Paramjit Sharma

Product Life Cycle

The Concept

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 Cycle

PLC Stages

Introduction Growth Maturity Decline
Paramjit Sharma

Produc t 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
Not All Products Exhibits Bell Shaped PLC

7. Cycle-Recycle Pattern

13.Scalloped PLC

Paramjit Sharma

Product Life Cycle

PLC-other Patterns

Paramjit Sharma

Product Life Cycle

Style ,Fashion 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 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

Produc t 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 • Growth Maturity –Sales Start Declining • Stable Maturity - Saturation • 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 • • • Convert Non Users Enter New Segments Win Competitors Customers 4 Frequent Use-Juice 5 Using More -Shampoo 6 New Uses— Food Recipes

Paramjit Sharma

Produc t 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

Advertising
•Increasing Exp •Message •Timing •Frequency

Sales Promotion Stepping Up Or Reducing

Personal Selling Quality Of Sales Force Sales Territories Paramjit Sharma

Services Speed Tech. Assistance

Produc t 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
ai n ni g

Marketing Strategies- Decline
Firms Cut Adv Expenses
Withdraw From

R

em

Sales Decline Small Firms Leads To

Withdraw

Reduce Number Of Products

Smaller Market Segments Weak Trade Channels

Paramjit Sharma

Product Life Cycle

Marketing Strategies- Decline

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 Products

Paramjit Sharma

Product Life Cycle

Marketing Strategies- Decline

Handling
•System To Identify Weak Products •Establising Review Committee •Recommendation Of RC •Finding Exit Barriers

Ageing Products

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

No Fixed Too Variable Sequence In shape & Of Duration Stages

No Fixed Length Of Stages

Difficult To Anticipate Current Stage

Paramjit Sharma

Paramjit Sharma

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