The document discusses product life cycle management in the apparel industry. It presents a method to estimate the life cycle stages of products - growth, maturity, and decline - using historical sales data. A log-growth model is fit to sales data to identify the stages. The model determines the number of weeks a product remains in each stage, which helps predict demand and plan inventory and promotions. Applying the estimated life cycle stages as variables in a sales forecasting model further improves predictions.
PRODUCT LIFECYCLE MANAGEMENT FOR APPARELSangeet Kumar
The document discusses product lifecycle management for the apparel industry. It describes the different market segments in the fashion pyramid from couture to mass market. The main critical success factors are identified as product innovation, quality, and brand image. The new product development process for apparel is explained as a dynamic process with short timelines to get products to market for each season. Key phases include design, prototyping, engineering, sourcing, production and distribution. Sample development is an important part of the process and can take 4-6 months to get approval for mass production.
The document discusses product life cycles and the Boston Matrix model for analyzing a company's product portfolio. It describes the stages a product goes through in its life cycle from development to withdrawal. The Boston Matrix classifies products into four categories - stars, cash cows, dogs, and problem children - based on their market growth rate and market share. The matrix can help companies determine where to allocate resources by informing decisions about marketing strategies for each type of product.
Product portfolio analysis involves identifying the position of each product in a company's portfolio based on its market share and the market's growth. The Boston Matrix is a common method used, classifying products as stars, cash cows, question marks or dogs. Stars have high market share in growing markets while cash cows have high share in stagnant markets. Question marks have low share but are in growing markets, while dogs have low share in declining markets. Extending a product's lifecycle can involve introducing variations, exporting to new markets, minor redesigns, new advertising, or improved versions. The next class will cover the price aspect of the marketing mix.
The document discusses the product life cycle theory and its four stages: introduction, growth, maturity, and decline. It provides characteristics of each stage such as high costs and low sales in introduction, increased sales and profits in growth, market saturation in maturity, and declining sales and costs in decline. The document uses the example of Lux soap's product life cycle in India from its introduction in 1929 to the present, where it is currently in the maturity stage. The goals of product life cycle management are to reduce costs and time to market while improving quality and identifying sales opportunities.
Product and product life cycle and strategies Girish Jadhwani
The document discusses the concept of a product life cycle, which describes the stages through which products develop over time in a market. It defines a product and the stages of a product life cycle, including introduction, growth, maturity, and decline. It notes that a product life cycle helps with sales forecasting, planning, and marketing program development. The stages can involve different pricing and promotion strategies like rapid or slow skimming and penetration. The growth stage involves improving and expanding the product, while the maturity stage focuses on market and product modifications. The decline stage may decrease or selectively decrease investment in the product.
This document discusses product strategies of ICT manufacturers as they globalize. It presents 5 propositions on factors that influence strategy choices and tests them using case studies of 4 Finnish ICT companies (Nokia mobile phones, Nokia networks, Salcomp, and Tecnomen). The propositions find that standardized strategies are more likely when: markets are similar across countries; competition is intense; and firms have global capabilities and seek economies of scale. Modified strategies using standardized platforms may be used when local capabilities and economies of scope are important. The case studies generally validate the propositions.
PRODUCT LIFECYCLE MANAGEMENT FOR APPARELSangeet Kumar
The document discusses product lifecycle management for the apparel industry. It describes the different market segments in the fashion pyramid from couture to mass market. The main critical success factors are identified as product innovation, quality, and brand image. The new product development process for apparel is explained as a dynamic process with short timelines to get products to market for each season. Key phases include design, prototyping, engineering, sourcing, production and distribution. Sample development is an important part of the process and can take 4-6 months to get approval for mass production.
The document discusses product life cycles and the Boston Matrix model for analyzing a company's product portfolio. It describes the stages a product goes through in its life cycle from development to withdrawal. The Boston Matrix classifies products into four categories - stars, cash cows, dogs, and problem children - based on their market growth rate and market share. The matrix can help companies determine where to allocate resources by informing decisions about marketing strategies for each type of product.
Product portfolio analysis involves identifying the position of each product in a company's portfolio based on its market share and the market's growth. The Boston Matrix is a common method used, classifying products as stars, cash cows, question marks or dogs. Stars have high market share in growing markets while cash cows have high share in stagnant markets. Question marks have low share but are in growing markets, while dogs have low share in declining markets. Extending a product's lifecycle can involve introducing variations, exporting to new markets, minor redesigns, new advertising, or improved versions. The next class will cover the price aspect of the marketing mix.
The document discusses the product life cycle theory and its four stages: introduction, growth, maturity, and decline. It provides characteristics of each stage such as high costs and low sales in introduction, increased sales and profits in growth, market saturation in maturity, and declining sales and costs in decline. The document uses the example of Lux soap's product life cycle in India from its introduction in 1929 to the present, where it is currently in the maturity stage. The goals of product life cycle management are to reduce costs and time to market while improving quality and identifying sales opportunities.
Product and product life cycle and strategies Girish Jadhwani
The document discusses the concept of a product life cycle, which describes the stages through which products develop over time in a market. It defines a product and the stages of a product life cycle, including introduction, growth, maturity, and decline. It notes that a product life cycle helps with sales forecasting, planning, and marketing program development. The stages can involve different pricing and promotion strategies like rapid or slow skimming and penetration. The growth stage involves improving and expanding the product, while the maturity stage focuses on market and product modifications. The decline stage may decrease or selectively decrease investment in the product.
This document discusses product strategies of ICT manufacturers as they globalize. It presents 5 propositions on factors that influence strategy choices and tests them using case studies of 4 Finnish ICT companies (Nokia mobile phones, Nokia networks, Salcomp, and Tecnomen). The propositions find that standardized strategies are more likely when: markets are similar across countries; competition is intense; and firms have global capabilities and seek economies of scale. Modified strategies using standardized platforms may be used when local capabilities and economies of scope are important. The case studies generally validate the propositions.
This document discusses product definitions, features, life cycles, and planning. It defines a product as a bundle of utilities and accompanying services. Product features include name, qualities, branding, and interactions between manufacturers and customers. The product life cycle has introduction, growth, and maturity stages. Introduction involves acceptance, image, and distribution. Growth focuses on competitors and promotions. Maturity reaches highest sales but declining profits. Product life cycle shows outputs, transforms from production to customers, and develops strategies. Product planning determines policies and addresses demand, improvements, expansions, eliminations, and development strategies through market research and comprehensive activities.
This document discusses new product planning and development. It covers the different categories of new products, the challenges and barriers to new product development, and the criteria for evaluating new products. It also describes the new product development process, which includes idea generation, idea screening, concept testing, business analysis, product development, test marketing, and commercialization. Finally, it discusses product life cycle management and strategies for a company's product mix and product line.
This document discusses the product life cycle, which describes the stages a product goes through from introduction to decline and removal from the market. It begins by comparing the human life cycle to the product life cycle, which involves birth, growth, maturity, decline and death. The product life cycle model is used by marketers to understand what stage a product is currently in and determine the appropriate strategies. The stages are introduction, growth, maturity, and decline, each with different challenges, opportunities, and marketing approaches.
- The group chose the Sony Walkman as their product in the maturity stage of its life cycle.
- Their extension strategies included redesigning it to be smaller and add more colors/styles to appeal to younger customers.
- They also proposed adding Bluetooth connectivity and memory storage to give it new functionality to transition to a new market segment.
- The group argued these changes would make the Walkman relevant to new users while retaining loyal customers.
This document discusses various concepts related to products and product management. It begins by defining what a product is and its key components. It then covers the different levels of a product from the core benefit to potential augmentations. It also discusses how consumer and industrial goods are classified and the product hierarchy and system. The document concludes by explaining the concept of the product life cycle and different patterns it may take, as well as strategies for the introduction stage.
Products typically go through distinct life cycle stages from introduction to decline. The five main stages are development, introduction, growth, maturity, and decline. Marketing strategies must be tailored to each stage. In introduction, the goal is creating awareness and trial. In growth, the focus is building brand preference and market share. Maturity aims to defend market share and maximize profits amid competition. Decline requires deciding whether to maintain, harvest, or divest the product. Managing a portfolio of products in different life cycle stages helps maximize cash flow and profits over time.
The document describes the evolution of the structure of the apparel industry over 40 years through 5 distinct stages:
1) The immediate post-World War II era had a simple structure with sales, manufacturing, and CEO roles.
2) In the 1960s, marketing became important and was added to the structure.
3) In the late 1960s, design and merchandising roles were added.
4) In the 1970s-1980s, market research was incorporated and responsibilities shifted from production to consumer needs.
5) The current structure has specialized roles across marketing, merchandising, design, sourcing, manufacturing, and finance/administration.
The document discusses the product life cycle, which describes the stages of a product's sales and profits over time. There are typically four stages: introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers as profits rise and fall. Effective strategies must be tailored to the specific characteristics of each life cycle stage.
The document outlines the product development process and types of products. The product development process consists of 6 phases: planning, concept development, system-level design, design detail, testing and refinement, and production ramp-up. These phases involve specifying market needs, generating and selecting concepts, designing subsystems and components, creating drawings and specifications, building and testing prototypes, and ramping up full-scale production. The document also lists 8 types of products including generic, technology push, platform, process incentive, customized, high risk, quick build, and complex systems.
The document discusses the stages of a product's life cycle from introduction to decline. It identifies the four main stages as introduction, growth, maturity, and decline. Each stage is characterized by different levels of sales, costs, profits, target customers, and competition. In the introduction stage, sales are low and costs are high. Growth sees rapidly rising sales and profits. Maturity marks peak sales but increasing competition. Finally, decline has falling sales and profits as the product winds down. The document emphasizes that companies must employ different strategies during each life cycle stage to maximize profits over a product's lifetime.
The document discusses product life cycles, which trace a product's stages from introduction to decline. It identifies four main stages: introductory, growth, maturity, and decline. Each stage is characterized by different sales patterns, levels of competition, and marketing strategies. Extending a product's life cycle involves modifying either the product itself, such as adding new features, or the market, like finding new groups of customers. Managing products effectively requires understanding where they are in their life cycle stages.
The document discusses various aspects of product management including product definition, quality, features, design, classification, mix, lines, strategies, development process, and reasons for new product failure. It defines a product and different types of products. It also covers topics like quality, features, design considerations, product classification, mix, lines, and strategies for development.
The document discusses the stages of a product life cycle, including product development, introduction, growth, maturity, and decline. It provides details about each stage, such as high costs and limited competition in the introduction stage, increasing profits in the growth stage, and falling sales and profits in the decline stage. As an example, it lists holographic projection in the introduction stage, laptops in the growth stage, typewriters in the decline stage, and tablets and PCs transitioning from introduction to growth.
This document discusses production management and the product life cycle. It defines production management as planning, organizing, directing, and controlling production activities to convert raw materials into finished goods. It then outlines the six stages of the product life cycle: development, introduction, growth, maturity, saturation, and decline/withdrawal. In each stage, it provides details on characteristics like sales trends, costs, revenues, and strategic considerations.
This document discusses the product life cycle and how products progress through different stages from introduction to decline. It explains that the product life cycle has four main stages: introduction, growth, maturity, and decline. During each stage, companies should focus on different marketing mix elements like product, price, placement, promotion, and sales strategies. The stages are used to understand how to best market and manage products over their lifetime in the market.
Marketing Management - Product Life CycleSarosh Gul
Every product goes through a life cycle from development to decline. There are typically five stages: product development, introduction, growth, maturity, and decline. Each stage is characterized by different levels of sales, costs, profits, and competition. Companies employ different marketing strategies such as pricing, distribution, advertising, and promotions during each stage to successfully manage their products through the life cycle.
The document discusses product life cycles and how they can be used for strategic marketing planning. It describes the typical stages a product goes through - development, introduction, growth, maturity, decline, and withdrawal. During each stage, different marketing strategies are most effective, such as high promotion during introduction, market share growth during maturity, and cost reduction during decline. Understanding a product's life cycle helps companies plan when to support, redesign, or withdraw a product.
This document discusses product life cycles and the Boston Matrix model for analyzing a company's product portfolio. It describes the typical stages a product goes through - development, introduction, growth, maturity, saturation, decline, and withdrawal. The Boston Matrix classifies products into four categories (Stars, Cash Cows, Dogs, Problem Children) based on their market growth rate and market share. The model can help companies determine how to allocate resources by identifying which products need investment, support, or removal from the market.
This document discusses the product life cycle and cost control. It describes the four stages of the product life cycle: introduction, growth, maturity, and decline. It notes that the introduction stage has high research and marketing costs but low sales, while the growth stage sees increasing profits and economies of scale. The maturity stage is the most competitive, and the decline stage occurs when the market becomes saturated or consumers switch to new products. The document then outlines aspects of cost control, including planning, communication, motivation, appraisal, and decision-making to prevent waste and meet cost targets at each stage of the product life cycle.
Product Lifecycle Analysis is an invaluable business framework for developing a robust product marketing strategy. This document details a 5-phase approach to proper Product Lifecycle Analysis and draws out key strategic insights at each stage of the lifecycle. Additional concepts discussed include Consumer Adoption Curve, Bass Diffusion Model, Lifecycle-Performance Factor Matrix, Strategic Positioning, and Substitution Analysis.
This document discusses product portfolio management and the product lifecycle (PLC). It describes the five stages of the PLC as development, introduction, growth, maturity, and decline. A product portfolio manager evaluates where each product sits in the PLC based on metrics like sales and profits. The manager then establishes strategic objectives for the products depending on their lifecycle stage, such as building awareness in introduction or defending market share in maturity. The document also discusses ways to potentially extend the maturity phase, like finding new customers or uses for the product. Maintaining a balanced portfolio with products in different lifecycle stages can help reduce risk.
There are three levels of product life cycles: 1) product category, 2) specific product forms within a category, and 3) individual brands. Product category and product form life cycles follow an S-shape pattern, while individual brand life cycles are more erratic due to ongoing marketing decisions. The document discusses strategies for different stages of the product life cycle and how products can be modified or markets changed to enhance sales during the growth and maturity stages.
This document discusses product definitions, features, life cycles, and planning. It defines a product as a bundle of utilities and accompanying services. Product features include name, qualities, branding, and interactions between manufacturers and customers. The product life cycle has introduction, growth, and maturity stages. Introduction involves acceptance, image, and distribution. Growth focuses on competitors and promotions. Maturity reaches highest sales but declining profits. Product life cycle shows outputs, transforms from production to customers, and develops strategies. Product planning determines policies and addresses demand, improvements, expansions, eliminations, and development strategies through market research and comprehensive activities.
This document discusses new product planning and development. It covers the different categories of new products, the challenges and barriers to new product development, and the criteria for evaluating new products. It also describes the new product development process, which includes idea generation, idea screening, concept testing, business analysis, product development, test marketing, and commercialization. Finally, it discusses product life cycle management and strategies for a company's product mix and product line.
This document discusses the product life cycle, which describes the stages a product goes through from introduction to decline and removal from the market. It begins by comparing the human life cycle to the product life cycle, which involves birth, growth, maturity, decline and death. The product life cycle model is used by marketers to understand what stage a product is currently in and determine the appropriate strategies. The stages are introduction, growth, maturity, and decline, each with different challenges, opportunities, and marketing approaches.
- The group chose the Sony Walkman as their product in the maturity stage of its life cycle.
- Their extension strategies included redesigning it to be smaller and add more colors/styles to appeal to younger customers.
- They also proposed adding Bluetooth connectivity and memory storage to give it new functionality to transition to a new market segment.
- The group argued these changes would make the Walkman relevant to new users while retaining loyal customers.
This document discusses various concepts related to products and product management. It begins by defining what a product is and its key components. It then covers the different levels of a product from the core benefit to potential augmentations. It also discusses how consumer and industrial goods are classified and the product hierarchy and system. The document concludes by explaining the concept of the product life cycle and different patterns it may take, as well as strategies for the introduction stage.
Products typically go through distinct life cycle stages from introduction to decline. The five main stages are development, introduction, growth, maturity, and decline. Marketing strategies must be tailored to each stage. In introduction, the goal is creating awareness and trial. In growth, the focus is building brand preference and market share. Maturity aims to defend market share and maximize profits amid competition. Decline requires deciding whether to maintain, harvest, or divest the product. Managing a portfolio of products in different life cycle stages helps maximize cash flow and profits over time.
The document describes the evolution of the structure of the apparel industry over 40 years through 5 distinct stages:
1) The immediate post-World War II era had a simple structure with sales, manufacturing, and CEO roles.
2) In the 1960s, marketing became important and was added to the structure.
3) In the late 1960s, design and merchandising roles were added.
4) In the 1970s-1980s, market research was incorporated and responsibilities shifted from production to consumer needs.
5) The current structure has specialized roles across marketing, merchandising, design, sourcing, manufacturing, and finance/administration.
The document discusses the product life cycle, which describes the stages of a product's sales and profits over time. There are typically four stages: introduction, growth, maturity, and decline. Each stage poses different challenges and opportunities for sellers as profits rise and fall. Effective strategies must be tailored to the specific characteristics of each life cycle stage.
The document outlines the product development process and types of products. The product development process consists of 6 phases: planning, concept development, system-level design, design detail, testing and refinement, and production ramp-up. These phases involve specifying market needs, generating and selecting concepts, designing subsystems and components, creating drawings and specifications, building and testing prototypes, and ramping up full-scale production. The document also lists 8 types of products including generic, technology push, platform, process incentive, customized, high risk, quick build, and complex systems.
The document discusses the stages of a product's life cycle from introduction to decline. It identifies the four main stages as introduction, growth, maturity, and decline. Each stage is characterized by different levels of sales, costs, profits, target customers, and competition. In the introduction stage, sales are low and costs are high. Growth sees rapidly rising sales and profits. Maturity marks peak sales but increasing competition. Finally, decline has falling sales and profits as the product winds down. The document emphasizes that companies must employ different strategies during each life cycle stage to maximize profits over a product's lifetime.
The document discusses product life cycles, which trace a product's stages from introduction to decline. It identifies four main stages: introductory, growth, maturity, and decline. Each stage is characterized by different sales patterns, levels of competition, and marketing strategies. Extending a product's life cycle involves modifying either the product itself, such as adding new features, or the market, like finding new groups of customers. Managing products effectively requires understanding where they are in their life cycle stages.
The document discusses various aspects of product management including product definition, quality, features, design, classification, mix, lines, strategies, development process, and reasons for new product failure. It defines a product and different types of products. It also covers topics like quality, features, design considerations, product classification, mix, lines, and strategies for development.
The document discusses the stages of a product life cycle, including product development, introduction, growth, maturity, and decline. It provides details about each stage, such as high costs and limited competition in the introduction stage, increasing profits in the growth stage, and falling sales and profits in the decline stage. As an example, it lists holographic projection in the introduction stage, laptops in the growth stage, typewriters in the decline stage, and tablets and PCs transitioning from introduction to growth.
This document discusses production management and the product life cycle. It defines production management as planning, organizing, directing, and controlling production activities to convert raw materials into finished goods. It then outlines the six stages of the product life cycle: development, introduction, growth, maturity, saturation, and decline/withdrawal. In each stage, it provides details on characteristics like sales trends, costs, revenues, and strategic considerations.
This document discusses the product life cycle and how products progress through different stages from introduction to decline. It explains that the product life cycle has four main stages: introduction, growth, maturity, and decline. During each stage, companies should focus on different marketing mix elements like product, price, placement, promotion, and sales strategies. The stages are used to understand how to best market and manage products over their lifetime in the market.
Marketing Management - Product Life CycleSarosh Gul
Every product goes through a life cycle from development to decline. There are typically five stages: product development, introduction, growth, maturity, and decline. Each stage is characterized by different levels of sales, costs, profits, and competition. Companies employ different marketing strategies such as pricing, distribution, advertising, and promotions during each stage to successfully manage their products through the life cycle.
The document discusses product life cycles and how they can be used for strategic marketing planning. It describes the typical stages a product goes through - development, introduction, growth, maturity, decline, and withdrawal. During each stage, different marketing strategies are most effective, such as high promotion during introduction, market share growth during maturity, and cost reduction during decline. Understanding a product's life cycle helps companies plan when to support, redesign, or withdraw a product.
This document discusses product life cycles and the Boston Matrix model for analyzing a company's product portfolio. It describes the typical stages a product goes through - development, introduction, growth, maturity, saturation, decline, and withdrawal. The Boston Matrix classifies products into four categories (Stars, Cash Cows, Dogs, Problem Children) based on their market growth rate and market share. The model can help companies determine how to allocate resources by identifying which products need investment, support, or removal from the market.
This document discusses the product life cycle and cost control. It describes the four stages of the product life cycle: introduction, growth, maturity, and decline. It notes that the introduction stage has high research and marketing costs but low sales, while the growth stage sees increasing profits and economies of scale. The maturity stage is the most competitive, and the decline stage occurs when the market becomes saturated or consumers switch to new products. The document then outlines aspects of cost control, including planning, communication, motivation, appraisal, and decision-making to prevent waste and meet cost targets at each stage of the product life cycle.
Product Lifecycle Analysis is an invaluable business framework for developing a robust product marketing strategy. This document details a 5-phase approach to proper Product Lifecycle Analysis and draws out key strategic insights at each stage of the lifecycle. Additional concepts discussed include Consumer Adoption Curve, Bass Diffusion Model, Lifecycle-Performance Factor Matrix, Strategic Positioning, and Substitution Analysis.
This document discusses product portfolio management and the product lifecycle (PLC). It describes the five stages of the PLC as development, introduction, growth, maturity, and decline. A product portfolio manager evaluates where each product sits in the PLC based on metrics like sales and profits. The manager then establishes strategic objectives for the products depending on their lifecycle stage, such as building awareness in introduction or defending market share in maturity. The document also discusses ways to potentially extend the maturity phase, like finding new customers or uses for the product. Maintaining a balanced portfolio with products in different lifecycle stages can help reduce risk.
There are three levels of product life cycles: 1) product category, 2) specific product forms within a category, and 3) individual brands. Product category and product form life cycles follow an S-shape pattern, while individual brand life cycles are more erratic due to ongoing marketing decisions. The document discusses strategies for different stages of the product life cycle and how products can be modified or markets changed to enhance sales during the growth and maturity stages.
Competitive Analysis - Literature Review of Analytical FrameworksLanguage Explore
The PLC is not the businessman's panacea but it can be useful if used in combination with other models and frameworks and alongside good management judgement.
The BCG assumed that market share is a good indicator of cash requirement though in reality, profits and cash flow depended on a lot other things than just market share and growth.
Porter who was convinced that the BCG Matrix by itself was not very useful in determining strategy for a particular business and was too simplistic, proposed some analytical tools and techniques in his three core concepts of the Basic Competitive Forces, the Generic Competitive Strategies and the Value Chain.
The document discusses the life cycle inventory (LCI) stage of life cycle assessment (LCA). LCI involves directly collecting input-output data from the system under study, including materials and resources consumed, energy utilized, and energy and by-products released. It provides sample data from a study on disposable cups that analyzed energy consumption and sources at different stages of the cups' lifecycles.
This document outlines the product life cycle (PLC) model, including its key stages of introduction, growth, maturity, and decline. It provides details on how products, styles, fashions, and fads may progress differently through the PLC. Marketing strategies are discussed for each stage, with an emphasis on adapting strategies based on where a product is in its life cycle. Examples are given of products that have successfully navigated the PLC stages as well as those that have declined.
The document discusses the product life cycle, which describes the stages a product goes through from launch to withdrawal from the market. It includes four stages: introduction, growth, maturity, and decline. In the introduction stage, a product is new to the market and growth is slow while marketing costs are high. In the growth stage, sales and profits increase as the product gains market share. Most profits are realized in the maturity stage through established sales. In the decline stage, sales begin to drop off due to saturation or new products, and profits decline. The document emphasizes considering external factors like politics, economics, society and technology when analyzing a product's life cycle stage and strategy.
This document discusses the product life cycle and its four stages: introduction, growth, maturity, and decline. In the introduction stage, sales are low but costs are high as the product is launched. The growth stage sees increasing sales and profits allowing more investment in promotion. Strategies at this stage focus on maintaining quality, price, distribution, and broader promotion. Examples are given of products at each stage like 3D TVs in introduction and Blu-ray discs in growth.
This document discusses concurrent engineering and product life cycles. It defines concurrent engineering as a systematic approach to integrated product and process design that emphasizes responding to customer needs through better, faster products. It then describes different types of multidisciplinary teams used in concurrent engineering, including functional, lightweight, heavyweight, autonomy, collocated autonomy, and virtual teams. The document also outlines the typical stages of a product life cycle: development, growth, maturity, decline, and withdrawal. It provides details on activities in the development stage such as concept definition, design, and testing.
This document discusses the product life cycle (PLC) concept, including its theoretical framework and criticisms. It describes the classic PLC model as having introduction, growth, maturity, and decline stages. Criticisms of PLC include that products are not living things so the biological metaphor is misleading, and the PLC depends on product management not being a predictive tool. The document suggests PLC provides strategic insights but not tactical planning guidance, and discusses variations like stretched PLC models and deviations for fads/fashions.
1. The document discusses the product life cycle and the Boston Matrix as tools for analyzing a company's product portfolio. It describes the stages of the product life cycle and the four categories in the Boston Matrix.
2. It explains the relationship between the two tools, noting that the product life cycle focuses on a single product over time while the Boston Matrix analyzes a company's entire portfolio. Certain stages, like maturity, align between the two approaches.
3. Effectively managing a balanced portfolio across the life cycle stages and Boston Matrix categories is important for maintaining cash flow and investing in new products. The tools can help companies assess strengths, allocate resources, and make strategic decisions.
The document provides an overview of product life cycle (PLC) analysis, which describes how sales of a product evolve over time through four distinct stages: introduction, growth, maturity, and decline. It explains the characteristics and appropriate marketing strategies for each stage. For example, during introduction sales are low but advertising is high, while growth focuses on increasing sales and consumer loyalty. The document also cautions that PLC analysis has limitations and provides a case study analyzing the retail coffee industry through the PLC framework.
The document discusses new product development and product life cycle strategies. It covers major stages in new product development including idea generation, screening, concept development and testing. It then discusses marketing strategy development, business analysis, product development, test marketing and commercialization. It also discusses the product life cycle and how it can vary for different product classes, brands and industries. It notes challenges in identifying a product's stage in the life cycle and forecasting sales.
1. The document discusses strategic cost management and new technologies. It emphasizes the importance of strategic thinking, flexibility, and an integrative approach across business functions in a dynamic competitive environment.
2. It describes the value chain and cost life cycle, highlighting how managing costs upstream can eliminate unnecessary costs compared to downstream cost control. Quality design and cost management are preferable to quality inspection and cost control.
3. The sales life cycle and strategic pricing over the product life cycle are examined. Early differentiation gives way to cost leadership as competition increases in later phases. Lifecycle costing helps minimize total costs across the entire life cycle.
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin
noorulhadi Lecturer at Govt College of Management Sciences, noorulhadi99@yahoo.com
i have prepared these slides and still using in mylectures, Reference: Portfolio management by S kevin and onlin.
This document discusses life cycle costing and product life cycles. It begins by explaining that life cycle costing involves tracking costs over a product's entire lifespan from development through maturity and decline. It then outlines the typical phases of a product life cycle: development, introduction, growth, maturity, and decline. Several key aspects of life cycle costing are explained, including that costs are accumulated over the entire lifespan rather than just production costs. The document provides an illustration of calculating the cost per unit over a solar panel's life cycle to determine the appropriate price. It concludes by discussing how to maximize returns through various strategies like minimizing costs and time to market.
The document discusses the product life cycle concept, which suggests that products pass through four stages - introduction, growth, maturity, and decline. Each stage is characterized by different sales, costs, profits, and marketing strategies. The introduction stage involves low sales and high costs as products are new. Growth sees rising sales and profits as distribution expands. Maturity involves maximizing profits through brand and model diversification. Finally, decline has falling sales and profits as products are phased out. The concept is based on assumptions like stages varying in length and not all products passing through every stage.
This document discusses industry and company analysis for fundamental analysis. It covers analyzing industries based on their life cycle stage, including introduction, growth, maturity, and decline. Key points include industries being classified by product and passing through similar stages as products with changing costs, sales, competition and profits over time. The implications for investors depend on the development stage of an industry. Industry analysis also considers the cost structure, specifically the fixed and variable costs, and how this impacts the break-even point.
The document discusses the product life cycle (PLC) concept in marketing management. It describes the PLC as having four main stages: introduction, growth, maturity, and decline. During each stage, the firm should employ different marketing strategies to build awareness, market share, and profits. Examples are given of products like TVs and discs that demonstrate the different PLC stages. The conclusion emphasizes how understanding and managing products across their lifecycles can improve profitability.
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Product Life Cycle Management in Apparel Industry
Product Life Cycle Estimation
A. Abstract
B. An Introduction to Product Life Cycle (PLC)
The product life cycle describes the period over which an item is developed, brought to market and eventually removed from the market.
This paper describes a simple method to estimate Life Cycle stages – Growth, Maturity, and Decline (as seen in the traditional definitions) of
products that have historical data of at least one complete life cycle.
Here, two different calculations have been done which helps the business to identify the number of weeks after which a product moves to a
different stage and apply the PLC for improving demand forecasting.
A log-growth model is fit using Cumulative Sell through and Product Age which helps to identify the various stages of the product. A Log-Linear
model is fit to determine the rate of change of product sales due to a shift in its stage, cet. par.
The life span of a product and how fast it goes through the entire cycle depends on market demand and how marketing instruments are used and
vary for different products. Products of fashion, by definition, have a shorter life cycle, and they thus have a much shorter time in which to reap
their reward.
Historically, PLC is a concept that has been researched as early as 1957 (refer Jones 1957, p.40).The traditional definitions mainly described 4 stages
– Introduction, Growth, Maturity, and Decline. This was used mainly from a marketing perspective – hence referred to as Marketing-PLC.
With the development of new types of products and additional research in the field, Life Cycle Costing (LCC) and Life Cycle Assessment (LCA) were
added to the traditional definition to give the Engineering PLC (or E-PLC). This definition considers the cost of using the product during its lifetime,
services necessary for maintenance and decommissioning of the product.
According to Philip Kotler, ‘The product life cycle is an attempt to recognize distinct stages in sales history of the product’. In general, PLC has 4
stages – Introduction, Growth, Maturity, and Decline. But for some industries which consist of fast moving products, for example, apparel PLC can
be defined in 3 stages. PLC helps to study the degree of product acceptance by the market over time which includes major rise or fall in sales.
PLC also varies based on product type that can be broadly divided into
1. Seasonal: Products that are seasonal (for e.g. mufflers, that are on shelves mostly in winter) have a steeper incline/decline due to the
short growth and decline periods
2. Non-Seasonal : Products that are non-seasonal (for e.g. jeans, that are promoted in all seasons) have longer maturity and decline
periods as sales tend to continue as long as stocks last
“Watch the product life cycle; but more important, watch the market life cycle”– Philip Kotler
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Definition of Various stages of PLC
Market Development & Introduction
This is when a new product is first brought to market before there is a proved demand for it. In order to create demand, investments are made with
respect to consumer awareness and promotion of the new product in order to get sales going. Sales and Profits are low and there are only a few
competitors in this stage.
Growth
In this stage, demand begins to accelerate and the size of the total market expands rapidly. The production costs and high profits are generated.
Maturity
The sales growth reaches a point above which it will not grow. The number of competitors increases and so market share decreases. The sales will
be maintained for some period with a good profit.
Decline
Here, the market becomes saturated and the product is no longer sold and becomes unpopular. This stage can occur as a natural result but can
also be due to introduction of new and innovative products and better product features from the competitors
This paper deals with the traditional definition of PLC and the application in Fashion products.
C. Why do businesses need PLC and how does it help them?
Businesses have always invested significant amounts of resources to estimate PLC and demand. Estimating the life cycle of a new product accurate-
ly helps business take several key decisions, such as : –
• Provide promotions and markdowns at the right time
• Plan inventory levels better by incorporating PLC in demand prediction
• Plan product launch dates/season
• Determine the optimal discount percentages based on a product’s PLC stage (as discussed later in this paper)
Businesses primarily rely on the business sense and experience of their executives to estimate a product’s life cycle. Any data driven method to
easily estimate PLC can help reduce costs and improve decision making.
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D. How does the solution in this paper help?
The solution detailed in this paper can help businesses use data of previously launched products to predict the life cycles of similar new products.
The age at which products transition from one life cycle phase to another as well as the life cycle curves of products can be obtained through this
process. This also helps to identify the current stage of the products and the rate of sales growth during stage transition.
Below is an overview of the steps followed to achieve these benefits:
E. Detailed Approach to estimate PLC
The process followed to determine the different PLC stages is a generic one that can be incorporated into any model. However, in this paper, we
have described how it was employed to help determine the effect of different PLC stages on sales for the apparel industry.
The procedure followed has been described in detail in the steps below:
i. Product Segmentation
The first step in estimating PLC is to segment products based on the features that primarily influence sales.
To predict the life cycle factor in demand prediction of a new product, we need to find similar products among those launched previously. The life
cycle of the new product can be assumed to be similar to these.
ii. Identification of PLC stages
To identify various stages, factors like Cumulative Sell through rate and Age of product were considered. The number of weeks in each stage was
calculated at category level which consists of a group of products.
Cumulative sell through is defined as the cumulative Sales over the period divided by the total inventory at the start of the period. Sales of
products were aggregated at category level by using the sum of sales at similar product age. For example, Sales of all products when the age was
1 week being aggregated, to get the sales of that category on week 1.
• To identify products similar to a newly released product, we clustered products based on the significant factors affecting sales. This
gives us a chance to obtain a data based PLC trend
• Next, sales is used to plot the Cumulative Sell Through Rate vs Product Age (in weeks)
• A log-growth model fit across this plot will provide the Life Cycle trend of that product or cluster of products
• The second differential of this curve can be analyzed to identify shifts in PLC phases, to estimate the durations of each of the PLC phases
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Note: Φ1, Φ2 & Φ3 are parameters that control the asymptote and growth
of the curve.
Using inflexion points of the fitted curve cut-off for different phases of
product life cycle were obtained.
The fitted curve had 2 inflexion points that made it easy to differentiate the PLC stages
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The plot above shows the variation of Cumulative sell through rate (y-axis) vs Age (x-axis). The data points are colored based on the PLC life stage
identified: Green for“Growth Stage”, Blue for“Maturity Stage”and Red for“Decline Stage”.
Other Methods explored
Several other methods were explored before determining the approach discussed in the previous section. The decision was based on the advan-
tages and drawbacks of each of the methods given below:
Method 1:
Identification of PLC stages by analyzing the variation in Sell through and Cumulative Sell through
Steps followed:
• Calculated (Daily Sales / Total Inventory) across Cumulative Sell through rate at a category level•
• A curve between Cumulative Sell through rate (x-axis) and (Daily Sales / Total Inventory) in the y-axis was fitted using non-linear least
square regression
• Using inflexion points of the fitted curve cut-off for different phases of product life cycle is obtained
Advantages: The fitted curve followed a‘bell-curve’shape in many cases that made it easier to identify PLC stages visually
Drawbacks: There weren’t enough data points in several categories to fit a‘bell-shaped’curve, leading to issues in the identification of PLC stages
6. The plot above shows the variation of Total Sales (y-axis) vs Age (x-axis). The data points are colored based on the PLC life stage identified: Green
for“Growth Stage”, Blue for“Maturity Stage”and Red for“Decline Stage”.
Method 2:
Identification of PLC stages by analyzing the variation in cumulative sell through rates with age of a product (Logarithmic model)
Steps followed:
• Calculated cumulative sell through rate across age at a category level
• A curve between age and cumulative sell through rate was fitted using a log linear model
• Using inflexion points of the fitted curve cut-off for different phases of product life cycle is obtained
Drawbacks:
Visual inspection of the fitted curve does not reveal any PLC stages
This method could not capture the trend as accurately as the log-growth models
The plot above shows the variation of Cumulative sell through rate (y-axis) vs Age (x-axis). The data points are colored based on the PLC life stage
identified: Green for“Growth Stage”, Blue for“Maturity Stage”and Red for“Decline Stage”.
After identifying the different PLC phases for each category, this information can be used directly to determine when promotions need to be
provided to sustain product sales. It can also be incorporated into a model as an independent categorical variable to understand the impact of the
different PLC phases on predicting demand.
In the context of this paper, we used the PLC phases identified as a categorical variable in the price elasticity model to understand the effect of each
phase separately. The process was as follows:
The final sales prediction model had data aggregated at a cluster and sales week level. PLC phase information was added to the sales forecasting
model by classifying each week in the cluster-week data into “Growth”, “Maturity” or “Decline”, based on the average age of the products in that
cluster and week.
This PLC classification variable was treated as a factor variable so that we can obtain coefficients for each PLC stage.
The modeling equation obtained was:
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F. Application of PLC stages in Demand prediction
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7. The method described in this paper enables identification of PLC stages for the apparel industry and demand prediction for old and new products.
This is a generalized method and can be used for different industries as well, where a product may exhibit 4 or 5 stages of life cycle.
One of the drawbacks of product life cycle is that it is not always a reliable indicator of the true lifespan of a product and adhering to the concept
may lead to mistakes. For example, a dip in sales during the growth stage can be temporary instead of a sign the product is reaching maturity. If
the dip causes a company to reduce its promotional efforts too quickly, it may limit the product’s growth and prevent it from becoming a true
success.
Also, if there are a lot of promotional activities or discount are applied, then it’s difficult to identify the true-life cycle.
In the above equation,“PLC_Phase”represents the PLC classification variable. The output of the regression exercise gave beta coefficients for the
PLC stages“Growth”and“Maturity”with respect to“Decline”.
The “Growth” and “Maturity” coefficients were then treated such that they were always positive. This was because “Growth” and “Maturity” coeffi-
cients were obtained w.r.t.“Decline”and since“Decline”had a factor of 1, the other 2 had to be greater than 1.
The treated coefficients obtained for each cluster were used in the simulation tool in the following manner (more details given in tool documenta-
tion):
If there is a transition from“Growth”to“Maturity”stages in a product’s life cycle – then the PLC factor multiplied to sales is (“Maturity”coefficient /
“Growth”coefficient)
If there is a transition from“Maturity”to“Decline”stages in a product’s life cycle – then the PLC factor multiplied to sales is (“Decline”coefficient /
“Maturity”coefficient)
If there is no transition of stages in a product’s life cycle, then PLC factor is 1.
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• https://insight.kellogg.northwestern.edu/article/how-to-predict-demand-for-your-new-product-2
• http://www.investopedia.com/terms/p/product-life-cycle.asp
• http://www.economist.com/node/14301365
• https://hbr.org/1965/11/exploit-the-product-life-cycle
• http://fashion2apparel.blogspot.in/2017/04/apparel-product-life-cycle.html
• https://www.interaction-design.org/index.php/literature/article/how-to-use-the-product-life-cycle
• https://bscheng.com/2014/05/07/modeling-logistic-growth-data-in-r/
References
G. Conclusion
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