Product Life-Cycle-Sales & Profit:

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 Examples of Product Life-Cycle:
Introduction Growth Maturity Decline

Product Audio/Video DVDs VCDs/CDs Video/Audio

Category ipods Cassettes

Product Angular Gel Pens Ball Point Ink Pens

Form Pens Pens

Brands Actros, Volvo FM Tata 407, DCM

MAN & FH Ashok Toyota,
Leyland Matador
Ecomet
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Various Product Life Cycle
Patterns

Example:
a) b) c)

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 Marketing Strategies:
Introduction Stage
High Promotion Level Low Promotion Level

High Rapid Slow Skimming

Price Skimming

Low Rapid Slow Penetration

Price Penetra-
tion
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 Marketing Strategies:
Growth Stage
 Growth stage for Mahindra & Mahindra’s Scorpio –
Sales of 3,519 units in Sept. 07 vis-à-vis 3,333 in
Sept06
 What is being done to the product?
 Quality Improvement, Addition of new features, Improved
Styling: New version of Scorpio launched on 28th Sept. 2007.
 Add New Models: Scorpio Getaway
 Enter new market Segments: Russia, South Africa
 Increase Distribution Coverage: 275 dealers at present
 Prices are lowered: Getaway priced at Rs7.13 lakh to Rs8.18
lakh vis-à-vis Rs 8.33 lakh to Rs 9.72 lakh for other variants
 Shift from product awareness to product preference ads.
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 Maturity Stage
 Three phases of this stage are:
 Growth (Sales growth rate starts to decline) Eg:
Tata Indigo sold 3,436 units Feb ’07 (7% increase over
Jan ’07 but less than Feb ’06 over Jan ’06 increase)

 Stable (Sales flatten) Eg: Honda CRV sold 1858

units in ’05-06 and 1,873 units in ’06-07

 Decaying Maturity (Absolute level of sales starts

to decline) Eg: Maruti 800 sold 5,221 units in Sept ‘07
(32% y-o-y decline)
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