms200 gmsfamily packs (400gms.)

New product innovation according to the need of consumers: Veg. Atta Noodles. Dal Atta Noodles. Cuppa Mania. Market Penetration StrategiesIncreasing rate of sales: Changed the formulation of Maggi noodles in 1997.

Entrance of competitors: due to growing popularity of Top Ramen

Initial healthy profits: 10 yrs back it enjoyed around 50% market share in this segment which was valued at around 250 crores

Promotion emphasizes brand ads: In March 1999, NIL reintroduced the old formulation of the noodles, after which the sales revived. Growth StageDeclining sales growth

Saturated markets: Top Ramen, Chings, Yipee

Extending product line: Maggie Sauce, Taste maker, Maggie Aata noodles, Maggie Masala, Maggie Pasta etc

Heavy promotions to dealers and consumers :2 min mein Khushiyaan

Prices and profits fall

Maturity StageClassic Noodles :5 10 yrs.

Veg. Atta Noodles Health Conscious

Rice Mania Teenage

Cuppa Mania Office goers, Working women.STPD AnalysisLifebuoy

Introduced in 1895, officially sold from 1935

It was a brick size carbolic soap

Health & well being

Targeted at men and masculine health.IntroductionGerm killer soap.

Rural market

Strong promotion.

Growth Stagnant market share.

Same brand image.

Reached maturity on over hundred years of product existence.

Market share in carbolic segment was 95%MaturityIntroduction of new soaps with fragrances.Positioning of sanitary soap.Introduction of new germ killing soaps. Size & smell.Now it has become a family soapn easy grip and a modern look and various fragnances.MaturityTHANKYOU!!!