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Lec On 14aug - PLC

The document discusses product life cycles and provides the following key points: 1. Products pass through different stages of sales and profits as they move through their life cycle. 2. Strategies must be tailored to each stage, from introduction to growth, maturity, and decline. 3. Examples are given of product categories at different stages of their life cycles, from video ipods to VCDs.

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378 views7 pages

Lec On 14aug - PLC

The document discusses product life cycles and provides the following key points: 1. Products pass through different stages of sales and profits as they move through their life cycle. 2. Strategies must be tailored to each stage, from introduction to growth, maturity, and decline. 3. Examples are given of product categories at different stages of their life cycles, from video ipods to VCDs.

Uploaded by

shashankkapur22
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Product Life-Cycle

 Product life cycle asserts that:


 Products have a limited life
 Sales of the product pass through different
stages
 Profits rise and fall at different stages of
PLC
 Products require different strategies at
each stage of their life cycle

1
Product Life-Cycle-Sales & Profit:
I
G M D
N
R A E
Sales T
O T C
And R
W U L
Profit O
T R I Sales
D
H I N
U
T E
C
Y
T
I
O
N
Profit
Time

2
Examples of Product Life-Cycle:
Introduction Growth Maturity Decline

Product Video ipods DVDs VCDs Video


Category 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
Tata ACE
Ecomet
912 3
Various Product Life Cycle Patterns

Example:
a) b) c)

4
Marketing Strategies:
Introduction Stage
High Promotion Level Low Promotion Level

High Rapid Slow Skimming


Price Skimming

Low Rapid Slow Penetration


Price Penetra-
tion
5
Marketing Strategies:
Growth Stage
 Growth stage for Mahindra & Mahindra’s Scorpio –
Sales in FY 2007-08 up by 9% to 30,000+
 What is being done to the product?
 Quality Improvement, Addition of new features, Improved
Styling: Scorpio V series launched on 30th Nov. 2007, later
mHawk launched
 Add New Models: Scorpio Getaway, V series, mHawk
 Enter new market Segments: Russia, South Africa, US
 Increase Distribution Coverage: 275 dealers at present
 Prices are lowered: V-Series price 9.65 (Ex-Delhi), prices are
stable
 Shift from product awareness to product preference ads.
6
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