Product Life Cycle<br />By<br />P.Soma Giri<br />
What is Product?<br />A product is anything that can be offered to a market that might satisfy a want or need<br />It is more than physical products; includes services, places, persons, and ideas<br />To create successful new products, the company must:<br /> understand it’s customers, markets and competitors <br /> develop products that deliver superior value to customers.<br />Products go through life cycles<br />Product planning-involves making decisions about the production and sale of a business’s products.<br />
Why do Products fail?<br />Doesn’t match current company objectives<br />Make room for other products<br />Overestimating market size<br />Poor marketing research<br />Obsolete<br />Lost its appeal<br />No longer profitable<br />Conflicts with other products in the same product line <br />Design problems<br />Excessive development costs<br />Incorrectly positioned, priced, or advertised<br />Competitive reaction<br />
Product Life Cycle (PLC):<br />The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).<br />Each product may have a different life cycle<br />PLC determines revenue earned<br />Contributes to strategic marketing planning<br />May help the firm to identify when a product needs support, redesign, reinvigorating,<br />withdrawal, etc.<br />May help in new product development planning<br />May help in forecasting and managing cash flow<br />
Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications.
Place: Online, Apple Store, Future Shop, Best Buy, Costco.</li></li></ul><li>Which stage of the PLC is the iPod Classic?<br />Product development<br />Introduction<br />Growth<br />Maturity<br />Decline<br />14<br />
Example: New Flavor of Pepsi<br />Market Introduction<br /> Pepsi bottles the new flavored product and places it on the market for consumers. <br /> Pepsi also spends a lot of money advertising the new flavor creating awareness.<br />Market Growth<br />Customers like the flavor and begin to make routine purchases. <br />Coke introduces their competing flavor.<br />Sales Decline<br />Customers have moved on to the next new flavor.<br />Some loyal fans stay behind.<br />Market Maturity<br />More competitors enter the market taking some of Pepsi’s profits.<br />