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Product Life Cycles
The document discusses the product life cycle stages—introduction, growth, maturity, and decline—and the marketing strategies associated with each phase. It outlines consumer adopter groups and their motivations, detailing how marketers should tailor their approaches to different segments and stages. Additionally, it includes a case study on Oppo's smartphone marketing strategy in India, emphasizing their focus on the selfie trend and aggressive promotional tactics.
Product Life Cycles
- 1. PRODUCT LIFE CYCLE& CONSUMER ADOPTER GROUPS Group 15 Garima Agarwal (1711015) Kanak Kumar (1711030) Pavithra Sesahdri (1711045) Ujjwal Sen (1711060)
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- 3. PRODUCT LIFE CYCLE Productshave a limited life. They pass through different stages, each with different competition, challenges and opportunities.
- 4. Introduction Low sales High Costs NoProfits Time Sales($) PRODUCT CATEGORY ENTERTAINMENT SERVICES BELL-SHAPE CURVE
- 5. Time Sales($) Introduction Low sales HighCosts No Profits Growth Increasing sales Reducing Costs Some Profits PRODUCT CATEGORY ENTERTAINMENT SERVICES BELL-SHAPE CURVE
- 6. Time Sales($) Introduction Low sales HighCosts No Profits Growth Increasing sales Reducing Costs Some Profits Maturity Constant sales Reducing Costs Increasing Profits PRODUCT CATEGORY ENTERTAINMENT SERVICES BELL-SHAPE CURVE
- 7. Time Sales($) Introduction Low sales HighCosts No Profits Growth Increasing sales Reducing Costs Some Profits Maturity Constant sales Reducing Costs Increasing Profits Decline Reducing sales Constant Costs Reducing Profits PRODUCT CATEGORY ENTERTAINMENT SERVICES BELL-SHAPE CURVE
- 8. SPECIAL CASES Time SalesVolume Mobile Games:Zynga Portfolio Airlines: SpiceJet Time SalesVolume Time SalesVolume Aluminium Product SCALLOPEDCYCLE-RECYCLE GROWTH-SLUMP- MATURITY
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- 11. CONSUMER ADOPTER GROUPS Adoptionis the individual’s decision to become a Regular User of the product & is followed by Consumer Loyalty Process.
- 12. CONSUMER ADOPTION PROCESS AwarenessInterest Evaluation Trial Adoption
- 13. CONSUMER ADOPTION PROCESS AwarenessInterest Evaluation Trial Adoption Online Advertisements and Bill-boards
- 14. CONSUMER ADOPTION PROCESS In-appinformative notifications Online Advertisements and Bill-boards Awareness Interest Evaluation Trial Adoption
- 15. CONSUMER ADOPTION PROCESS In-appPush notifications & Stimulus Awareness Interest Evaluation Trial Adoption
- 16. CONSUMER ADOPTION PROCESS AwarenessInterest Evaluation Trial Adoption Discounts & Offers
- 17. CONSUMER ADOPTION PROCESS AwarenessInterest Evaluation Trial Adoption Campaigns to achieve buy-in of the consumer #DoYourShare
- 18. INNOVATION DIFFUSION Time ofAdoption of Innovation 2.5% Innovators 13.5% Early Adopters 34% Early Majority 34% Late Majority 16% Laggards Value Orientations CONSUMER ADOPTER GROUPS Motives Effect of Personal Influence Tech Enthusiasts Opinion Leaders Pragmatists Skeptical Conservatives, Price Sensitive Tradition- bound
- 19. MARKETER ACTION Introduction GrowthMaturity Decline Product Lifecycle Innovation Diffusion Curve
- 20. INTRODUCTION STAGE Product Lifecycle Product Awareness •Product trials • Iterate on feedback Capture Innovators • Selective distribution • Pioneer advantage MSFT Strategy • Get feedback from real users
- 21. GROWTH STAGE Product Lifecycle Innovation Diffusion Curve Maximise Mkt.Share •Add Product Extensions •Build distribution Capture Early Adopters •Product service, warranty •Begin promotions MSFT Strategy •Product Launch events •Capture mindshare of opinion leaders
- 22. MATURITY STAGE Product Lifecycle Maximise Profits •Diversify brands • Introduce product variants Defend mkt. share • Poach buyers from rival brands MSFT Strategy • Whitepapers • Spec sheets
- 23. DECLINE STAGE Product Lifecycle Innovation Diffusion Curve Milk thebrand • Only Laggards • Harvest, Divest Reduce expenditure • Reduce distribution, promotion expenses MSFT Strategy • XP Custom Support Program
- 24. OPPO SMARTPHONES Product Lifecycle,Consumer Adopter Groups, Marketing Strategy
- 25. PRODUCT LIFECYCLE Time Sales($) Introduction GrowthMaturity DeclineIntroduction Growth
- 26. INTRODUCTION STAGE PRODUCT PRICE PLACE PROMOTION EnteredIndia in August 2014 Launched Oppo N1 Swivel Camera Module Design High end price segment Priced at 39990
- 27. INTRODUCTION STAGE PRODUCT PRICE PLACE PROMOTION OFFLINE MARKETINGFOCUS Targeted 12 Tier-II and Tier-III cities Aggressive expansion of points of sale and service centers Taking up all outdoor advertising space Offering 5-10% more margin to retailers and shop floor sales promoters
- 28. INTRODUCTION STAGE PRODUCT PRICE PLACE PROMOTION HIGH PROMOTIONALCOSTS Youth Icons as Brand Ambassadors Official global partner of ICC for T20 World Cup OPPO F1 ICC WT20 Limited Edition phone Online selfie campaign, #WT20SelfieExpert Launched the Game On, Selfie On Charity Campaign for Cancer Awareness in Partnership with Yuvraj Singh Associated with popular daily shows
- 29. GROWTH STAGE PRODUCT PRICE PLACE PROMOTION Widerange of products (29 Smartphones) Positioned itself as ‘Selfie Expert’ High quality camera phones with strong focus on front camera Mid Range Positioning 5990 - 30990
- 30. GROWTH STAGE PRODUCT PRICE PLACE PROMOTION Movedtowards Online Distribution Model: Partnered with Flipkart to launch exclusive online models Last Mile Distributors ONLINE DISTRIBUTION FOCUS
- 31. GROWTH STAGE PRODUCT PRICE PLACE PROMOTION Extensiveuse of celebrities in endorsements Sponsor of the Indian Cricket team Brand new SMT (Surface Mount technology) facility in Greater Noida, to reduce cost Investment plans of 2200 Crore for marketing in 2017 COST REDUCTION
- 32. OPPO’S RATE OFADOPTION Relative Advantage Compatibility ComplexityDivisibility Communicability Motorized Rotating camera, 5MP and 16MP front cameras Selfie trend, Selfie expert positioning, focused on women Simple to Use Offline distribution, Retail Trial Opportunity Celebrities, Simple communication messages, clear benefits
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