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

1. PHARMACEUTICAL MARKETING
Product Life-Cycle Strategies

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. PLC shows the stages that
products go through from Introduction to
withdrawal from the market.
INTRODUC
TION
GROWTH
MATURITY
DECLINE

4. Sales and
Profits ($)
Sales
Profits
Time
Product
Development
Losses/
Investments ($)
Introduction
Growth
Maturity
Decline

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.  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. 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.  Product
development
 Introduction
 Growth
 Maturity
 Decline
 Rapidly
rising sales
 Average cost per
customer
 Rising profits
 Growing
competition

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.  Product
development
 Introduction
 Growth
 Maturity
 Decline
 Sales
peak
 Low cost per
customer
 High profits
 Competition begins
to decline
 Brand
differentiation

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.  Product
development
 Introduction
 Growth
 Maturity
 Decline
 Declining
sales
 Low cost per
customer
 Declining profits
 Declining
competition

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. 



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. 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. 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. 
Reintroduced in 1999
 Increased Distribution
 Focus on new segments of Society
 New & Interesting TV Commercial

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.