PRODUCT LIFE CYCLE OF

MARKETING MANAGEMENT

Presentation by:

1.AVICK BISWAS

26/08/09

Doing well and doing good.

To make cleanliness commonplace, to lessen

work for women, to foster health and contribute

to personal attractiveness, that life may be

more enjoyable and rewarding for the people

who use our products.

William Hesketh Lever

“

”

INTRODUCTION TO PRODUCT LIFE CYCLE• The course of a products sales and profits over its lifetime is called the

product life cycle.

• PLC shows the stages that products go through from development to withdrawal from the market.

• Product Life Cycle (PLC):– Each product may have a different life cycle.

– PLC determines revenue earned.

– Contributes to strategic marketing planning

– To identify when a product needs support, redesign, renovating , withdrawal, etc.

PLC OF LUX SOAP• INTRODUCTION TO LUX:

• We all want to be pampered, to look and feel great And that's just what Lux offers you on a daily basis at a price you can afford.

• Lux is the brand of UNILEVER INDIA LTD. It has been winning hearts of INDIAN consumers for 80 years.

• Lux stands for the promise of beauty and glamour as one of India's most trusted personal care brands.

LUX PRODUCTS : Lux had modified their product into:

• Orchid touch Almond delight Energising fruit Aqua sparkle

“GLAMOUR FACTOR”

• Lux launched the world’s first mass-market beauty soap in the US in 1924 & had been launched in India in 1929.

• At that time there was only one competitor of Lux, which was from its own brand “LIFEBUOY”.

• In the initial stages Lux was introduced in the major cities of INDIA like Calcutta, Mumbai etc.

• MARKETING OBJETIVES - was to create the product awareness and to attract the

customers towards the product.

• The Lux MARKETING STRATEGIES in the initial stages :

• Product = They offer only on product in the market. They did not come up with the

differentiated product.

• Price = In the initial stages of the product, they offer the relatively higher price than their competitor (LIFEBUOY). Because, they want to recover their initial cost of making the product.

INTRODUCTION STAGE

• Advertising = In the initial stages, they allocate more advertising budget So that more and

more customers could be attracted towards the product. • In ads they targeted the early adopters, who were readiest to buy the product.• The first ambassador, Leela Chitnis.

Distribution = was selective and only covers the major cities of INDIA to get recognition in those cities.

• Their distribution channel was through: Manufacturer Wholesaler & Retailer

INTRODUCTION STAGE continued…

Introduction Stage of the LUX Introduction Stage of the LUX

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

Product StrategyProduct Strategy

Price StrategyPrice Strategy

Low sales Low sales

High cost per customerHigh cost per customer

NegativeNegative

Create product awareness in major cities in IndiaCreate product awareness in major cities in India

Offer a basic productOffer a basic product

Use cost-plus Use cost-plus

Distribution StrategyDistribution Strategy Build selective distributionBuild selective distribution

Advertising StrategyAdvertising Strategy Build product awareness among early adopters and dealers.

Build product awareness among early adopters and dealers.

• In the growth stage, their sales rapidly started rising. • They have expanded their market to the other cities of INDIA.

• MARKETING OBJECTIVES = The marketing objectives of the Lux were to expand their

market to the other cities of INDIA. • Another objective was to maximize more market share.

  • In the growth stage, company had the following MARKETING STRATEGIES :

• Product = In the growth stage, the company had offered the same product in the market.

• Price = In this stage, the company had changed their price to some extent because of

maximizing the market share. ( Slightly cut down the prices )

• Advertising = In the growth stage, they had increased their advertising budget as in the

initial stages because of attracting the new customers or to retain the existing customers.• Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi

GROWTH STAGE

• Distribution = In this stage, company had expanded their market to the other cities of INDIA. Their distribution channel was the same as in the initial stages of the product.

• Promotion = In the growth stage, the company had also used the different proportioning

strategies to attract the new and the existing customers.

GROWTH STAGE CONTNUED….

Growth Stage of the LUXGrowth Stage of the LUX

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

Product StrategyProduct Strategy

Price StrategyPrice Strategy

Rapidly rising sales Rapidly rising sales

Average cost per customerAverage cost per customer

Rising profitsRising profits

Maximize market shareMaximize market share

Offer product extensions, servicesOffer product extensions, services

Price to penetrate marketPrice to penetrate market

Distribution StrategyDistribution Strategy Build intensive distributionBuild intensive distribution

Advertising StrategyAdvertising Strategy Build awareness and interest in the mass market

Build awareness and interest in the mass market

• They modified the product by adding some changes in the product.• In this stage, few competitors enter into the market like ( CINTHOL, FAIRGLOW,

SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).

• The company has expanded their market to almost all the cities of INDIA.

 • MARKETING OBJECTIVES = The marketing objective of Lux is to maximize more profit

while defending the market share. And to expand the market to all the cities of INDIA.

  • MARKETING STRATEGIES In this stage are based on:

• Product = The Lux has made the modification in the product by introducing:

Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose, Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and Honey.etc

  • Price = The Lux products are now available at higher prices in the market, the reason

behind is that the company’s marketing objectives is to maximize more profit.

• Distribution = Now Lux products are available in almost all the cities of INDIA. Their

distribution channel is same as in the initial stage.

MATURITY STAGE

• Advertising = In this stage Lux advertising has been reduced to some extent because of the more brand awareness in the minds of customers.

Recently, they have shown Aishwarya Rai , kareena kapoor & Shah Rukh khan .

• PROMOTIONAL OFFERS : ----• Like buy 3 get 1 free.

MATURITY STAGE CONTINUED…

Maturity Stage of the LUXMaturity Stage of the LUX

SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

Product StrategyProduct Strategy

Price StrategyPrice Strategy

Peak salesPeak sales

Low cost per customerLow cost per customer

High profitsHigh profits

Maximize profit while defending market share

Maximize profit while defending market share

Diversify brand and modelsDiversify brand and models

Price to match or best competitorsPrice to match or best competitors

Distribution StrategyDistribution Strategy Build more intensive distributionBuild more intensive distribution

Advertising StrategyAdvertising Strategy Stress brand differences and benefitsStress brand differences and benefits

• Besides of all campaigns for the sales promotion of Lux .The reasons for its decline are :

• 1. Currency fluctuations: Unilever products are in over 100 countries worldwide, As a result, it is exposed to adverse currency fluctuations.

• For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4% appreciation in the average Euro exchange rate.

• 2. SLOWDOWN: In year 2008 - 09 due to hard economic conditions in INDIA and other countries the sales were highly affected as the consumer started looking for some alternate products with a cheaper price than Lux.

• 3. Competition: Lux has been facing competition from HUL itself (Lifebuoy) & from other companies like:-

• Godrej Consumer Products : GCPL, India’s second largest soap maker with 9.2% market share.

• with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.• Fairglow brand, India's first Fairness soap, has created marketing history as one of the

most successful innovations.

DECLINE STAGE

Wipro : The presence of Wipro in the toilet soap industry can be seen through their brands such

as SANTOOR and CHANDRIKA.• In the southern market of India it is a major market player in toilet soap.

ITC : It entered the segment last year and has made a strong headway in a short time by

growing to 1.75% in just five months. With the brands like: Superia, Fiama Di Wills and

Vivel.

DECLINE STAGE CONTINUED…

Decline Stage of the LUXDecline Stage of the LUX

SalesSales

CostsCosts

ProfitsProfits

Marketing objMarketing obj

Product StrategyProduct Strategy

Price StrategyPrice Strategy

Declining salesDeclining sales

Low cost per customerLow cost per customer

Declining profitsDeclining profits

Reduce expenditure and milk the brandReduce expenditure and milk the brand

Phase out weak itemsPhase out weak items

Cut priceCut price

Distribution StrategyDistribution Strategy Go selective: phase out unprofitable outlets

Go selective: phase out unprofitable outlets

Advertising StrategyAdvertising Strategy Reduce to level needed to retain hard-core loyal customers

Reduce to level needed to retain hard-core loyal customers

Film stars promoting the product Lux

Thank you