PRODUCT LIFE CYCLE

Prepared By :
HITESH BAID
Product Life Cycle
Sales and Profits Over the Product’s Life From Inception to
Demise

Sales and
Profits ($) Sales

Profits

Time
Product Introduction Growth Maturity Decline
Develop-
ment
Losses/
Investments ($)
Introduction stage

• Promotional expenditures are at their highest

ratio to sales
• Decision has to be taken on being a pioneer or
not
• Pioneer advantage
 Brand Recall
 The brand establishes the attributes the
product class should possess
 Producer advantage
 Market Entry Strategy
HIGH LOW

HIGH
Rapid Skimming Slow Skimming
P
R
I
C
E Rapid Slow Penetration
LOW Penetration

PROMOTION
GROWTH
• IMPROVES QUALITY AND ADDS NEW
PRODUCT FEATURE
• ADDS NEW MODELS AND FLANKER
PRODUCTS
• ENTERS NEW MARKET SEGMENTS
• SHIFTS FROM PRODUCT AWARENESS
ADVERTISING TO PRODUCT PREFERENCE
ADVERTISING
• LOWER PRICES
MATURITY
• GROWTH MATURITY
• STABLE MATURITY
• DECAYING MATURITY
STRATEGIES
• MARKET MODIFICATION
VOLUME = NO. OF BRAND USERS*
USAGE RATE PER USER
Number of brand users
 converting non users into users
 entering new market segments
 winning competitor’s customers
The Indian Chapter
The Challenge
• Get people accustomed to chocolates-
primarily seen as a western taste

• Do so by reaching out to the masses in a

land where mindsets and preferences are as
diverse as the country itself
 CDM in the 80’s
• Brand was considered as a surrogate of parental
affection for their children
• The chocolate goodness (appetite appeal) was
being harnessed
The Expression
CDM positioned as
‘The perfect expression of parental love’

‘Sometimes a Cadbury can say it

better than words’
Category audits in early 1990’s
• Chocolate are meant for kids only
• Seen as an indulgence product
• Negative associations
▫ Too much was bad
▫ Bad for health
Key Issue
With communication consciously addressing
kids, consumption also got restricted within
the same segment resulting in brand
stagnation
Marketing Challenge
To expand the consumer base by
making CDM aspirational and desirable
to the adult segment
 Communication Task
To increase category relevance, give consumers
a taste of life the Cadbury Dairy Milk way -
real, fun and free.

Integrate the "real" chocolate of

Cadbury Dairy Milk to "real" feelings.
What was the consumer saying??
Extensive brand audits on the consumer pulse
revealed that Cadbury Dairy Milk moments
were spontaneous, carefree, special, real
moments.

So, what if these ‘moments’ were brought back

to life even for adults?
 The atmosphere at that time…
The new resurgent India.

The era of globalization had sowed the seeds of

‘I wanna break free’ syndrome

Avenues for freedom for expression were more

than welcome
Increasing brand usage
• use the product on more occassions
• use more of the product in each occasion
• Use the product in new ways
Heinz EZ Squirt