The document discusses the product life cycle concept and how it applies to brands like Nokia. It covers the typical stages of introduction, growth, maturity, and decline. For Nokia, it summarizes their journey through each stage: 1) Introduction stage from 1995-2002 when they launched early models to establish their brand in a market with low demand. 2) Growth stage from 2003-2009 when features and models improved, driving rapid sales growth. 3) Maturity from 2009-2011 when Nokia saw most profits as competition increased. 4) Decline from 2011-2016 as Nokia struggled to adapt to changing technologies and consumer preferences, leading to a dependence on brand equity that could not be sustained.

1. BRAND FOLLOWS
PRODUCT LIFE CYCLE OR
CAN THEY DEFY IT?
Presented By:- Shubham Mandloi
1

2. INTRODUCTION
• The product life cycle is an important concept in
marketing.
• It describes the stages a product goes through from
when it was first thought of until it is finally removed
from the market.
• Not all products reach this final stage.
• Associated with changes in the marketing situation,
thus impacting the marketing strategy.
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3. SALES AND PROFIT LIFE
CYCLE
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4. COMMON PRODUCT LIFE CURVES
Sales Sales Sales
Time Time Time
Growth-Decline
Pattern
Cycle-Recycle
Pattern
Scalloped
Pattern
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5. INTRODUCTION STAGE
• A period of slow sales growth as the product is introduced
in the market.
• Product branding and quality level is established.
• Distribution is selective until consumers show acceptance
of the product.
• Two different strategies can be used to introduce the
product to consumers.
1) Penetration
2) Skimming
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6. Sales
Costs
Profits
Marketing Objectives
Product
Price
Low sales
High cost per customer
Negative
Create product awareness
and trial
Offer a basic product
Use cost-plus
Distribution Build selective distribution
Advertising Build product awareness among
early adopters and dealers
INTRODUCTION STAGE 6

7. GROWTH STAGE
• The firm seeks to build brand preference and increase
market share.
• Product quality is maintained & additional features and
services may be added.
• Pricing is maintained.
• Promotion is aimed at broader audience.
• Only a small percentage of new products introduced.
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8. Sales
Costs
Profits
Marketing Objectives
Product
Price
Rapidly rising sales
Average cost per customer
Rising profits
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
GROWTH STAGE 8

9. MATURITY STAGE
• Strong growth in sales diminishes.
• Competition with similar products.
• Product features enhanced to differentiate the product
from competitors.
• Distribution becomes more intensive.
• Incentives offered to encourage preference over
competitors.
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10. Sales
Costs
Profits
Marketing Objectives
Product
Price
Peak sales
Low cost per customer
Maximize profit while defending
market share
Diversify brand and models
Price to match or beat competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and
benefits
Acceptance by potential buyers
MATURITY STAGE 10

11. DECLINE STAGE
• Downturn in the market.
• Sales show a downward drift.
• Profits erode.
• Intense price cutting.
• Products withdrawn from market.
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12. Sales
Costs
Profits
Marketing Objectives
Product
Price
Declining sales
Low cost per customer
Declining profits
Reduce expenditure
Phase out weak items
Cut price
Distribution
Go selective: phase out unprofitable
outlets
Advertising
Reduce to level needed to retain
hard-core loyal customers
DECLINE STAGE 12

13. BENEFITS
• Product life cycle model gives managers the ability
to forecast product directions on a macro level, and
plan for timely execution of relevant competitive
moves.
• Product life cycle model can also be used as an
explanatory tool in facilitating an understanding of
past and future sales progression..
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14. BENEFITS
• Companies always anticipate the emergence of new
competitors and therefore, must prepare in advance
to battle the competition and strengthen their
product’s position.
• The PLC model is advantages in planning long-
term offensive marketing strategies, particularly
when markets and economies are stable
• Orderly and profitable end of life product
management.
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15. LIMITATIONS
• The model worked well when the environment
was relatively stable, not subject to uncertainty as
it is today.
• It appears that life comes to an end with decline,
but there are examples when after decline the
product may have found new popularity and
rejuvenation
• The life cycle patterns for various products differ
to a large extent.
• It is difficult for the decision maker to find out the
exact location of their brands in the product life
cycle.
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16. PRODUCT LIFE CYCLE
OF NOKIA
Nokia Corporation is a Finland
based multinational company
Headquarter - Espoo, Finland
CEO – Stephen Elop
Founder – Fredrik Idestam 1865
Nokia started as a pulp, rubber &
cable manufacturer
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17. INTRODUCTION STAGE
(1995-2002)
NOKIA 1011
In 1992,Launced its First Digital
handheld GSM Phone ,The Nokia 1011.
Launched very few models due to lesser
demand & innovation.
Sold both GSM & CDMA phones.
Launched 1st model Nokia 2100 with
Nokia tune.
2110 was 1st model capable of
sending/receiving SMS.
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18. GROWTH STAGE
(2003-2009)
Launched phones without external
antenna
Had better features like games,
alarm, ergonomic keypad, display
etc.
Models like Nokia 3310/3315 marked
beginning of growth stage
Launched models like N95 to
compete with Apple’s i-phone
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19. MATURITY STAGE
(2009-2011)
Launched a lot of touch screen
models.
Dropped Mobile Prices.
Launched Qwerty+touch model
N-97.
Most Profit Gained.
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20. DECLINE STAGE
(2011-2016)
Nokia’s poor product design which
did not attract consumers.
Shifted focus on Windows as its main
OS.
Strong Dependence on brand equity.
Changing technological Environment.
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21. Conclusion
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