Product Life Cycle

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Product Life Cycle

  1. 1. PRODUCT LIFE CYCLE Prepared By : HITESH BAID
  2. 2. Product Life Cycle Sales and Profits Over the Product’s Life From Inception to Demise Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($) Sales and Profits ($)
  3. 3. Introduction stage <ul><li>Promotional expenditures are at their highest ratio to sales </li></ul><ul><li>Decision has to be taken on being a pioneer or not </li></ul><ul><li>Pioneer advantage </li></ul><ul><li>Brand Recall </li></ul><ul><li>The brand establishes the attributes the product class should possess </li></ul><ul><li>Producer advantage </li></ul>
  4. 4. Market Entry Strategy HIGH LOW P R I C E LOW HIGH PROMOTION Rapid Skimming Slow Skimming Rapid Penetration Slow Penetration
  5. 5. GROWTH <ul><li>IMPROVES QUALITY AND ADDS NEW PRODUCT FEATURE </li></ul><ul><li>ADDS NEW MODELS AND FLANKER PRODUCTS </li></ul><ul><li>ENTERS NEW MARKET SEGMENTS </li></ul><ul><li>SHIFTS FROM PRODUCT AWARENESS ADVERTISING TO PRODUCT PREFERENCE ADVERTISING </li></ul><ul><li>LOWER PRICES </li></ul>
  6. 6. MATURITY <ul><li>GROWTH MATURITY </li></ul><ul><li>STABLE MATURITY </li></ul><ul><li>DECAYING MATURITY </li></ul>
  7. 7. STRATEGIES <ul><li>MARKET MODIFICATION </li></ul><ul><li>VOLUME = NO. OF BRAND USERS* </li></ul><ul><li>USAGE RATE PER USER </li></ul><ul><li>Number of brand users </li></ul><ul><li>converting non users into users </li></ul><ul><li>entering new market segments </li></ul><ul><li>winning competitor’s customers </li></ul>
  8. 10. The Indian Chapter
  9. 11. The Challenge <ul><li>Get people accustomed to chocolates- primarily seen as a western taste </li></ul><ul><li>Do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself </li></ul>
  10. 12. CDM in the 80’s <ul><li>Brand was considered as a surrogate of parental affection for their children </li></ul><ul><li>The chocolate goodness (appetite appeal) was being harnessed </li></ul>
  11. 13. The Expression <ul><li>CDM positioned as ‘The perfect expression of parental love’ </li></ul><ul><li>‘ Sometimes a Cadbury can say it better than words’ </li></ul>
  12. 14. Category audits in early 1990’s <ul><li>Chocolate are meant for kids only </li></ul><ul><li>Seen as an indulgence product </li></ul><ul><li>Negative associations </li></ul><ul><ul><li>Too much was bad </li></ul></ul><ul><ul><li>Bad for health </li></ul></ul>
  13. 15. Key Issue <ul><li>With communication consciously addressing kids, consumption also got restricted within the same segment resulting in brand stagnation </li></ul>
  14. 16. Marketing Challenge <ul><li>To expand the consumer base by making CDM aspirational and desirable to the adult segment </li></ul>
  15. 17. Communication Task <ul><li>To increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free. </li></ul><ul><li>Integrate the &quot;real&quot; chocolate of Cadbury Dairy Milk to &quot;real&quot; feelings. </li></ul>
  16. 18. What was the consumer saying?? <ul><li>Extensive brand audits on the consumer pulse revealed that Cadbury Dairy Milk moments were spontaneous, carefree, special, real moments. </li></ul><ul><li>So, what if these ‘moments’ were brought back to life even for adults? </li></ul>
  17. 19. The atmosphere at that time… <ul><li>The new resurgent India. </li></ul><ul><li>The era of globalization had sowed the seeds of ‘I wanna break free’ syndrome </li></ul><ul><li>Avenues for freedom for expression were more than welcome </li></ul>
  18. 21. Increasing brand usage <ul><li>use the product on more occassions </li></ul><ul><li>use more of the product in each occasion </li></ul><ul><li>Use the product in new ways </li></ul>
  19. 22. Heinz EZ Squirt

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