The document discusses the product life cycle from introduction to decline. It explains that during the introduction stage, promotional expenditures are highest as the brand establishes itself. As the product grows, it improves quality and adds new features. During maturity, brands try to increase the number of users and usage rate through strategies like entering new markets. Finally in decline, brands face losses as sales and profits decrease over time.

1. PRODUCT LIFE CYCLE Prepared By : HITESH BAID

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. Introduction stage Promotional expenditures are at their highest ratio to sales Decision has to be taken on being a pioneer or not Pioneer advantage Brand Recall The brand establishes the attributes the product class should possess Producer advantage

4. Market Entry Strategy HIGH LOW P R I C E LOW HIGH PROMOTION Rapid Skimming Slow Skimming Rapid Penetration Slow Penetration

5. GROWTH IMPROVES QUALITY AND ADDS NEW PRODUCT FEATURE ADDS NEW MODELS AND FLANKER PRODUCTS ENTERS NEW MARKET SEGMENTS SHIFTS FROM PRODUCT AWARENESS ADVERTISING TO PRODUCT PREFERENCE ADVERTISING LOWER PRICES

6. MATURITY GROWTH MATURITY STABLE MATURITY DECAYING MATURITY

7. STRATEGIES MARKET MODIFICATION VOLUME = NO. OF BRAND USERS* USAGE RATE PER USER Number of brand users converting non users into users entering new market segments winning competitor’s customers

10. The Indian Chapter

11. The Challenge Get people accustomed to chocolates- primarily seen as a western taste Do so by reaching out to the masses in a land where mindsets and preferences are as diverse as the country itself

12. CDM in the 80’s Brand was considered as a surrogate of parental affection for their children The chocolate goodness (appetite appeal) was being harnessed

13. The Expression CDM positioned as ‘The perfect expression of parental love’ ‘ Sometimes a Cadbury can say it better than words’

14. Category audits in early 1990’s Chocolate are meant for kids only Seen as an indulgence product Negative associations Too much was bad Bad for health

15. Key Issue With communication consciously addressing kids, consumption also got restricted within the same segment resulting in brand stagnation

16. Marketing Challenge To expand the consumer base by making CDM aspirational and desirable to the adult segment

17. Communication Task To increase category relevance, give consumers a taste of life the Cadbury Dairy Milk way - real, fun and free. Integrate the "real" chocolate of Cadbury Dairy Milk to "real" feelings.

18. What was the consumer saying?? Extensive brand audits on the consumer pulse revealed that Cadbury Dairy Milk moments were spontaneous, carefree, special, real moments. So, what if these ‘moments’ were brought back to life even for adults?

19. The atmosphere at that time… The new resurgent India. The era of globalization had sowed the seeds of ‘I wanna break free’ syndrome Avenues for freedom for expression were more than welcome

21. Increasing brand usage use the product on more occassions use more of the product in each occasion Use the product in new ways

22. Heinz EZ Squirt