Product life cycle

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Product Life Cycle of MARUTI & NOKIA

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  • Maruti 800 ac uniqMaruti 800 – basic model
  • MARUTI 800 EXMARUTI 800 DUO
  • 2003 – upto now
  • Product life cycle

    1. 1. 4/30/2013
    2. 2. PRESENTED BYADITI SHARMA – 184ADITYA SURESH – 186AKASH GUPTA – 188ALANKAR DAS – 190AMIT ROY - 192DEEPAK BAJAJ – 202GOURAB BANERJEE – 2064/30/2013 Product Life Cycle - Competitive Marketing
    3. 3. 1 INTRODUCTION2 GROWTH3 MATURITY4 DECLINE1 INTRODUCTION2 GROWTH3 MATURITY4 DECLINECONTENTS4/30/2013 Product Life Cycle - Competitive Marketing
    4. 4. INTRODUCTION GROWTH DECLINEPRODUCT LIFE CYCLEMATURITY4/30/2013 Product Life Cycle - Competitive Marketing
    5. 5. 4/30/2013 Product Life Cycle - Competitive MarketingCOMPANY PROFILETYPE : PUBLIC COMPANYFOUNDED : 1981HEADQUARTERS : NEW DELHI, INDIAKEY PEOPLE :RC BHARGAVA ( CHAIRMAN ), KENICHI AYUKAVA ( CEO )REVENUE : $369.34 BILLION
    6. 6. Took 2 years for Maruti & Suzuki to signthe dotted lineFirst car imported, assembled and soldin 1983Cheapest car in the marketHuge gap between demand and supplyWaiting list often took upto 3 years toclearTargeted urban areas, “Consumers whodesire for a car”Based on SS80, Suzuki fronte4/30/2013 Product Life Cycle - Competitive MarketingSCENARIO INTRODUCTIONSTAGE ( 1983 – 1986 )
    7. 7. 4/30/2013 Product Life Cycle - Competitive MarketingMARUTI 800PRODUCTS
    8. 8. Engine 796ccPower 39bhpCarweight600kgMileage18.2kmplCapacity4person4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT SPECIFICATION
    9. 9. 4/30/2013 Product Life Cycle - Competitive MarketingPricingstrategyEx-Showroom 47500On Road 52500PRICESLOWSKIMMING
    10. 10. 1. Keys handed over to the first ownerHarpal Singh by the then PM Mrs.Indira Gandhi2. “People’s Car” : Sanjay Gandhi4/30/2013 Product Life Cycle - Competitive MarketingPROMOTION“SMALL IS BEAUTIFUL”
    11. 11. 4/30/2013 Product Life Cycle - Competitive MarketingNEWSPAPER ADS
    12. 12. 4/30/2013 Product Life Cycle - Competitive MarketingTV COMMERCIAL
    13. 13. 4/30/2013 Product Life Cycle - Competitive MarketingConsumersDealers/DistributorsAssembly Unit (Gurgaon)DISTRIBUTION
    14. 14. Expectations from people matched productpromiseProduction of 65% components in India by1991Liberalization of Indian economyNew opportunities openedObjective to increase the market sharesA lot of 500 units exported to Hungary4/30/2013 Product Life Cycle - Competitive MarketingGROWTH STAGE ( 1987 – 1996 )
    15. 15. 4/30/2013 Product Life Cycle - Competitive MarketingSALES0 50000 100000 150000 20000019831987198919961983 1987 1989 1996Unit sold 852 20,269 63736 189061Unit sold
    16. 16. 4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT VARIANTSMARUTI 800 AC UNIQ MARUTI- BASIC MODEL
    17. 17. Air-ConditioningvariantMusic SystemMaruti 1000, thefirstcontemporarysedan unleashed4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT SPECIFICATION
    18. 18. 4/30/2013 Product Life Cycle - Competitive MarketingPRICE
    19. 19. “CHANGE YOUR LIFE”Occasional discountsgiven by the dealers4/30/2013 Product Life Cycle - Competitive MarketingPROMOTION
    20. 20. 4/30/2013 Product Life Cycle - Competitive MarketingPRINT MEDIA ADS
    21. 21. 4/30/2013 Product Life Cycle - Competitive MarketingTV COMMERCIAL• VideoMaruti Suzuki 800-Change Your LifeCommercial - YouTube_2.FLV
    22. 22. 4/30/2013 Product Life Cycle - Competitive MarketingDISTRIBUTIONConsumersDealers/DistributorsAssembly Unit (Gurgaon)
    23. 23. Sales touched 200,000 mark in 1999Entry of competitors like Generalmotors, Ford, Tata40 million two wheeler owners targetedRepositioning of Maruti ProductsNew soft edged jelly bean shapeintroduced in 1997Maruti 800′s carburetor with fuelinjection4/30/2013 Product Life Cycle - Competitive MarketingMATURITY STAGE ( 1997 – 2002 )
    24. 24. 4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT VARIANTSMARUTI 800 EX MARUTI 800 DUO
    25. 25. ShockAbsorbersGaschargedSuspensionCoil Springbased4/30/2013 Product Life Cycle - Competitive MarketingMARUTI 800 EX
    26. 26. 1. Air conditioned2. Green tinted glass3. Front bucket seats with largerarmrests4. Vanity mirror for co-driver4/30/2013 Product Life Cycle - Competitive MarketingMARUTI 800 DUO
    27. 27. 4/30/2013 Product Life Cycle - Competitive Marketing1.Slashed its prices2.Insurance offered for Re.1 only3.Service network ofMaruti covered 1314 citiesPROMOTION
    28. 28. 4/30/2013 Product Life Cycle - Competitive Marketing1. 250 customer service outletsalong 20 highway routes2. Pick and drop service facilityfor servicing3. Express Service to ensureminimum time consumptionSERVICE
    29. 29. 4/30/2013 Product Life Cycle - Competitive MarketingMARUTI SERVICE STATION
    30. 30. 4/30/2013 Product Life Cycle - Competitive MarketingADVERTISEMENT
    31. 31. 4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT WEBSITE
    32. 32. 4/30/2013 Product Life Cycle - Competitive MarketingVideoMaruti 800 DUO LPGTV Commercial (2008) -YouTube.FLVTVC
    33. 33. 4/30/2013 Product Life Cycle - Competitive MarketingConsumersDealers/DistributorsAssembly Unit (Gurgaon)DISTRIBUTION
    34. 34. 1. Heavy Competition fromAlto, i10, Spark etc.2. Drastic decrease in sales3. Just 1288 units sold in2008-2009.4. Withdrawn from 13 citiesincluding metros5. Repositioned to Alto 8004/30/2013 Product Life Cycle - Competitive MarketingDECLINE STAGE ( 2003 – UPTO NOW)
    35. 35. 4/30/2013 Product Life Cycle - Competitive Marketing050000100000150000200000250000YEAR 2000 YEAR 2001 YEAR 2002 YEAR 2004SALESSALESSALES
    36. 36. A response to increasing marketof MatizLPG & CNG variableFace-lift to grilleHalogen headlampsStylish tail-lamps4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT VARIANTS
    37. 37. 1. A response to Hyundai Santro2. Outsold by Maruti 800 itselfinitially3. Forced roll back of Maruti-800 EX to 4-speed gearbox4/30/2013 Product Life Cycle - Competitive MarketingMARUTI SUZUKI ALTO
    38. 38. 4/30/2013 Product Life Cycle - Competitive MarketingRS 1,93,000+TAXPRICE
    39. 39. New technology/engine not to be infused tomeet BS IV normsSale stopped in 13 cities including the 4metrosSelling continued in semi-urban and ruralareas4/30/2013 Product Life Cycle - Competitive MarketingPHASE – OUT,APRIL 2010
    40. 40. 4/30/2013 Product Life Cycle - Competitive Marketing1.2599 Offer” Consumers canbuy Maruti by paying EMIs of2599 for 7 year2.Dealers offeredexchange/loyalty bonus upto Rs.10000/-3.Cash discount upto Rs. 25000/-offeredPROMOTION OF MARUTI ALTO
    41. 41. 4/30/2013 Product Life Cycle - Competitive MarketingMARUTI TRUE VALUE
    42. 42. 4/30/2013 Product Life Cycle - Competitive MarketingADVERTISEMENT
    43. 43. 4/30/2013 Product Life Cycle - Competitive MarketingConsumersDealers/DistributorsAssembly Unit (Gurgaon)DISTRIBUTION
    44. 44. CONTACT4/30/2013 Product Life Cycle - Competitive Marketing 45
    45. 45. 4/30/2013 Product Life Cycle - Competitive Marketing 46
    46. 46. 4/30/2013 Product Life Cycle - Competitive Marketing 47
    47. 47. 4/30/2013 Product Life Cycle - Competitive Marketing 48
    48. 48. a
    49. 49. Nokia Corporation is a Finland basedmultinational companyHeadquarter -- Espoo, FinlandCEO – Stephen ElopFounder – Fredrik Idestam 1865Nokia started as a pulp, rubber &cable manufacturerCOMPANY PROFILE4/30/2013 Product Life Cycle - Competitive Marketing
    50. 50. 4/30/2013 Product Life Cycle - Competitive Marketing
    51. 51. 1.Focused on handset manufacture only2.Enhanced product portfolio3.Large distribution channels4.Adjust preferences for specific markets5.Customer satisfaction6.Focused on replacement7.Increased commitment to emerging market4/30/2013 Product Life Cycle - Competitive MarketingMARKETING STRATEGIES OF NOKIA
    52. 52. TimeGrowthMaturityDeclineIntroductionSales curveThe Concept PhonesNokia E- seriesNokia Symbian& N- SeriesNokia Windows &Symbian phonesPRODUCT LIFE CYCLE OF NOKIA4/30/2013 Product Life Cycle - Competitive Marketing50
    53. 53. Lifecycle …• Globally Nokia’s market is at Decline due to shift fromSymbian to Windows phone devicesGlobally & inIndia PlacedHereRs.TimeProduct life cycle4/30/2013 Product Life Cycle - Competitive Marketing 54
    54. 54. 4/30/2013 Product Life Cycle - Competitive Marketing 55INTRODUCTION STAGE ( 1995 – 2002)NOKIA 2110
    55. 55. 4/30/2013 Product Life Cycle - Competitive MarketingPRODUCT1. Entered India in 19952. Launched very few models due tolesser demand & innovation3. Sold both GSM & CDMA phones4. Launched 1st model Nokia 2110 withNokia tune5. 2110 was 1st model capable ofsending/receiving sms6.Competed with the then marketleader ‘Motorola’
    56. 56. General 2G Network GSM 900Announced 1995Status DiscontinuedWeight 236gDisplay Type Monochrome graphicLoudspeaker No3.5mm jack - NoPhonebook SIM card + 125 entriesCall records 10 dialed, 10 received, 10 missed callsData GPRS NoBluetooth NoFeatures Messaging SMSRadio NoClock NoAlarm NoGames NoGPS NoJava NoBattery NiMH 550 mAh batteryTalk time 2 h 40 minNokia 21104/30/2013
    57. 57. 1. Followed ‘PriceSkimming’ strategy2. Launched Nokia 2110 atRs. 22000 (approx.)3.Launched phones in therange of Rs. 15000 to 250004/30/2013 Product Life Cycle - Competitive MarketingPRICEa
    58. 58. 1. Rarely followed any discountingpolicy2. Offered a good amount ofbackend profit to retailers3. Mobility factor of mobilesattracted customers without anypromotional scheme4/30/2013 Product Life Cycle - Competitive MarketingPROMOTIONa
    59. 59. • High-end models imported from China &low-end models manufactured inChennai’s plant• Manufactured/Imported mobiles storedin Gurgaon’s mother warehouse• HCL India is distributor for Nokia IndiaPvt. Ltd. for North & East India• For West & South India, Nokia has itsown distribution channel• HCL India supplied these mobiles to statelevel distributors like BSBMarketing, A.G. comm. etc.• Many places HCL India directly suppliedthese phones to retailers4/30/2013 Product Life Cycle - Competitive MarketingPLACEa
    60. 60. China/ChennaiGurgaon’smotherwarehouseHCL IndiawarehouseSub-distributors(BSB Marketing-South Delhi)Nokia PriorityDealers/Organised retailCustomers4/30/2013 Product Life Cycle - Competitive MarketingPLACE
    61. 61. 4/30/2013Product Life Cycle - Competitive Marketing 62GROWTH STAGE ( 2003 – 2009 )a
    62. 62. Launched phones withoutexternal antennaHad better features likegames, alarm, ergonomickeypad, display etc.Models like Nokia 3310/3315marked beginning of growthstageLaunched models like N95 tocompete with Apple’s i-phone4/30/2013 Product Life Cycle - Competitive MarketingPRODUCTa
    63. 63. General 2G Network GSM 900 / 1800Announced 2000Display Type Monochrome graphicLoudspeaker NoPhonebook SIM onlyCall records 8 dialed, 8 received, 8 missed callsBluetooth NoFeatures Messaging SMSClock YesAlarm YesGames 4 ( Snake II, Pairs II, Space Impact, Bantumi )GPS NoJava NoColors User exchangeable front and back covers- Predictive text input- Calculator- Voice Dial- Profiles- Currency converterBattery NiMH 900 mAh batteryTalk time 2 h 30 min to 4 h 30NOKIA 3310
    64. 64. Features :Slider Phone3GWi-Fi (WLAN)RadioMP3 PlayerVideo RecordLoudspeaker/SpeakerphoneBluetoothCamera 5 Mega pixelVideo Record.NOKIA N95 8GBFEW POPULAR N-SERIES MODELS OF NOKIA4/30/2013 Product Life Cycle - Competitive Marketing 65
    65. 65. Features:BluetoothRadioCamera 3 Mega pixel3GVideo RecordLoudspeaker/SpeakerphoneMP3 PlayerNavi-keyNOKIA N734/30/2013 Product Life Cycle - Competitive Marketing 66
    66. 66. Features:Camera 5 Mega pixelVideo RecordWi-Fi (WLAN)BluetoothRadio.Xenon flashNOKIA N824/30/2013 Product Life Cycle - Competitive Marketing 67
    67. 67. Features:3.5 mm jackWi-Fi (WLAN)MP3 PlayerRadioLoudspeaker/SpeakerphoneBluetooth4/8 Gb hard diskCamera 2 Mega pixel.NOKIA N91 4/8GB4/30/2013 Product Life Cycle - Competitive Marketing 68
    68. 68. 4/30/2013 Product Life Cycle - Competitive MarketingPRICEa1. Followed ‘Price skimming’ strategyin beginning of ‘growth stage’2. Launch price of 3310 was approx.Rs. 21000/-3. As profits & popularity increasedprices were slashed to Rs. 5000/- in2003 for popular models like 33104. Later-on in coming years, Nokiaadopted ‘Price penetration’strategy
    69. 69. LIST OF PRICE POPULAR MODELS IN 2007MODEL PRICENokia N95 8GB Rs.33000Nokia N82 Rs.22500Nokia N78 Rs.20000Nokia N81 8GB Rs.17500Nokia N77 Rs.15000Nokia N76 Rs.18500Nokia N73 Music Edition Rs.16000Nokia N73 Rs.150004/30/2013 Product Life Cycle - Competitive Marketing
    70. 70. 1. Post-paid connections weregiven free with select Nokiamodels2. Person owning ‘pager’, whopurchased Nokia phones weregiven discount on post-paid tariffs3.Dealers & retailers got a largeamount of ‘backend profit’ toincrease the sales & drive growth4/30/2013 Product Life Cycle - Competitive MarketingPROMOTIONa
    71. 71. China/ChennaiGurgaon’smotherwarehouseHCL IndiawarehouseSub-distributors(BSB Marketing-South Delhi)Nokia PriorityDealers/Organised retailCustomers4/30/2013 Product Life Cycle - Competitive MarketingPLACEa
    72. 72. 31191 30016 29455 29267341914112151058 50710409843362 4780 5011 4330 4639 54887985496611972200 3381 3592 3207 3616 43067205398889101000020000300004000050000600002001 2002 2003 2004 2005 2006 2007 2008 2009EURO(million)YEARSNOKIANet Sales Operating Profit Net Profit Linear (Net Sales)4/30/2013 Product Life Cycle - Competitive MarketingSALES FIGURE ( 2001 – 2009 )a
    73. 73. GRAPHICALREPRESENTATION31191 30016 2945529267341914112151058 50710409843362 4780 5011 4330 4639 54887985496611972200 3381 3592 3207 3616 43067205398889101000020000300004000050000600002001 2002 2003 2004 2005 2006 2007 2008 2009EURO(MILLION)YEARSNOKIANet Sales Operating Profit Net Profit
    74. 74. 4/30/2013 Product Life Cycle - Competitive MarketingMATURITY STAGE ( 2009 – 2011 )a
    75. 75. Launched a lot of touch screenmodelsLaunched 1st Maemo 5 OSphone N-900Launched Qwerty+touchmodel N-97Focussed on E-series phones tocompete with Blackberry4/30/2013 Product Life Cycle - Competitive MarketingPRODUCTa
    76. 76. General 2G Network GSM 850 / 900 / 1800 / 19003G Network HSDPA 850 / 900 / 1700 / 1900 / 2100Status Available. Released 2010, OctoberDisplay Type AMOLED capacitive touchscreen, 16M colorsMultitouch YesLoudspeaker YesMemory Card slot microSD, up to 32 GBInternal 16 GB storage, 256 MB RAM, 512 MB ROMSpeed HSDPA, 10.2 Mbps; HSUPA, 2.0 MbpsWLAN Wi-Fi 802.11 b/g/n, UPnP technologyBluetooth Yes, v3.0 with A2DPUSB Yes, microUSB v2.0, USB On-the-goCamera Primary 12 MP, 4000x3000 pixels, Carl Zeiss optics, autofocus, Xenon flash,Video Yes, 720p@25fps (720p@30fps via an update), check qualitySecondary VGA videocall cameraFeatures OS Symbian^3 OS, upgradable to Nokia Belle RefreshCPU 680 MHz ARM 11Colors Dark Grey, Silver White, Green, Blue, Orange, Pink, Bronze- Anodized aluminiumBattery Non-removable Li-Ion 1200 mAh batteryNOKIA N84/30/2013
    77. 77. Followed ‘Price penetration’strategy to sustain growingcompetitionLaunched models ranging fromRs. 1000 to Rs. 30000Frequently reduced prices of popular &low end models to compete withMicromax, Samsung, LG, etc.4/30/2013 Product Life Cycle - Competitive MarketingPRICE
    78. 78. 1.During 2007, 15,000 ton packaging materialhas been saved by using smaller packaging2. Nokia have reduced amount of printedmaterial inside the box3. In 2007 Nokia began to increase level ofrecycled contentPackaging is important because it protects products as theymake their way from factory to customers Attractive, Good & Secure packing4/30/2013 Product Life Cycle - Competitive MarketingPACKAGINGa
    79. 79. 4/30/2013 Product Life Cycle - Competitive MarketingPROMOTION1. Offered combo discount onpurchase of Nokia bluetoothstereo headset with N8.2. Offered Sennheiser musicheadset free with select models3. During festive occasions Reebokwrist watches, sunglasses, t-shirts& sling bag were also given as giftwith select models4. Scratch cards were given tocustomers to make them availinstant discount
    80. 80. China/ChennaiGurgaon’smotherwarehouseHCL IndiawarehouseSub-distributors(BSB Marketing-South Delhi)Nokia PriorityDealers/Organised retailCustomers4/30/2013 Product Life Cycle - Competitive MarketingPLACEa
    81. 81. q4/30/2013 Product Life Cycle - Competitive MarketingDECLINE STAGE ( 2011 Q3 – PRESENT )
    82. 82. Upgraded its Symbian OS with ‘3’& ‘Belle’Shifted focus on Windows asits main OSLaunched 1st Windowsphone, Lumia 800Used Symbian only in low endmodels4/30/2013 Product Life Cycle - Competitive MarketingPRODUCTa
    83. 83. aGeneral 2G Network GSM 850 / 900 / 1800 / 19003G Network HSDPA 850 / 900 / 1900 / 2100 - RM-819HSDPA 900 / 1900 / 2100 - RM-801 CVAnnounced a 2011, OctoberStatus Available. Released 2011, NovemberDisplay Type AMOLED capacitive touchscreen, 16M colorsSize 480 x 800 pixels, 3.7 inches (~252 ppi pixel density3.5mm jack YesMemory Card slot NoInternal 16 GB storage, 512 MB RAMData GPRS Class 33EDGE Class 33Speed HSDPA 14.4 Mbps, HSUPA 5.76 MbpsWLAN Wi-Fi 802.11 b/g/nBluetooth Yes, v2.1 with A2DP, EDRUSB Yes, microUSB v2.0Camera Primary 8 MP, 3264x2448 pixels, Carl Zeiss optics, autofocus, dual-LED flashSecondary NoFeatures OS Microsoft Windows Phone 7.5 Mango, upgradable to v7.8Chipset Qualcomm MSM8255 SnapdragonCPU 1.4 GHz ScorpionNOKIA LUMIA 800
    84. 84. a4/30/2013 Product Life Cycle - Competitive MarketingPRICE1. Price penetration strategy wascontinued as company’s profitsdeclined due to cut-throatcompetition from Samsung &local players like Micromax2. Had phones ranging from Rs.1000 to Rs. 300003. Reduction in price also lead todeterioration in quality
    85. 85. 4/30/2013 Product Life Cycle - Competitive MarketingPROMOTION1. Companies distributed freebies like wristwatches & t-shirts with Lumia logoengrossed2. During festive occasions Reebok wristwatches, sunglasses, t-shirts & sling bagwere also given as gift with select models3. Top 3 performing stores from each zonewere selected for foreign trip organized byNokia free of cost4. Retailers were encouraged to sell Lumiaphones by offering them more incentiveson sale
    86. 86. China/ChennaiGurgaon’smotherwarehouseHCL IndiawarehouseSub-distributors(BSB Marketing-South Delhi)Nokia PriorityDealers/Organised retailCustomers4/30/2013 Product Life Cycle - Competitive MarketingPLACEa
    87. 87. SALES FIGURE FROM 2009TO 2012409844244638659301761197 2070-1073 -2303891 1850-1164-3106-10000010000200003000040000500002009 2010 2011 2012EURO(million)YEARSNOKIANet Sales Operating Profit/Loss Net Profit/Loss Linear (Net Sales)
    88. 88. NOKIA MOVING TOWARDS GROWTHIN Q4-’121040092758980100057354 754272398041704-487 -71-954 -1340-826 -576439-20000200040006000800010000120002011 2011 2011 2011 2012 2012 2012 2012Q1 – Q2 – Q3 – Q4 – Q1 – Q2 – Q3 – Q4 –EURO(million)YEARSNOKIANet sales Operating profit/loss Linear (Net sales)
    89. 89. 4/30/2013 Product Life Cycle - Competitive Marketing 90
    90. 90. 4/30/2013 Product Life Cycle - Competitive Marketing 91CONTACT
    91. 91. MARKETING RESEARCH

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