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PRODUCT LIFE CYCLE
PRESENTED BY :ANKI T GUPTA0 5 - M B A - 1 3
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WHAT IS A PRODUCT?
A PRODUCT is anything that can be offered to a market usu allyto s a t is fy a want or need
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PRODUCT LIFE CYCLE
Every PRODUCT has a life cycle and asserts four thingsabout a PRODUCT:
PRODUCTS have a limited lifePRODUCT sales pass through different stages each posingdifferent challenges, opportunities n problems to the sellerProfits rise n fall at different stagesPRODUCTS require different marketing, financial,purchasing strategies at each stage
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STAGES IN PRODUCT LIFE CYCLE
Introduction Stage
Growth StageMaturity StageDecline Stage
PLC shows the stages that products go throughfrom Introduction to withdrawal from the market.
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INTRODUCTION STAGE
No Competition
Low Sales Volume
Negligible ProfitsCreation of Demand
High Cost
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GROWTH STAGE
Increase in Demand
Increase in Market Share
Sales Volume IncreaseProfit Rise
Entry of Competitors
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MATURITY STAGE
Avoid Shrinkage of Sales Volume &Usually lasts longer than previousstages
Divided into three phases:1. Growth-sales growth rate starts
to decline2. Stable-sales flatten becoz of
market saturation3. Decaying maturity-the absolute
level of sales begin to declineand customers start switchingto other products
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EXAMPLE: MAGGI NOODLES
Stage 1: IntroductionLaunched in India in 1982 keeping in mind workingwomen and children.Pioneer in instant noodle market.
Low PriceBAS 2 MINUTE
Stage 2: Growth
Sales Incresed50% Market ShareNo 1 BrandGOOD TO EAT FAST TO COOK
Entry of aCompetitor
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REINTRODUCTION OF MAGGI NOODLE
Reintroduced in 1999
Increased Distribution
Focus on new segments of Society
New & Interesting TV Commercial
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MARKETING STRATEGY-INTRODUCTIONPHASE
1. Rapid-skimming strategy high price/highpromotion).
2. Slow-skimming strategy high price/lowpromotion).
3. Rapid-penetration strategy low price/high
promotion).4. Slow-penetration strategy low price/low
promotion).
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MARKETING STRATEGY-GROWTHPHASE 1. Improve service quality and add new service
features and elements2. Enter new market segments3. Use new channels of distribution4. Lower prices to attract more price-sensitive
customers
5. Shift from product awareness advertising toproduct-preference advertising
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MARKETING STRATEGY-MATURITYPHASE
1. Market-modification strategy Increase frequency use by current consumers
Look for new target market
2. Product-modification strategy Quality improvement Feature improvement
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MARKETING STRATEGY-DECLINE
PHASE 1. Reduce cost2. Reduce price
3. Phase out weak items4. Include special offers
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PROBLEMS OF PLC
Many products do not conform to the traditional product life
cycle pattern. They fluctuate with economy
It is difficult to find the stage of PLC in which the product iscurrently placed, a product may stay for long or short period ina particular stage and may or may not pass through all thestages of PLC
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INTRODUCTION GROWTH MATURITY DECLINE
Third generationmobile phones
Portable DVDPlayers
PersonalComputers Typewriters
E-conferencing
Faxes Handwritten
letters All-in-one racingskin-suits
Breathablesynthetic fabrics Cotton t-shirts
Shell Suits
iris-based personalidentity cards Smart cards
Credit cards Chequebooks
EXAMPLES:
Product life cycle.
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