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01 Product Life-Cycle

This document discusses product life cycles and provides examples. It summarizes: 1) Product life cycles typically follow an introduction, growth, maturity, and decline pattern over time as represented by a basic graph. 2) Examples are given of different product categories and forms that have followed this pattern, such as audio/video transitioning from cassettes to CDs/DVDs and pens transitioning from angular to ball point. 3) Marketing strategies are outlined for each stage of the product life cycle, such as using high promotion and prices in introduction and modifying products and marketing in maturity.

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ramanrockstar21
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2K views11 pages

01 Product Life-Cycle

This document discusses product life cycles and provides examples. It summarizes: 1) Product life cycles typically follow an introduction, growth, maturity, and decline pattern over time as represented by a basic graph. 2) Examples are given of different product categories and forms that have followed this pattern, such as audio/video transitioning from cassettes to CDs/DVDs and pens transitioning from angular to ball point. 3) Marketing strategies are outlined for each stage of the product life cycle, such as using high promotion and prices in introduction and modifying products and marketing in maturity.

Uploaded by

ramanrockstar21
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:

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

1
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 Tata, DCM
MAN Ashok Toyota,
Leyland Matador

2
Various Product Life Cycle
Patterns

Example:
a) b) c)

3
Marketing Strategies:
Introduction Stage
High Promotion Low Promotion
Level Level
High Rapid Slow Skimming
Price Skimming

Low Price Rapid Slow Penetration


Penetration

4
Marketing Strategies:
Growth Stage
 Growth stage for Mahindra & Mahindra’s Scorpio –
Sales of 3,794 units in Aug. 06 (20% increase)
 What is being done to the product?
 Quality Improvement, Addition of new features, Improved
Styling: New version of Scorpio launched on 13th March 2006.
 Add New Models: Scorpio Turbo Diesel CRDe
 Enter new market Segments: Russia, South Africa
 Increase Distribution Coverage: 275 dealers at present
 Prices are lowered: New improved Scorpio without any price
change
 Shift from product awareness to product preference ads.
5
6
Maturity Stage
 Three phases of this stage are:
 Growth (Sales growth rate starts to decline) Eg:

 Stable (Sales flatten) Eg:

 Decaying Maturity (Absolute level of sales


starts to decline) Eg: LML Bikes

7
Marketing Strategies:
Maturity Stage
 Market Modification:
 Volume = No. of Brand Users*Usage rate/user
 Expand No. of Brand Users:
 Convert Nonusers: Eg – Competitive pricing
 Enter New Market Segment: Eg - International Flights

 Win Competitors’ Customers: Eg – Better service

 Increase usage of Brands:


 Use Product More Frequently: Eg – FFP
 Using more product on each occasion: Eg - Reduced
fares for spouse
 Varied Uses: Eg – More Destinations
8
Marketing Strategies:
Maturity Stage
 Product
Modification
 Quality Improvement
 Feature Improvement
 Style Improvement

 Marketing-Mix
Modification
 Maruti 800

9
Marketing Strategies:
Decline Stage
 Harvest

 Divest
 LML’s decline

10
Critique of PLC:
 PLC too varied in shape & duration
 Cannot be used as a forecasting tool
 Problem in telling what stage a product
is in

11

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