PRODUCT LIFE CYCLE

AND VARIOUS
STRATEGIES

SUBMITTED TO: -
DR. ABHISHEK MENDIRATTA
SUBMITTED BY: -
KOMAL GURJAR (A20180322002)
SUMAN SINGHA (A20018222003)
DIMPLE BHATI (A2034932208)
PRODUC
T LIFE
CYCLE
AND
CONTENT
VARIOUS
STRAGTE
.GIES

• INTRODUCTION
• PRODUCT LIFE CYCLE STAGES
• ADVANTAGES
• LIMITATIONS
• EXAMPLES OF PRODUCTS
LIFE CYCLE
• PRODUCT LIFE CYCLE
VARIOUS STRATEGIES

2
 What Is The Product
Life Cycle ?

• A product life cycle is the amount of time

a product goes from being introduced
into the market until it's taken off the
shelves

• There are four stages in a product's life

cycle—introduction, growth, maturity,
and decline

• The concept of product life cycle helps

inform business decision-making, from
pricing and promotion to expansion or
cost-cutting.

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 How the Product Life Cycle Works

1. New Arrival: The product is

introduced to the market, and not
many people know about it yet.
1. Introduction Stage 2. Gaining Popularity: More and more 2. Growth Stage
people start buying the product, and it
New product, low becomes really popular.
Product becomes
sales. popular, sales increase.
3. Established and Stable: The product
reaches its peak popularity, and many
people already have it. Sales stay
3. Maturity Stage steady. 4. Decline Stage
4. Fading Away: Over time, people start
Sales stabilize at a high Sales decrease as
level. losing interest in the product, and sales product loses
start to decline. popularity
Introduction Stage
The introduction stage in marketing
management refers to the initial phase of a
product's life cycle when it is first introduced to
the market. During this stage, companies focus
on building awareness, generating interest, and
establishing a market for the new product.
KEY FEATUERS
1. Launch: The product is introduced to the
market for the first time.
2. Limited Sales: Sales are typically low as the
product is new and not many people are aware
of it yet.
3. Marketing Efforts: Companies invest
heavily in marketing and promotion to create
awareness and generate interest in the product.
4. High Costs: The costs associated with
product development and marketing are usually
high during this stage.
5. Limited Competition: Since the product is new,
there may be limited competition, giving the
company an opportunity to establish a foothold in
the market.
6. Price Strategy: Companies may set higher
prices initially to cover their costs, but prices
may be adjusted as the product gains traction.
 Growth Stage
In this stage, sales begin to increase rapidly as consumer
demand grows. Marketing efforts focus on expanding
market share and solidifying the product's position within
the market. Competition may intensify as other
companies enter the market with similar offerings.
Profitability tends to improve as sales volume increases.
KEY FEATUERS
1. Increasing Demand: Sales start to pick up as
more and more people become aware of and
interested in the product.
2. Market Expansion: The product gains
popularity and starts to penetrate new markets and
reach a wider audience.
3. Competitive Pressure: As the product becomes
successful, competitors may enter the market,
increasing competition.
4. Profitability: With increasing sales and
economies of scale, the product becomes more
profitable for the company.
5. Product Improvements: Companies may make
improvements or add new features to the product
based on customer feedback and market trends
6. Marketing Focus: Companies continue to invest
in marketing and promotional activities to sustain
and further accelerate growth.
 Maturity Stage
The maturity stage is characterized by a slowdown
in sales growth as the market becomes saturated.
Competition is fierce, leading to price competition
and pressure on profit margins. Companies may
focus on differentiating their product through
branding, product features, or customer service to
maintain market share.
KEY FEATUERS
1. Market Saturation: The market becomes
saturated with the product as it reaches its peak
level of demand. Most potential customers have
already purchased it.
2. Stable Sales: Sales growth slows down or
stabilizes during this stage, as the product has
already gained widespread acceptance.
3. Intense Competition: Competition becomes
fierce as multiple companies offer similar
products, leading to price wars and increased
marketing efforts.
4. Price Stability: Prices tend to stabilize during the
maturity stage, with companies focusing on
maintaining profitability rather than aggressive
price changes.
5. Market Segmentation: Companies start to
focus on specific market segments and target niche
audiences to maintain sales and differentiate
themselves from competitors.
 Decline Stage KEY FEATUERS

1. Decreasing Demand: The product experiences

a decline in demand as customer preferences shift
or new technologies emerge.
2. Market Saturation: The market becomes
saturated, and most potential customers have
already purchased the product or have switched to
alternatives.
3. Declining Sales: Sales steadily decrease, and
companies may struggle to maintain profitability.

4. Price Reductions: Companies may reduce prices

to stimulate sales, clear inventory, or attract
remaining customers.
In the decline stage, sales begin to decline due to
factors such as technological advancements, 5. Product Obsolescence: The product may
become outdated or replaced by newer, more
changes in consumer preferences, or the advanced alternatives.
emergence of substitute products. Companies 6. Limited
Efforts: Marketing
Companies may
may choose to either maintain the product with reduce marketing
promotional and
activities
minimal investment, reposition it in the market, since
longer a focus. is no
the product
or discontinue it altogether.
 Advantages of Using the Product Life
Cycle
 Strategic Planning: It helps businesses plan their product's journey from introduction to decline, allowing
for better decision-making and resource allocation.
 Market Insight: The life cycle provides valuable insights into market trends, customer preferences, and
competitive dynamics, helping businesses tailor their strategies accordingly.
 Product Development: By understanding the life cycle, businesses can continuously improve and innovate
their products to meet changing customer needs and stay ahead of the competition.
 Marketing Effectiveness: The life cycle enables businesses to develop targeted marketing campaigns at
each stage, maximizing their impact and reaching the right audience.
 Resource Optimization: It helps businesses allocate their resources effectively by identifying which stages
require more investment and which ones can be optimized for cost savings.
 Pricing Strategy: The life cycle guides businesses in setting appropriate pricing strategies at different
stages, considering factors such as market demand, competition, and perceived value.

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 Limitations of Using the Product Life
Cycle
• Simplified Representation: The life cycle is a simplified representation of a product's journey and may not
capture all the complexities and nuances of the market or product dynamics.
• Uncertain Duration: The duration of each stage in the life cycle can vary greatly depending on factors such
as market conditions, competition, and technological advancements. It's challenging to predict the exact
length of each stage.
• Limited Focus on Customer Needs: The life cycle primarily focuses on the product's performance and
market dynamics, potentially overlooking evolving customer needs and preferences.
• Lack of Flexibility: The life cycle assumes a linear progression from one stage to another, which may not
always reflect the reality of market fluctuations and unexpected changes.
• Neglecting Non-Traditional Products: The life cycle framework may not be as applicable to non-traditional
products or services that don't follow a typical life cycle pattern.
• Ignoring External Factors: The life cycle doesn't explicitly consider external factors such as economic
conditions, regulatory changes, or cultural shifts that can significantly impact a product's success.

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Examples of Product Life Cycles
 Smartphones
 Introduction: When smartphones were first introduced in India, they were considered a luxury item and
were mainly adopted by early tech enthusiasts and high-income consumers.

 Growth: With the entry of affordable smartphones and the expansion of mobile internet services,
smartphone ownership grew rapidly, reaching a broad segment of the population.

 Maturity: Currently, the smartphone market in India has reached maturity, with a wide range of brands and
models available to consumers. Competition is intense, and companies focus on innovation and price
differentiation to maintain market share.

 Decline: As technology evolves and new form factors or devices emerge, certain smartphone models may
decline in popularity or become obsolete.

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Examples of Product Life Cycles
 Instant Noodles
 Introduction: When instant noodles were first introduced to the Indian market, they were a novel and
convenient food option, primarily targeted at urban consumers.

 Growth: Instant noodles gained popularity rapidly due to their convenience, affordability, and varied flavors.
They became a staple food item in many households across urban and rural areas.

 Maturity: Instant noodles are now a ubiquitous food product in India, with multiple brands competing for
market share. The market is saturated, and growth rates have stabilized.

 Decline: Concerns about health and nutrition, as well as the emergence of alternative convenience food
options, may lead to a decline in consumption of instant noodles over time.

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 Product Life Cycle And
Various Strategies

The product life cycle (PLC) is a

concept used to understand the stages a
product goes through from introduction
to withdrawal from the market. Each
stage comes with its own set of
challenges and opportunities, and
companies often tailor their strategies
We can use various marketing strategies
in each stage to try to prolong the life
cycle of your products.

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 Product Introduction Strategies
This is the stage where the product is introduced to the market. Sales are typically low as consumers
become aware of the product.

Strategies -
• Rapid Skimming - launching the product at a high price and high promotional level.
• Slow Skimming - launching the product at a high price and low promotional level.
• Rapid Penetration - launching the product at a low price with significant promotion.
• Slow Penetration - launching the product at a low price and minimal promotion.

During the introduction stage, you should aim to:

• Establish a clear brand identity.
• Connect with the right partners to promote your product.
• Set up consumer tests, or provide samples or trials to key target markets.
• Price the product or service as high as you believe you can sell it, and to reflect the quality level you are
providing.

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 Product Growth Strategies
Sales begin to increase as the product gains acceptance in the market. Competitors may enter
the market, leading to increased competition. Marketing strategies used in the growth stage
mainly aim to increase profits.

Strategies -
• Improving product quality.
• Adding new product features or support services to grow your market share.
• Entering new markets segments.
• Keeping pricing as high as is reasonable to keep demand and profits high.
• Increasing distribution channels to cope with growing demand.
• Shifting marketing messages from product awareness to product preference.
• Skimming product prices if your profits are too low.

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 Product Maturity Strategies
Sales reach their peak and begin to stabilize. Competition is intense, and market saturation may
occur. This often means that your market will be saturated and you may find that you need to
change your marketing tactics to prolong the life cycle of your product.

Strategies -
• Market Modification - This includes entering new market segments, redefining target markets,
winning over competitor's customers, converting non-users
• Product Modification - For example, adjusting or improving your product's features, quality,
pricing and differentiating it from other products in the marking
• Cost-cutting measures may be implemented to maintain profitability.
• Pricing strategies may involve discounting to maintain market share or value-based pricing to
differentiate the product.

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 Product Decline Strategies
Sales begin to decline due to changes in consumer preferences, technological advancements, or
the introduction of superior alternatives.

Strategies -
• Decide whether to maintain, harvest, or divest the product.
• Reduce marketing expenditures and focus on profitability.
• Consider product redesign or repositioning to extend the product's life cycle.
• Explore niche markets or international markets where demand may still exist.
• Price reductions may occur to liquidate remaining inventory.

Another option is for their business to discontinue the product from their offering. They may:
• Sell the brand to another business.
• Significantly reduce the price to get rid of all the inventory.

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