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Ppt product life cycle @ dom s
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PRODUCT LIFE CYCLE
What is product life cycle?
Life cycle stages
Management strategies in different life cycle stages
Product life cycle….
MAJOR HEADS
What is product life cycle?
Every product has a life cycle
Definition: A marketing theory in which products or brands follow a sequence of stages including : introduction, growth, maturity, and sales decline.
Product life cycle….
Four things in mind
1) products have a limited life
2) sales has distinct stages- with challenges, opportunities, problems
3) profits rise and fall at stages
4) products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each stage
Product life cycle….
Pre Introduction stage: Product development stage
Stage-1:Market introduction stageStage-2: Growth stage
Stage-3: Mature stageStage-4: Saturation and decline stage
Life cycle stages
Product life cycle….
Figure: Product life cycle stages
Product life cycle….
INTRODUCTION
GROWTH MATURITY DECLINE
Third generation mobile phones
Portable DVD Players
Personal Computers
Typewriters
E-conferencing Email FaxesHandwritten letters
All-in-one racing skin-suits
Breathable synthetic fabrics
Cotton t-shirts Shell Suits
iris-based personal identity cards
Smart cards Credit cardsCheque books
EXAMPLES:
Product life cycle….
Management strategies in
each life cycle stages
Product life cycle….
cost high
sales volume low
no/little competition - competitive manufacturers watch for acceptance/segment growth losses
demand has to be created
customers have to be prompted to try the product
Stage-1:Market introduction stageProduct life cycle….
costs reduced due to economies of scale
sales volume increases significantly
profitability
public awareness
competition begins to increase with a few new players in establishing market prices to maximize market share
Product life cycle….Stage-2: Growth stage
no need for publicity
sales volume peaks increase in competitive offerings
prices tend to drop due to the proliferation of competing products
brand differentiation, feature diversification Industrial profits go down
Stage-3: Mature stage
Product life cycle….
costs become counter-optimal
sales volume decline or stabilize
prices, profitability diminish
profit becomes more a challenge of production/distribution efficiency than increased sales
Stage-4: Saturation and decline stage
Product life cycle….
