Because economic conditions change and competitive activity varies, companies normally must reformulate their marketing strategy several times during a product’s life cycle. Technologies, product forms, and brands also exhibit life cycles with distinct stages. The life cycle stages are usually introduction, growth, maturity, and decline. Most products today are in the maturity stage.
Each product life cycle stage calls for different marketing strategies. The introduction is marked by slow growth and minimal profits. If successful, the product enters a growth stage marked by rapid sales growth and increasing profits. There follows a maturity stage in which sales growth slows and profits stabilize. Finally, the product enters a decline stage. The company’s task is to identify the truly weak products, develop a strategy for each, and phase them out in a way that minimizes impact on company profits, employees, and customers.
Like products, markets evolve through four stages: emergence, growth, maturity, and decline.
2. INTRODUCTION STAGE
1. INDUCE PRODUCT TRIAL
• Gmail came up with its new email app, INBOX
• It was initially marketed through an INVITE-
ONLYmodel
3. INTRODUCTION STAGE
1. INDUCE PRODUCT TRIAL
• Uber and other taxi aggregators promote a
referral program, which helps both the
referrer and referee to earn FREE RIDES
• Also helps in increasing customer base
organically
4. INTRODUCTION STAGE
1. INDUCE PRODUCT TRIAL
LAUNCH BETA VERSIONS
• Launching Beta versions help in testing the market and
the product
• Popular online youth entertainment network, The Viral
Fever has ventured into 2 new product domains which
are in their Beta phase:
a) TVF PLAY, a premium content hosting/ creating portal
b) TVF INBOX OFFICE, an on demand online movie
streaming portal
5. INTRODUCTION STAGE
2. INFORM POTENTIAL CUSTOMERS
Make
PUBLIC ANNOUNCEMENTS
Reliance Jio in
testing phase
Reliance Jio is
present in 29
states
Reliance Jio laid
250,000 km of
fibre optics
Jio to double
fibre optic
network in 1 year
6. INTRODUCTION STAGE
2. INFORM POTENTIAL CUSTOMERS
Create a HYPE
• With the launch of every new
Apple product, rumors start
floating
• User-Generated ‘leaked photos’
create a buzz
• From the release date, to the
product features, everything is
anticipated
7. INTRODUCTION STAGE
2. INFORM POTENTIAL CUSTOMERS
Launch CONCEPT MODEL
• DC Design launched India’s first home manufactured super-car concept in 2012
• After gaining positive response from the public, it is now in its production stage
8. INTRODUCTION STAGE
BE A PIONEER OF THE INDUSTRY
• Pioneers create a
market
• They get the FIRST
MOVER ADVANTAGE
• They can penetrate the
market by the time a
competitor comes and
imitates them
9. GROWTH STAGE
IMPROVE EXISTING PRODUCT
Brands improve product quality, add new features and improve styling and aesthetics
11. GROWTH STAGE
INCREASE DISTRIBUTION COVERAGE
• India is the only country where Domino’s is
double the size of McDonald’s
• The primary reason why Domino’s is the
market leader in India is because of its
extensive coverage
• It has more than 818 stores across 173 cities,
while McDonald’s has less than 400 stores in
the country
• It plans to touch 2,000 stores by 2020
14. MATURITY STAGE
PRODUCT MODIFICATION
• YepMe.com initially worked on the horizontal ecommerce
model, where they sold multiple brands.
• They changed their product strategy and transformed
themselves as a single private label brand.
15. MATURITY STAGE
MARKET MODIFICATION
• Pretty Secrets was launched as a night wear & lingerie brand
available across 250 offline stores
• Since, the market was predominantly controlled by unorganized
retail, the brand went digital and discontinued it brick & mortar
operations
16. MATURITY STAGE
MARKETING PROGRAM MODIFICATION
• Frooti went through a rebranding
exercise this year, making the new logo
appear more bold & strong.
• REASON: Frooti wanted to reposition
itself from a children centric brand to a
youth centric brand.