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Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
Product & brand mgt..
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Product & brand mgt..

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  • 1. PRESENTATION PRESENTED BY: GANESH K. KANTHALI M.B.A.(MARKETING) PRESENTAION TOPIC:PRODUCT STRATEGY OVER THE LIFE-CYCLE 8/3/20131
  • 2. PRODUCT LIFE CYCLE 8/3/20132 Just like human beings, Products too have their childhood, adolescence, youth & old age. The life cycle stages when applied to products, is termed as Product Life Cycle(PLC). From its birth, a product passes through various stages, until it is finally abandoned or withdrawn from market. PLC having a four stages: 1. Introduction 2. Growth 3. Maturity 4. Decline
  • 3. 8/3/20133 Sales & Profit Losses/ Investment Product development Introductio n Growth Maturity Decline Time Sale s Profit Fig. 1.: Product Life Cycle(PLC) Source: Marketing Management (Philip Kotler
  • 4. Strategies for the different stages of the PLC 8/3/20134 I. Introduction Stage: A. Characteristics: 1. Sales: Low 2. Cost : High cost per unit 3. Profit: Negative 4. Customer: Innovators 5. Competitors: Few B. Marketing Objective: 1. Create Product Awareness and Trial Strategies: High High low low Slow Skimming Rapid Skimming Rapid Penetration Slow Penetration Promotion Price 1. Rapid Skimming: High Price, High Promotion 1. Slow Skimming : High Price, Low Promotion 1. Rapid Penetration: Low Price, High Promotion 1. Slow Penetration: Low Price, Low Promotion Fig.2.:Mkt. Strategies in Introduction S
  • 5. 8/3/20135 II. Growth Stage A. Characteristics : 1. Sale-Rapidly rising. 2. Cost-Average cost per customer 3. Profit-Rising 4. Customers-Early adapters 5. Competitors growing number B. Marketing Objectives: 1. Maximize market share Strategies: 1. Improvement of product quality with new features & style. 2. Enter in new market segment. 3. Enhancing brand image, brand loyalty & bran equity through brand promotion. 4. Reduce the prices to attract the customers. 5. Increasing distribution coverage & entering new distribution channels. 6. Shift from product awareness advertising to product- preference advertising.
  • 6. 8/3/20136 III. Maturity Stage A. Characteristics: 1. Sales-Peak sales 2. Costs-Low cost per customer 3. Profit-High profit 4. Customers-Middle majority 5. Competitors-Stable /begins to decline B. Marketing objective: 1. Maximize profit while defending market share Strategies: Product Modification Market Modification Marketing Mix Modification •Quality improvement •Feature improvement •Style improvement •New users •More frequent use •More usage per occasion •New & more varied uses •Advertising •Sale Promotion •Personal Selling •Price •Distribution •Services
  • 7. 8/3/20137 IV. Decline stage A. Characteristics: 1. Sales: Declining sales 2. Cost: Low cost per customer 3. Profit : Declining profit 4. Customers : Laggard 5. Competitors : Declining number B. Marketing Objective: 1. Reduce expenditure & milk the brand. Strategies: Product: Phase out weak areas, Abandon product. Price: Cut price Distribution: Go selective; phase out unprofitable outlets Advertising : Reduce to level needed to retain hard-core loyal. Sales Promotion : Reduce to minimal level Data Source: Philip Kotler & Gary Armstrong (marketing Management)
  • 8. 8/3/20138 ...Thank You… Have a nice day.…...

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