Paramjit Sharma

Product Life Cycle The Concept  Products Have Limited Life  Product Sales Pass Through Different Stages  Profits varies at Different Stages Of PLC’s  Products Require Different Strategies at Each Stage

Paramjit Sharma

Product Life Cycle PLC Stages  Introduction  Growth  Maturity  Decline

Paramjit Sharma Product Life Cycle PLC Stages

Paramjit Sharma Product Life Cycle PLC Stages Fax Cell Phones Bottled Water Type Writers News Papers Type Writers

Paramjit Sharma Product Life Cycle PLC-other Patterns 1.Growth-Slump –Maturity Pattern 2.Cycle-Recycle Pattern 3.Scalloped PLC Not All Products Exhibits Bell Shaped PLC

Paramjit Sharma Product Life Cycle PLC-other Patterns

Paramjit Sharma Product Life Cycle Style,Fashion And Fad Life Cycle 1.Style- Distinctive mode Of Expression 2.Fashion - Popular Style In Given Field 3.Fad- Fashions that disappear Quickly Housing( Colonial) 4 Characteristics- Distinctiveness, emulation, mass following,decline Rapid Acceptance & Decline

Paramjit Sharma Product Life Cycle Style,Fashion And Fad Life Cycle

Paramjit Sharma Product Life Cycle Marketing Strategies-- Introduction  Slow Growth  Expansion Of Production Capacity  Technical Problems  Distribution Network  Customer Reluctance  Profits-Low/Negative

Paramjit Sharma Product Life Cycle Marketing Strategies- introduction One Of The 4 strategies Can Be Pursued  Rapid Skimming  Slow Skimming  Rapid Penetration  Slow Penetration

Paramjit Sharma Product Life Cycle Marketing Strategies-growth Improve Product quality, add features, improve styling Adds new Models and flanker Products (New Features) Enters New Market Segments Enters New Distribution Channels Shifts Adv. From Product Awareness to Product Preference Lowers Prices To Attract next Layer

Paramjit Sharma Product Life Cycle Marketing Strategies-maturity Maturity Stages 1.Growth Maturity –Sales Start Declining 2.Stable Maturity - Saturation 3.Decaying Maturity –Absolute Level Decline Customers Start Switching

Paramjit Sharma Product Life Cycle Marketing Strategies-maturity Sales Slow Down Leads To Competition Overcapacity Increase In Promotion Weak Competitors Withdraw Giants Firms Dominate Some Nichers High Volume-Low Cost Some Abandon Low Cost

Paramjit Sharma Product Life Cycle Marketing Strategies- maturity Market Modification Volume =no of brand users * Usage Rate Per User Brand Users Can Be Expanded By 1.Convert Non Users 4 Frequent Use-Juice 2.Enter New Segments 5 Using More -Shampoo 3. Win Competitors 6 New Uses— Food Recipes Customers

Paramjit Sharma Product Life Cycle Marketing Strategies- maturity Product Modification — Modifying product Characteristics through quality,feature,Style Improvement Quality Improvement Durability Reliability Speed Taste Stronger, Bigger, Plus Feature Improvement SSize WWeight MMaterials AAccessories Safety, Versatility convenience Style Improvement AAesthetic Appeal Restyling Packaging, New Models of Cars

Paramjit Sharma Product Life Cycle Marketing Strategies- maturity Marketing Mix Modification Price Cuts, Discounts Spl. Occasions Credit Terms Increase Price & Quality Distribution MMore Outlets NNew Distribution Channels Increasing Exp Message Timing Frequency Advertising Sales Promotion Stepping Up Or Reducing Personal Selling Quality Of Sales Force Sales Territories Services Speed Tech. Assistance

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Sales Decline  May Be slow  May Be Rapid  May Reach Zero  May Petrify at Low Level

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Decline In Sales Tech. Advance Shifts In Taste Competition Leads to Overcapacity Price Cutting Profit Erosion

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Sales Decline Leads To Reduce Number Of Products Withdraw From Cut Adv Expenses Weak Trade Channels Small Firms Remaining Firms Smaller Market Segments Withdraw

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Ageing Products Hidden Costs  Waste Of Management Time  Frequent Price Adjustments  Short Production Run  Attention On Adv & Sales Promotion  Cast Shadow On Company’s Image  Delay Replacement of Product

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Ageing Products Handling System To Identify Weak Products Establising Review Committee Recommendation Of RC Finding Exit Barriers

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Harrigan,s Strategies  Increasing Investments to Dominate  Maintaining till Uncertainties  Dropping Unprofitable Customer Groups  Harvesting (Milking)  Divesting

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Harvesting  Gradually Reducing Product Cost  Reduce Product Cost, Sales Force Services, Advertisement ……

Paramjit Sharma Product Life Cycle Marketing Strategies- Decline Divest - Looking For Buyers Restage Or Rejuvenate – Adding Value To Original Product

Paramjit Sharma Too Variable In shape & Duration No Fixed Sequence Of Stages No Fixed Length Of Stages Difficult To Anticipate Current Stage

Paramjit Sharma