PRODUCT LIFE CYCLE....A STUDY ON PHARMA & NON-PHARMA EXAMPLE

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The slide gives a good knowledge to a layman about the one of the most imp. topic in mgmt i.e. PLC.

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PRODUCT LIFE CYCLE....A STUDY ON PHARMA & NON-PHARMA EXAMPLE

  1. 1. PHARMACEUTICAL MARKETING Product Life-Cycle Strategies
  2. 2.  A concept that provides a way to trace the stages of a product is acceptance from its introduction (birth) to its decline (death).
  3. 3. PLC shows the stages that products go through from Introduction to withdrawal from the market. INTRODUC TION GROWTH MATURITY DECLINE
  4. 4. Sales and Profits ($) Sales Profits Time Product Development Losses/ Investments ($) Introduction Growth Maturity Decline
  5. 5.  Product development  Introduction  Growth  Maturity  Decline  Begins when the company develops a new-product idea  Sales are zero  Investment costs are high  Profits are negative
  6. 6.  Product development  Introduction  Growth  Maturity  Decline  Low sales  High cost per customer acquired  Negative profits  Little competition  Demand is created  Customers made to try the product
  7. 7. Sales Low sales Costs High cost per customer Profits Negative Create product awareness and trial Marketing Objectives Product Offer a basic product Price Use cost-plus Distribution Build selective distribution Advertising Build product awareness among early adopters and dealers
  8. 8.  Product development  Introduction  Growth  Maturity  Decline  Rapidly rising sales  Average cost per customer  Rising profits  Growing competition
  9. 9. Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Price Maximize market share Offer product extensions, service, warranty Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market Product
  10. 10.  Product development  Introduction  Growth  Maturity  Decline  Sales peak  Low cost per customer  High profits  Competition begins to decline  Brand differentiation
  11. 11. Sales Peak sales Costs Low cost per customer Profits High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Marketing Objectives Product Price Distribution Advertising
  12. 12.  Product development  Introduction  Growth  Maturity  Decline  Declining sales  Low cost per customer  Declining profits  Declining competition
  13. 13. Sales Declining sales Costs Low cost per customer Profits Declining profits Reduce expenditure and harvest deletion Phase out weak items Marketing Objectives Product Price Distribution Advertising Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers
  14. 14.     Aspirin market is about a century old. Early it was used as anti pyretic-analgesic but lost its market to PCM and due to certain side effects of aspirin. It was repositioned in the market with safer dosage forms such as Enteric coated tablets, Buffered coated , dispersible tablets. Brands like Disprin , Microfine Aspro succeeded while lesser known brands vanished from the markets.
  15. 15. Stage 1: Introduction   ›     Launched in India in 1982 keeping in mind working women and children. Pioneer in instant noodle market. Low Price “BAS 2 MINUTE” Stage 2: Growth     Sales Increased 50% Market Share No 1 Brand “GOOD TO EAT FAST TO COOK” Entry of a Competitor
  16. 16. Stage 3: Maturity  Introduced new Variety Price Rs 5 Onwards Big Time Promotional Offers Slow Down In Sales Market Saturation Stage 4: Decline Big Time Downfall in Sales Formulation Changed New products launched Failure
  17. 17.  Reintroduced in 1999  Increased Distribution  Focus on new segments of Society  New & Interesting TV Commercial
  18. 18.  The product life cycle stages explain the growth and decline of revenues and profits associated with a product or service.  The company has to develop appropriate strategies and tactics in each of these product life cycle stages in order to improve its market position and profitability.  All products, whether costly or cheap are mortal.

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