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    Ppt of plc Ppt of plc Presentation Transcript

    • PRODUCT LIFE CYCLE
      Santosh Kumar Gaur
      MBA 1st Year. Roll No.36
    • Flow of Presentation
      Introduction
      Stages
      Explanation
      Utility of PLC
      Marketing strategy
      Operation level
      Limitation
    • A product passes through certain distinct stages during its life these stages are called product life cycle. Normally it is represented as a sales curve spanning the product’s course from introduction to its exit.
      Introduction
    • THE FOUR DISTINCT STAGES IN PLC
      • Introduction Stage
      • Growth Stage
      • Maturity Stage
      • Decline Stage
      • At this stage there may not be ready market for product; sales are low; profits seem a remote possibility; demand has to be created and developed and product is prompted for use.
      • The duration of the stage depends on nature of product ,its price, its technological newness and consumer’s view.
      • crucial decision in this stage is pricing strategy and it decided on (1) market skimming and (2) market penetration.
      INTRODUCTION STAGE
      • Poor Design of the Product.
      • Incorrectly Positioned.
      • Launched at Wrong Time.
      • Price too High.
      • Poor Advertised.
      CAUSES OF FAILURE AT INTRODUCTION STAGE
    • Growth Stage
      • In this stage sales will start climbing quickly; Attracted by the opportunities for profit ,new competitor will enter the market; Price remain same or fall slightly; Promotion spending is same or slightly higher level.
      • Customer- Early adopter of the product
      • The Market is shared among the various firm. Company has to reconsider its pricing strategies.
      • In this stage sales will slow down; Its normally lasts longer than previous stages; It posses strong challenges to marketing management.
      • The slowdown in sales growth results in many producers with many product to sell; prices becomes low; weak competitors start dropping out product.
      • Company looks for new users and market segment.
      Maturity Stage
      • Sales declines due to technological advances, shifts in consumer tastes and increased domestic and foreign competition.
      • Some firms withdraw from the market, Those remaining reduce products offer, It might be slow or Rapid.
      Decline Stage
    • Characteristics of four distinct stage
    • Sales and Profits Over the Product’s Life From Introduction to Decline
      Sales and
      Profits ($)
      Sales
      Profits
      Time
      Product
      Develop-
      ment
      Introduction
      Growth
      Maturity
      Decline
      Losses/
      Investments ($)
    • Utility of PLC Concept
      PLC concept lies in the fact that each stage is characterized by a typical market behavior and lends itself to the application of certain specific marketing strategy. Understand and managing it effectively can help in prolonging the profitable phase of product’s lifespan.
    • How PLC Concept help in formulating Marketing Strategies
      • Facilitate Pre-Planning the product launch
      • Facilitate Prolonging the Profitable Stage
      • Facilitate Investment Decision on the Product
      • Facilitate Choice of Appropriate Entry Strategies
      • Facilitate choice of right time to exit
      • Provides useful clues to managing customers
      Presented by
      Upendra Kumar
      MBA 1stSem Roll-48
    • Facilitates pre-planning the product launch
      • PLC helps to foresee and predict the profile of the proposed product’s life
      • Helps in issues on pricing, channel and promotion.
      • It provides valuable lead time.
      • Used to predict when competitors are likely to enter the scene, in what area they would intimate the product.
    • Finding out new users for the product
      Finding out new uses for the product
      Popularizing more frequent use of the product
      Making the product more distinctive to the consumers
      Adding real and/or psychological value to the product.
      Facilitate Prolonging the Profitable Phase
    • It helps to assign investment to the right products and avoid committing heavy resources on wrong product
      It helps to formulate corporate strategy as well as marketing strategy in an effective manner.
      Facilitate Investment Decision on Product
    • Facilitate choice of appropriate entry strategy
      Entry as Innovator
      Entry as Early follower
      Entry as Segmenter
      Entry as me-too
      PLC facilitate choice of the right time to exit.
      • Managing consumer on the path of his experience in respect of the product
      • Used to make stronger ‘company-consumer relationship’
      • It also used for augmenting the product, improving service support and modifying the pricing approaches.
      Provides useful clues to managing customers
      • The Product level
      • The Product sub-category level
      • The Brand level
      PLC operates at three level
    • Limitation of PLC
      • The life cycle of Brand cannot be projected and studied independent of the product sub-category/product category to which it belongs.
      PLC does not give actual life phase, it cannot be exactly predicted
      It not give any foolproof plans in advance.
    • Thank You
    • ?