This document discusses the product life cycle of Nestle. It begins by outlining the stages of the product life cycle: introduction, growth, maturity, and decline. It then provides details about Nestle's history since 1866 and its founder. It analyzes some of Nestle's major brands and how their life cycles have progressed, such as Maggi noodles being banned in 2015 but relaunched in 2016 after modifications. The conclusion emphasizes the importance of understanding a product's life cycle to design effective marketing strategies for each phase.
1. PLC OF NESTLE
PRESENTED BY:-
SHIBSANKAR MANNA
SANTOSH PRUSTY
SMITA PARIDA
PRESENTED TO:-
PROF . PRANGYA
PARAMITA PANDA
2. PRODUCT LIFE CYCLE
• The concept of product life cycle (PLC) concerns the life of a
product in the market with respect to business/commercial costs
and sales measures. The product life cycle proceeds through
multiple phases.
3. INTRODUCTION
This is the stage in which the product has been introduced first time
in the market and the sales of the product starts to grow slowly and
gradually and the profit received from the product is nominal and
non-attained. And do advertisement for awareness about the
product to the consumers .
• Costs are very high
• Slow sales volumes to start
• Little or no competition
• Demand has to be created
• Makes little money at this stage
4. GROWTH
• In the growth stage, the product is present already in the market
and the consumers of the products are habitual of the product.
The customers are becoming satisfied from the product and they
bought it again and again.
• Sales volume increases significantly
• Profitability begins to rise
• Public awareness increases
• Competition begins to increase with a few new
Players in establishing market
• Increased competition leads to price decreases
5. MATURITY
• In maturity stage, the cost of the product has been decreased because of the increased
volume of the product and profit also. Also, more and more competitors have seen to be
leaving the market. In this way very few buyers have been left for the product and this
results in less sales of the product.
• Costs are decreased as a result of production
volumes increasing
• Sales volume peaks and market saturation is reached
• Increase in competitors entering the market
• Prices tend to drop due to the proliferation of
competing products.
There are 3 stage of maturity-
Growth
Stable
Decaying
STABL
E
GROWT
H
DECAYIN
G
6. DECLINE
• In this stage, the profit as well as the sales of the product has started to
decline because of the deletion of the product from the market. The
market for the product in this stage, started to show negative rate of
growth and corroding cash flows.
• Costs become counter-optimal
• Sales volume decline
• Prices, profitability diminish
• Profit becomes more a challenge of
production/distribution efficiency than
increased sales
14. TATA
On that time many competitors are introduced in the market as like
tata global beverages. Nestel starts to modify the product as Nescafé
Original, Nescafé Classic, Nescafé Gold Blend Half Caff, Nescafé Gold
Blend Decaf, Nescafé Alta Rica Decaff, Nescafe Blend 43 etc.
(2000 to NOW)
(1965 to 2000)
15. CONCLUSION
PRODUCT LIFE CYCLE IS A VERY IMPORTANT CONCEPT WITHIN AN
ORGANIZATION. IN ORDER TO MAKE A PRODUCT SURVIVE IN THE MARKET AS
LONG AS POSSIBLE, IT IS VERY ESSENTIAL FOR THE MARKETERS TO UNDERSTAND
THE PRODUCT LIFE CYCLE SO AS TO PROVIDE/DESIGN EFFECTIVE MARKETING
STRATEGIES FOR EACH PHASE OF PLC.