Development

Introduction

Growth

Maturity

Decline

Introduction To Product Life Cycle

The Product Life Cycle Model

The Product s Life Cycle period usually consists of five major steps or phases: Product development, Product introduction, Product growth, Product maturity and Product decline

Product Development
Product development phase begins when a company finds and develops a new product idea. This involves translating various pieces of information and incorporating them into a new product. A product is usually undergoing several changes involving a lot of money and time during development, before it is exposed to target customers via test markets. Those products that survive the test market are then introduced into a real marketplace and the introduction phase of the product begins. During the product development phase, sales are zero and revenues are negative. It is the time of spending with absolute no return.

Introduction Phase
The introduction phase of a product includes the product launch with its requirements to getting it launch in such a way so that it will have maximum impact at the moment of sale. Large expenditure on promotion and advertising is common, and quick but costly service requirements are introduced In this phase distribution arrangements are introduced Having the product in every counter is very important and is regarded as an impossible challenge Product pricing usually follows one or two well structured strategies

Growth Phase
The growth phase offers the satisfaction of seeing the product take-off in the marketplace A frequent modification process of the product is an effective policy to discourage competitors from gaining market share by copying or offering similar products. Promotion and advertising continues, but not in the extent that was in the introductory phase and it is oriented to the task of market leadership and not in raising product awareness This period is the time to develop efficiencies and improve product availability and service

Maturity Phase
When the market becomes saturated with variations of the basic product, and all competitors are represented in terms of an alternative product, the maturity phase arrives This period is the period of the highest returns from the product. During this period new brands are introduced even when they compete with the company s existing product and model changes are more frequent Pricing and discount policies are often changed in relation to the competition policies The battle of distribution continues using multi -distribution channels

Decline Phase
A Product decline is accompanied with a decline of market sales Time to start withdrawing variations of the product from the market that are weak in their market position Distribution is narrowed

AND MY PRODUCT

Development Phase
Once upon a time, people could only dream of being able to travel via air. Traveling by airlines was considered a status symbol as the prices were out of reach of the common man and only major cities were connected through it Domestic airlines are today seen as the most preferred way of traveling within the country as it is faster and has become pocket friendly' for the common man The services are not compulsory for the passengers. This makes air travel more affordable as the passengers are not forced to pay for the services which they do not want to avail The popularity of SpiceJet Domestic Airlines is due to lot of factors such as low air fares, linking of both small as well as big cities via its services availability of seats etc

Introduction Phase
SpiceJet Is A low-cost airline Headquartered In Gurgaon , India . It Began Service In May
2005 And By 2008, It Was India's Second-Largest Low-Cost Airline . In Terms Of Market Share SpiceJet Was Voted As The Best Low-Cost Airline In South Asia And Central Asia Region By Skytrax In 2007. It Was Formed By Ajay Singh, Sanjay Malhotra And The Kansagra Family On 15 July 2008 Billionaire Wilbur Ross Suggested He Would Invest 345 crore (US$69.97 Million) In The Airline SpiceJet s Mission Is To Become India s Preferred Low-Cost Airline, Delivering The Lowest Air Fares With The Highest Consumer Value, To Price Sensitive Consumers. From Aircraft To Crew And Ground Staff The Focus Is On Performance. Each SpiceJet Employee Is Groomed To Be Smart, Friendly, Efficient And Well-Informed, Ensuring That Any Interaction Will Make You Feel Welcome And Looked After

Growth Phase
The Company had a fleet of five aircraft at the start of the fiscal, which was scaled up to 11 aircraft by the fiscal end. The airline carried over 2.61 million guests during June 2006 to March 2007, and enjoyed a market share of over 8%. The on-time performance is amongst the best in India, at 82%, coupled with a Technical Dispatch Reliability of 99.6%, making it an airline with the least cancellations. SpiceJet's new generation fleet of 15 Boeing 737-800 / 737-900ER aircraft are backed by cutting edge technology and infrastructure to ensure the highest standards in safety and operating efficiency. With 125 flights to 19 destinations daily and impeccable standards of hospitality, SpiceJet is hugely popular and flies over 5,00,000 people in month

Maturity Phase
As a reaffirmation of focused commitment to passenger comfort and satisfaction, They have been voted the best low fare airline in the HT MaRS study for 2009. Spice Jet has been given the highest satisfaction ratings on key parameters covering the efficiency of their ground services and the warmth and friendliness of their in-flight services, putting them way ahead of IndiGo, JetLite, Kingfisher Red and GoAir. The most preferred airline out of Chennai and Delhi, ahead of full service carriers like Jet Airways and Kingfisher The Hindustan Times MaRS consumer survey was carried out amongst 1,330 flyers who had taken at least four flights over the past year. The survey was conducted across 10 cities - Delhi, Lucknow, Kolkata, Guwahati, Mumbai, Pune, Ahmedabad, Chennai, Bangalore and Hyderabad.

Decline Phase
Spice jet, which posted a loss in the quarter ending June, after reporting profits for nearly two years, is expected to extend its losing streak. Spice jet carriers are expected to post losses of about Rs 750 crore, according to a recent Economic Times report. Carriers continued to price their tickets below cost and offering 15-50 percent discounts on tickets as they try to undercut the competition. Irrational pricing adds to the burden of turning a profit. Foreign investment declined from 10.16 percent to 6.17 percent at the end of September.

TOWS Analysis
STRENGTH
Entered with Rs. 99 fares for first 99 days. offering low everyday spicy fares Fleet of 6 Boeing 737-800 with 189 Seats

OPPORTUNITIES
Future Fleet Expansion will increase its Market Share. Attractive fares and up to date Quality service will generate a huge customer base comprising frequent flyers.

WEAKNESS
A fixed-cost perishable product. Limited sectors (Concentrated at only North-West- South Indian Sector) Small Load Efficiency compared to Air Deccan

Tax holiday on aircraft leasing The Union Budget of the Government of India announced in June 2004, announced a 5year tax holiday on aircraft leasing.

THREATS
High Attrition Rate Killer competition The Indian skies are witnessing a bloody battle for market share. A much anticipated fare war has broken out across Indian skies.

Thank You !!