it is all about the product life cycle.

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2. PRODUCT LIFE CYCLE
Sathish naik.L
1736
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3.  The stages through which the individual products
develop over a period of time is know as product life
cycle.
 At first a product will be introduced in the market
 If consumers perceive it as meeting their needs and
want, it experiences a period of growth.
 Subsequently, it reaches the stage of maturity when it
loses its appeal, it’s decline stage begins and
eventually is may be taken off from the market
(demise).
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4. The classical product life cycle curves are depicted as “S” shaped
and generally divided in four stages: Introduction, growth,
maturity, and decline.
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5. Introduction Growth Maturity Decline
Classical Life Cycle Pattern
Time
Sales
Profits
Loss
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6. The introductory stage is viewed as fairly risky and quite
expensive because large amounts of money is spent on
advertising and other tools of marketing communications to
create consumer awareness in sufficiently large numbers, and
encourage trial.
3D Televisions: 3D may have been around for a few decades, but
only after considerable investment from broadcasters and
technology companies are 3D TVs available for the home,
providing a good example of a product that is in the Introduction
Stage.
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7. RAPID SKIMMING: Launching the new product at high price and
high promotional level
Slow skimming: Launching the new product at high price and
low promotional level
Rapid penetration: Launching of product at low price with
heavy promotion
Slow penetration: Launching the product at low price and low
level of promotion
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8. SalesSales
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
Low salesLow sales
NegativeNegative
Create product awareness
and trial
Create product awareness
and trial
Offer a basic productOffer a basic product
DistributionDistribution Build selective distributionBuild selective distribution
AdvertisingAdvertising Build product awareness among early
adopters and dealers
Build product awareness among early
adopters and dealers
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9. GROWTH STAGE
 The growth stage of life cycle is characterized by a sharp
rise in sales. Only a small percentage of new products
introduced,survive to reach the growth stage.
 Tablet PCs: There are a growing number of tablet PCs for
consumers to choose from, as this product passes through
the Growth stage of the cycle and more competitors start to
come into a market that really developed after the launch of
Apple’s iPad.
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10.  Improved product quality and add new product features
Add new models and products of different sizes,colour,shapes
etc.
Increased distribution, coverage enter new distribution
channels.
Shifts from product awareness to product preference
advertising
Lower prices to attract next layer of price sensitive buyers
example: Hyundai i10
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11. SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
ProductProduct
Rapidly rising salesRapidly rising sales
Average cost per customerAverage cost per customer
Rising profitsRising profits
Maximize market shareMaximize market share
Offer product extensions, service,
warranty
Offer product extensions, service,
warranty
DistributionDistribution Build intensive distributionBuild intensive distribution
AdvertisingAdvertising Build awareness and interest in the
mass market
Build awareness and interest in the
mass market
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12. MATURITY STAGE
 Most products after surviving competitive battles, winning
customer confidence and successful through growth phase
enter their maturity stage.
 When product reached their maturity stage there will be
stability in terms of demand, technology, and competition.
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13. CTND…
Laptops: Laptop computers have been around for a number of
years, but more advanced components, as well as diverse features
that appeal to different segments of the market, will help to sustain
this product as it passes through the Maturity stage.
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14. Market modification:
Entering new market segments
win competitor’s customers
Product modification:
Quality improvement
Adopting advance technology
Product differentiation
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15. MATURITY PHASE OF PLC
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
PricePrice
Peak salesPeak sales
Low cost per customerLow cost per customer
High profitsHigh profits
Maximize profit while defending
market share
Maximize profit while defending
market share
Price to match or best competitorsPrice to match or best competitors
DistributionDistribution Build more intensive distributionBuild more intensive distribution
AdvertisingAdvertising Stress brand differences and benefitsStress brand differences and benefits
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16. DECLINE STAGE
 Decline stage sets in when customer preferences change due to the
availability of technologically superior products and consumer’s shift
in values, beliefs, and tastes to products offering more value.
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17. Increase the given firms investment to dominate the market or
strengthen it’s competitive position.
Maintaining the given firms investment level until the uncertainties
about industries are resolved.
Discontinue the product or selling it to another firm that is willing
to continue the product.
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18. DECLINE PHAGE OF PLC
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
PricePrice
Declining salesDeclining sales
Low cost per customerLow cost per customer
Declining profitsDeclining profits
Reduce expenditureReduce expenditure
Cut priceCut price
AdvertisingAdvertising Reduce to level needed to retain
hard-core loyal customers
Reduce to level needed to retain
hard-core loyal customers
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20. INTRODUCTION
1916
LUX launched in
USA as Laundry
soap
1929
LUX launched
in India
1925
LUX launched in
USA as Toilet soap
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21. 1929-1950
Lux’s
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22. USES OF PRODUCT LIFE CYCLE
 Product life cycle concept gives a framework to spot the occurrence of
opportunities and threats in a product market and the industry.
 Helps to forecast sales trends
 Helps to plan investment in products
 This can help firms to reassess their objectives, strategies, and different
elements of marketing programme.
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