Paramjit Sharma

Paramjit Sharma
Product
Life
Cycle
The Concept
Products Have Limited Life

Product Sales Pass Through Different Stages

Profits varies at Different Stages Of PLCs

Products Require Different Strategies
at Each Stage
Paramjit Sharma
Paramjit Sharma
Paramjit Sharma
Product
Life
Cycle
PLC Stages
Introduction

Growth

Maturity

Decline
Paramjit Sharma
Product
Life
Cycle
PLC Stages
Paramjit Sharma
Product
Life
Cycle
PLC Stages
Fax
Cell Phones
Bottled Water
Type Writers
News Papers
Type Writers
Paramjit Sharma
Product
Life
Cycle
PLC-other Patterns
1. Growth-Slump Maturity Pattern





2. Cycle-Recycle Pattern





3. Scalloped PLC
Not All Products
Exhibits
Bell Shaped
PLC
Paramjit Sharma
Product
Life
Cycle
PLC-other Patterns
Paramjit Sharma
Product
Life
Cycle
Style ,Fashion
And Fad Life Cycle
1.Style- Distinctive mode Of Expression


2.Fashion- Popular Style In Given Field

3.Fad- Fashions that disappear Quickly
Housing( Colonial)
4 Characteristics- Distinctiveness, emulation, mass following ,decline
Rapid Acceptance & Decline
Paramjit Sharma
Product
Life
Cycle
Style ,Fashion
And Fad Life Cycle



Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies--Introduction
Slow Growth
Expansion Of Production
Capacity
Technical Problems
Distribution Network
Customer Reluctance
Profits-Low/Negative
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- introduction
One Of The 4 strategies Can Be Pursued
Rapid Skimming

Slow Skimming

Rapid Penetration

Slow Penetration
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies-growth
Improve Product quality, add features , improve styling

Adds new Models and flanker Products (New Features)

Enters New Market Segments

Enters New Distribution Channels

Shifts Adv. From Product Awareness to
Product Preference

Lowers Prices To Attract next Layer

Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies-maturity
Maturity Stages

1. Growth Maturity Sales Start Declining

2. Stable Maturity - Saturation

3. Decaying Maturity Absolute Level Decline
Customers Start Switching
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies-maturity
Sales Slow Down Leads To

Competition
Overcapacity
Increase In Promotion
Weak Competitors Withdraw
Giants Firms Dominate
Some Nichers
High Volume-Low Cost
Some Abandon Low Cost

Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- maturity
Market Modification
Volume =no of brand users * Usage Rate Per User


Brand Users Can Be Expanded By

1. Convert Non Users 4 Frequent Use-Juice

2. Enter New Segments 5 Using More -Shampoo

3. Win Competitors 6 New Uses Food Recipes
Customers
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- maturity
Product Modification Modifying product
Characteristics through quality ,feature ,Style Improvement
Quality Improvement

Durability
Reliability
Speed
Taste

Stronger, Bigger,
Plus
Feature Improvement

Size
Weight
Materials
Accessories

Safety, Versatility
convenience
Style Improvement

Aesthetic
Appeal



Restyling Packaging,
New Models of Cars

Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- maturity
Marketing Mix Modification
Price
Cuts, Discounts
Spl. Occasions
Credit Terms
Increase Price &
Quality
Distribution

More Outlets
New Distribution
Channels




Increasing Exp
Message
Timing
Frequency

Advertising
Sales Promotion

Stepping Up
Or
Reducing
Personal Selling

Quality Of Sales Force
Sales Territories
Services

Speed
Tech. Assistance
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Sales Decline
May Be slow
May Be Rapid
May Reach Zero
May Petrify at Low Level
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Decline
In Sales
Tech. Advance

Shifts In Taste

Competition
Leads to

Overcapacity
Price Cutting
Profit Erosion
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Sales
Decline
Leads To
Reduce
Number Of
Products
Withdraw From
Cut Adv
Expenses
Weak
Trade
Channels
Small Firms
Firms
Smaller
Market
Segments
Withdraw
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Ageing
Products
Hidden Costs

Waste Of Management Time
Frequent Price Adjustments
Short Production Run
Attention On Adv & Sales
Promotion
Cast Shadow On Companys
Image
Delay Replacement of Product
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Ageing
Products
Handling

System To Identify Weak
Products

Establising Review Committee

Recommendation Of RC

Finding Exit Barriers
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Harrigan,s Strategies


Increasing Investments to Dominate

Maintaining till Uncertainties

Dropping Unprofitable Customer Groups

Harvesting (Milking)

Divesting
Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline
Harvesting

Gradually Reducing Product Cost



Reduce Product Cost, Sales Force
Services, Advertisement



Paramjit Sharma
Product
Life
Cycle
Marketing
Strategies- Decline


Divest -
Looking For Buyers

Restage Or
Rejuvenate
Adding Value To Original Product

Paramjit Sharma
Too Variable
In shape &
Duration
No Fixed
Sequence
Of
Stages
No Fixed
Length Of
Stages
Difficult To
Anticipate
Current
Stage
Paramjit Sharma