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Paramjit Sharma

Product
Life The Concept
Cycle

Products Have Limited Life

Product Sales Pass Through Different Stages

Profits varies at Different Stages Of PLC’s

Products Require Different Strategies


at Each Stage

Paramjit Sharma
Paramjit Sharma
Paramjit Sharma
Product
Life
PLC Stages
Cycle

Introduction

Growth

Maturity

Decline
Paramjit Sharma
Produc
t
PLC Stages
Life
Cycle

Paramjit Sharma
Product
Life
PLC Stages
Cycle

Fax
Cell Phones
Bottled Water

Type Writers
News Papers

Type Writers
Paramjit Sharma
Product PLC-other Patterns
Life
Cycle

1. Growth-Slump –Maturity Pattern

Not All Products


Exhibits
Bell Shaped
PLC
7. Cycle-Recycle Pattern

Paramjit Sharma
13.Scalloped PLC
Product PLC-other Patterns
Life
Cycle

Paramjit Sharma
Product
Life
Style ,Fashion
Cycle And Fad Life Cycle

• Style- Distinctive mode Of Expression


Housing( Colonial)

• Fashion- Popular Style In Given Field


4 Characteristics- Distinctiveness, emulation, mass following ,decline

• Fad- Fashions that disappear Quickly


Rapid Acceptance & Decline

Paramjit Sharma
Product
Life
Style ,Fashion
Cycle And Fad Life Cycle

Paramjit Sharma
Product
Life
Marketing
Cycle Strategies--Introduction

Slow Growth
Expansion Of Production
Capacity
Technical Problems
Distribution Network
Customer Reluctance
Profits-Low/Negative

Paramjit Sharma
Product Marketing
Life Strategies- introduction
Cycle

One Of The 4 strategies Can Be Pursued

Rapid Skimming

Slow Skimming

Rapid Penetration

Slow Penetration
Paramjit Sharma
Produc Marketing
t Strategies-growth
Life
Cycle
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 Marketing
Life Strategies-maturity
Cycle

Maturity Stages

• Growth Maturity –Sales Start Declining

• Stable Maturity - Saturation

• Decaying Maturity –Absolute Level Decline


Customers Start Switching
Paramjit Sharma
Product Marketing
Life Strategies-maturity
Cycle

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 Marketing
Life Strategies- maturity
Cycle

Market Modification
Volume =no of brand users * Usage Rate Per User

Brand Users Can Be Expanded By

• Convert Non Users 4 Frequent Use-Juice

• Enter New Segments 5 Using More -Shampoo

• Win Competitors 6 New Uses— Food Recipes


Customers

Paramjit Sharma
Produc Marketing
t Strategies- maturity
Life
Cycle

Product Modification — Modifying product


Characteristics through quality ,feature ,Style Improvement

Quality Improvement Feature Improvement Style Improvement

Durability Size Aesthetic


Reliability Weight Appeal
Speed Materials
Taste Accessories
Restyling Packaging,
Stronger, Bigger, Safety, Versatility New Models of Cars
Plus convenience
Paramjit Sharma
Product Marketing
Life Strategies- maturity
Cycle

Marketing Mix Modification


Price Distribution Advertising
Cuts, Discounts
Spl. Occasions •Increasing Exp
More Outlets
Credit Terms •Message
New Distribution
Increase Price & •Timing
Channels
Quality •Frequency

Sales Promotion Personal Selling Services

Stepping Up Quality Of Sales Force


Speed
Or Sales Territories
Paramjit Sharma Tech. Assistance
Reducing
Produc Marketing
t Strategies- Decline
Life
Cycle

Sales Decline
 May Be slow
 May Be Rapid
 May Reach Zero
 May Petrify at Low Level

Paramjit Sharma
Product Marketing
Life Strategies- Decline
Cycle

•Tech. Advance •Leads to


Decline
In Sales •Shifts In Taste •Overcapacity
•Price Cutting
•Competition •Profit Erosion

Paramjit Sharma
Product Marketing
Life Strategies- Decline
Cycle

g
ni
n Cut Adv
ai Firms
em Expenses
R

Withdraw From
Sales Reduce
Decline Small Firms Withdraw
Leads To
Number Of Smaller
Products Market
Segments

Weak
Trade
Channels

Paramjit Sharma
Product Marketing
Life Strategies- Decline
Cycle

Hidden Costs

Waste Of Management Time


Frequent Price Adjustments
Short Production Run
Attention On Adv & Sales
Promotion
Cast Shadow On Company’s
Image
Delay Replacement of Product
Ageing
Paramjit Sharma
Products
Product Marketing
Life Strategies- Decline
Cycle

Handling

•System To Identify Weak


Products

•Establising Review Committee

•Recommendation Of RC

•Finding Exit Barriers


Ageing
Paramjit Sharma
Products
Product Marketing
Life Strategies- Decline
Cycle

Harrigan,s Strategies

Increasing Investments to Dominate

Maintaining till Uncertainties

Dropping Unprofitable Customer Groups

Harvesting (Milking)

Divesting Paramjit Sharma


Product Marketing
Life Strategies- Decline
Cycle

Harvesting
Gradually Reducing Product Cost

Reduce Product Cost, Sales Force


Services, Advertisement……

Paramjit Sharma
Product Marketing
Life Strategies- Decline
Cycle

Divest -
Looking For Buyers

Restage Or
Rejuvenate –
Adding Value To Original Product

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