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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

    Email

    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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