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Product Life Cycle Presentation
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04/10/2023 IIM Raipur 1
Product Life Cycle- Stages and Strategies
Vikas 12PGP050Komal 12PGP
Prateek 12PGP110Srishti 12PGP043Sourav 12PGP042
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PLC- Overview• Every product has a life in a market.• Tenure of the life is uncertain.• Stages in PLC:
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PLC Implications
• Products have a definite life period.• Product sales pass through distinct stages with
each stage posing Challenges/Opportunities/ Problems.
• Profits rise/fall during different stages of product life cycle.
• Products require different marketing strategies at each stage
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PLC- Stages
• Introductory Stage- Product just introduced in the market.
• Growth Stage- Sales are rising.• Maturity Stage- Sales do not rise any further.• Decline Stage- Sales are falling.
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Time
ProductDevelop-
ment
Introduction
Profits
Sales
Growth Maturity Decline
Losses/Investments ($)
Sales andProfits ($)
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Introductory Growth Maturity Decline
• Product has just been introduced in the market.
• Product shows slow sales growth.• Profits are Low or negative as as RnD costs
might have been incurred, also, no economies of scale advantage as low sales.
• Little or no competetion faced• Pioneers adopt the product
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• Product: Basic• Distribution: Selective
Introductory
Growth
Maturity
Decline
Pric
e
AD
AS
HIGH LOW
HIGH Rapid Skimming Rapid Penetration
LOW Slow Skimming Slow Penetration
Pricing
Promotion
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Rapid Skimming Strategy
• new product is launched at high price with high promotion level
• High price helps firm to recover max profits/ units.• High promo helps in customer awareness/ adoption.• This policy is fruitful under following conditions:
– Large part of product market is unaware of product.– Those who become aware are eager to have it & can pay
asked price.– Firm faces potential competition & wants to build brand
preference.
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Slow Skimming Strategy
• New Product launched at high price with low promotion.• High price helps firm to recover maximum profits /units.• Low promo keeps marketing expenses down.• Combination is expected to skip high profit from the
market.• This strategy is used under following conditions
– Market size is limited.– Market is aware of product.– Buyers are willing to pay high price.– Potential competition is not imminent.
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Rapid Penetration Strategy
• New Product launched at low price with high promotion.• Helps to achieve:• Fastest market penetration.• Largest market share.• This strategy is used under following conditions
– Market is large.– Market is unaware of the product.– Buyers are price sensitive.– Strong product competition exists.– Costs likely to decreases with volume.– Example: Reliance Hungama, Nirma, and Wheel
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Slow Penetration Strategy
• New Product launched at low price with low promotion.
• Low price encourages rapid product acceptance,• Low promotion cost helps retain profits.• This strategy is used under following conditions
– If market is large.– If market is highly aware of product.– If market is price sensitive.– If market is minimally sensitive to promotion.– If Product competition exists.
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• Sales rising exponentially• Sales limited by production
Capacity.
• Profit increasing.• “Sales Pull”• Product
Introductory
Growth
Maturity
Decline
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
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ProductProduct
PricePrice
Offer product extensions, service, warranty
Price to penetrate market
DistributionDistribution Build intensive distribution
AdvertisingAdvertising Build awareness and interest in the mass market
Introductory Growth Maturity Decline
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Peak sales
Low cost per customer
High profits
Maximize profit while defending
market share
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ProductProduct
PricePrice
Diversify brand and models
Price to match or best competitors
DistributionDistribution Build more intensive distribution
AdvertisingAdvertising Stress brand differences and benefits
Introductory
Growth
Maturity
Decline
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the brand
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Introductory
Growth
Maturity
Decline
ProductProduct
PricePrice
Phase out weak itemsPhase out weak items
Cut priceCut price
DistributionDistribution Go selective: phase out unprofitable outlets
Go selective: phase out unprofitable outlets
AdvertisingAdvertising Reduce to level needed to retain
hard-core loyal customers
Reduce to level needed to retain
hard-core loyal customers
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PLC Variants- Style•PLC Graph is shown on the right.•Style is a basic/distinctive mode of expression appearing in a field of human endeavors.•Once a style is invented, it can last for generations, at times going in/ going out.•A style has a cycle showing several periods of renewed interest.Example: Styles appear in homes (colonial, ranch, transitional), Clothes(formal and casual) and art(realist, surrealist, abstract).
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PLC Variant- FashionFashion is a currently accepted/popular style in a given field.For Example: The more formal business attire Clothes: Jeans, Music: Hindi-Pop.- Fashion Pass through four Stages:•Distinctiveness Stage: Same customer take interest in something new that sets them apart.•Emulation Stage:Other customers take an interest out of desire to emulate fashion leaders.•Mass-Fashion Stage: Fashion becomes very popular & manufacturing gear up for mass production.•Decline: Consumer starts moving towards other fashion.
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PLC Variant- FadFads are those periods which have temporary unusually high sales driven by consumer enthusiasm. In this duration the product or brand gets immediate popularity. Some important points of fads are written below:•Fads is kind of fashion that comes quickly into the public eye. It gets adopted with great zeal, peak easily and decline fast too.•It has short acceptance cycle.•Fads tend to have limited followings•For Example: Pepsi Blue, Yo Bike, Pager.
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CASE LETS ON DIFFERENT MARKETING STRATEGIES
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Maruti 800
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Introduction Stage
• Period duration of 1983-1986• Maruti launched 1st 800 in Indian market in
1983• Cheapest Car in Indian market• Also sold to countries of South Asia and South
America market
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Marketing Strategy In Introduction Stage
• Rapid Penetration Marketing Strategy was used in this stage.
• Exported to countries like South Asia and South American market to increase number of customers.
• Labeled as Cheapest car for Indian Market• Initially First car was presented to Lord
Venkateshwara of Tirumala Venkateshwara Temple as Promotion
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Growth Stage
• This stage is of the duration of 1987-1996• Sales increased from about 63763 units to
about 189061 units in 1996• Different features were implemented in basic
car model.
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Marketing Strategy Used in Growth Stage
• Maruti 800 came up with new feature like AC version and music system
• First export began in 1987
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Marketing Strategy In Maturity Stage
• Maturity stage was for the duration of 1997-2002
• Launched revamped version of Maruti 800 EX, with new engine,
• Entry of competitors like General Motors, Ford, Tata
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Marketing Strategy In Maturity Stage Contd.
• Market share beaten by rivals like Hyundai Santro, Daewoo Matiz
• Introduced LPG and CNG variabts, called Maruti 800 Duo with new
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Decline Stage• Period of range 2002-2012• Sales of Maruti went down drastically from
1,51,976 units in the year 2000 to about 69,553 in 2007
• Buyers attracted by high end luxuries small cars
• Sales volume is heavily beaten by competitors like Hyundai i10, Maruti Suzuki swift, Chevrolet Spark
• In 2008-09 experienced sales of only 11,288 units
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Marketing Strategy In Decline Stage
• Stopped the production of Maruti 800• Launched the new model maruti Alto 800 as
replacement of maruti 800
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Product Life Cycle of Hero Honda CBZ
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Introduction Stage
• Hero Honda CBZ was launched in early 1999 by Hero Honda Motors Ltd
• It was the first sports oriented 4-stroke bike
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Marketing Strategy used In Introduction Stage
• It has the feature of larger spring operated nozzle to provide a richer fuel air mixture in to engine for better acceleration.
• Styling of bike was scaled version of famous Honda CB Series
• It was labeled as Fast and Sport looking bike• Target market were young boys in the age 18-30
middle class.• Positioning were bikers who want to live life in
extreme.
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Market Break-up
51%26%
11%
3%3%
Sales
Hero HondaBajajYamhaTVSOTHERS
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Growth Stage Contd..• Sales increased in this stage for Honda CBZ• Promotion is increased in this stage to cope
with competition.
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Product Life Cycle of Tata Nano
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Introduction Stage
• Nano was launched in 2008• Launched with basic model• The Cheapest car in the world• Initial Price Rs 1.26 lakhs on road
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Growth Stage
• Nano is available in tree model ( Nano Basic, Nano CX and Nano LX)
• Sale of Nano in June 2011 approximately 6515
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Marketing Strategy Used By Tata Nano
• Tata motors share promotion of tata brand with its multiple bank partners. These financiers will promote the nano brand during booking jointly with tata motors
• Tata marketing team used various media like radio, news on TV, online games, major website like facebook, orkut etc.
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Nokia Lumia• Nokia lumia a series of smart phone by • nokia• Based on window phone operating system• Deviant of Nokia lumia, Lumia 710,lumia
820, lumia 920• Lumia 920 with 4 GB
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PLC Stage
• Introduced in 2011• Growth stage• Increasing sale
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Target market & Strategies- Lumia
• Targeted for Heightened market
• Rapid skimming strategy
• High promotion
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Sony Bravia
• Facility of HD input
• Different Deviant from size range 56cms to 140 cms
• Price range Available from Rs 15900
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PLC Stage
• Launched in the year 2005• Growth Stage• market share of 32% by value• sale of more than 35 thousand in December
2010• growth of 46% comparing to previous year
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Target market
• Targeted to the age group young generation the age group of 25-45
• Targeted Young family • Targeted to business related personal • Tag Line - More Bright. More Vivid. More Joy.
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Strategy
• Concentration Strategy by targeting specific group
• Differentiation strategy by offering unique value preposition
• Rapid skimming Strategy
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Nokia 800
• 4.0-inch AMOLED Clear Black display with a 360 x 640 pixel resolution
• 16GB internal storage• Memory expandable up to 32 GB via micro SD
car• Bluetooth 3.0 with A2DP, USB 2.0• 41 megapixel camera with Xenon flash,
1080p@30fps video recording
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PLC Stage
• Launched in February 2012• Introduction stage• High premium 24999
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Target Market
• Yong urban male/female• Educated professional • Upper class People
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Strategy
• High premium• Rapid Skimming
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Surf Excel
• Product from HUL• Launched in 1954• Created strong brand over the 5 decades• Market leader for 50 years
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Product range
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Price chart
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PLC Stage
• Maturity Stage• Competitors such as Nirma, Tide, Ghari, Ariel• 38% of detergent market
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Strategy
• An emotional appeal by statement “Dag achhe hain” (dirt is good)
• Extensive advertisement• Rational price • lot of Variant and deviant according to need
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• LUX
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Lux
• World’s first beauty soap targeting upper class market
• Launched in US in 1924 • Launched in India in 1929 • Initially, in India this product was launched in
cities like Calcutta, Mumbai
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Introduction Stage:
• Lux launched the world’s first mass-market beauty soap is the US in 1924
• First launched in India in 1929• Lux over the world UK(1928), SRILANKA(1931),
BRAZIL(1932) PAKISTAN(1957) etc• In this stage, LUX followed Rapid Skimming
strategy.
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Maturity Stage
• Lux product could be found in over 100 countries and they had the sales of 1.0 billion euros in 2005
• In this stage, few competitors enter into the market like (Cinthol, Fairglow, Santoor, Chandrika, Fiama Di Wills and Vivel)
• Competition from its own brand Lifebuoy
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Marketing Strategies Used
• Product: The lux has introduced various modified versions of the product like Lux Almond, Lux Orchid, Lux Fruit, Lux Saffron, Lux sandalwood, Lux Rose, Lux oil and Honey etc.
• Price: The Lux products are now available at higher prices to maximize company profit.
• Distribution: Lux has strong distribution across cities of India.
• Advertising: In the latest campaign the Asit sin and kajal Aggarwal are used as their brand ambassador.
• Promotional Offers: At times Lux has offered Buy3 get 1 Free offer to customers.
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Rapid Skimming Strategy
• Product: Only one basic product without any variants/deviants/frills
• Price: Relatively higher prices, to recover their initial cost of making the product
• Place- Budget allocation was more for advertising, to attract more and more customers.
• Distribution- was selective and only covering the major cities of India.
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Rapid Skimming Strategy
• Promotion: Awareness marketing• Target Market: Upper class market – females
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Low sales
Higher cost per customer
Negative or not very substabtial
Pioneers, early adopters
No competitorsCompetitionCompetition
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Growth stage
• In this stage, for LUX, main objective of LUX was to expand in India
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Marketing Strategy
• Product: Only one basic product without any variants/deviants/frills
• Price: Price Rationalization• Place- Budget allocation was more for
advertising, to attract more and more customers.
• Distribution- expanded the market and now covering the other cities of India as well.
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Marketing Strategy
• Promotion: Affectation Realm (liking + preferences+ conviction)
• Market: Pioneers, early adopters
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Higher sales, growth rate in sales is very high
Average cost per customer
Emerging
Pioneers, early adopters
NegligibleCompetitionCompetition
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Maturity Stage
• In this stage, LUX has expanded its market across India and objective now is to maximize and defend its market share.
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Marketing Strategy
• Product: Product with many variants/deviants/frills- Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose, Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil and Honey etc
• Price: Lux increased its prices to maximize the profit
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Marketing Strategy
• Place- Budget allocation is reduced for advertising, because of the brand awareness in the minds of customers.
• Distribution- Across India • Promotion: Incentives• Market: late majority
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Peak Sales, growth rate of sales=0
Low cost per customer
Highest Profits
maintenance marketing
CINTHOL, FAIRGLOW,SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL
CompetitionCompetition
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Decline
• In-spite of all efforts, Lux is at the decline stage ,
• 1. Unilever products have presence in over 100countries worldwide thus currency fluctuations could play a major role.
• For example in 2004, a 5.9% decline in turnover was primarily due to 4% appreciation in the average Euro exchange rate.
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• 2.In year 2008 – 09 due to economic recession in India and other countries, the sales of LUX got hit hard times.
• 3.Other competition: Lux has been facing competition from HUL itself (Lifebuoy) & from other companies like:-
Godrej Consumer Products :
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• GCPL, India’s second largest soap maker with 9.2% marketshare.•with leading brands such as
• CINTHOL, FAIRGLOW & NIKHAR.• Fairglow brand, India's first Fairness soap, has
created marketing history as one of the most successful innovation in soap industry.
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Marketing Strategy
• Price: Lux increased its prices to maximize the profit
• Place- Budget allocation is reduced for advertising, because of the brand awareness in the minds of customers.
• Distribution- Across India • Promotion: Reduction in expenditures
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Forestalling
Low cost per customer
Loss, CM negative
Reduction in expenditures
CINTHOL, FAIRGLOW,SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL
CompetitionCompetition
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Product Life Cycle Graph
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• Oreo
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Oreo
• Oreo was launched in 1912 in USA• Its production in USA is by Nabisco division of
Kraft Foods. • Till now, Oreo is the best selling cookie in USA.
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Maturity Stage
• Oreo cookie has reached the maturity stage in its life cycle, and the brand has appropriately taken several steps to prevent the cookie from fading out of America’s cookie jars.
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Marketing Strategy
• Product: Leadership in cost, quality and market. Nabisco has launched many different flavors and varieties of the traditional cookie. Some of these include: Chocolate Crème Oreo, Golden Oreo Original, Fudge Covered Oreo, Fudge Mint Covered Oreo, Golden Oreo Chocolate Crème,
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• Double Delight Oreo Mint ‘n’ Crème, Double Delight Oreo Peanut Butter & Chocolate, Milk Chocolate Covered Oreo and Milk Chocolate Covered Mint Oreo. Additionally, Nabisco has released many Oreo baking supplies, such as Oreo Crumbs, Oreo Chocolate Cones, Oreo Jello Pudding… the list goes on.
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Marketing Strategy
• Price: Its charges premium price due to its high price per gram
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• Place- Budget allocation is reduced for advertising, because of the brand awareness in the minds of customers.
• Distribution- Across USA, Argentina, Canada, China, Croatia, Czech Republic, India, Italy, Norway, Poland, United Kingdom, Arab World
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Promotion- Oreo
• With the introduction of new product lines under the Oreo name, the cookie is able to retain the old customers and target new customer base of kids. What Oreo is striving to create is an “Oreo consumer identity,” allowing the consumers to identify themselves by which Oreo suits their individual desires and tastes.
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Peak Sales, growth rate of sales=0
Low cost per customer
Highest Profits
maintenance marketing
Sunshine Bakeries’ Hydrox cookies, Chips Cookies
CompetitionCompetition
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Product Life Cycle Graph
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• Maggi Noodles
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• Nestle Maggi Noodles is brand of instant noodles
• This was launched in India in 1982 • Pioneer in instant noodles- 2minutes
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Introduction Stage
• In this stage, Maggi Noodles followed Rapid Penetration strategy
• It was found by the Maggi family in Switzerland in 19th century
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Growth stage• Few yrs back it enjoyed around 50% market share in this segment
which was valued at around 250 crores.• during the 1990s, the sales of Maggi noodles declined, due to
growing popularity of Top Ramen, and other noodles product • In order to improve sales ,NIL changed the formulation of Maggi
noodles in 1997.• However, this proved to be a mistake, as consumers did not like
the taste of the new noodles.• In March 1999, NIL reintroduced the old formulation of the
noodles, after which thesales revived. Over the years, NIL also introduced several other products like soups and cooking aids under the Maggi brand.
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strategy
• In latest Campaign Amitabh Bacchhan is narrating maggi tales of user.
• New variants are launched with feedback from campaign “Me and MY Maggi”
• Maggi also launched Guess the Taste Commercial
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Rapid Penetration Strategy
• Product: Only one basic product without any variants/deviants/frills
• Price: Relatively lower prices, to penetrate deeper and take the biggest of the market share. Cost plus
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Rapid Penetration Strategy
• Place- Budget allocation was more for advertising, to attract more and more customers.
• Distribution- was selective and only covering the major cities of India.
• Promotion: Awareness marketing• Target Segment: Working Women and children
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Low sales
Higher cost per customer
Negative or not very substantial
Pioneers, early adopters
No competitorsCompetitionCompetition
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Growth Stage
• In this stage, Maggi Noodles main objective was to expand in India
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Marketing Strategy
• Product: New Product with frills- features, packaging, quality
• Price: Price Rationalization• Place- Budget allocation was more for
advertising, to attract more and more customers.
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Marketing Strategy
• Distribution- expanded the market and now covering the other cities of India as well.
• Promotion: Affectation Realm (liking + preferences+ conviction)
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Higher sales, growth rate in sales is very high
Average cost per customer
Emerging
Pioneers, early adopters, 50% market share
Top RamenCompetitionCompetition
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Maturity Stage
• In this stage, Maggi noodles have expanded its market across India and objective now is to maximize and defend its market share.
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Marketing Strategy
• Price: Maggi noodles offered Rs 5 onwards• Place- Budget allocation is reduced for
advertising, because of the brand awareness in the minds of customers.
• Distribution- Across India , more intensive• Promotion: Incentives- Big Promotional Offers
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Peak Sales, growth rate of sales=0
Low cost per customer
Highest Profits
maintenance marketing
Tough Rules of Competition for competitors like Top Ramen
CompetitionCompetition
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Decline Stage:
• Maggi noodles then faced decline stage
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Marketing Strategy
• Product: New products launched but failed• Price: Price could not be lowered further• Place- Budget allocation is reduced for
advertising, because of the brand awareness in the minds of customers.
• Distribution- Across India, selective• Promotion: Reduction in expenditures
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Forestalling
Low cost per customer
Loss, CM negative
Laggards
Tough Competition from competitors
CompetitionCompetition
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Rejuvenation
• Strategy to counter decline: Re-launching • Maggi Noodles was launched again in 1999.
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Marketing Strategy
• Price: Maggi noodles offered Rs 5 onwards• Place- Budget allocation is increased for
advertising, new and interesting advertising campaigns
• Distribution- Across India, more intensive• Promotion: Incentives- Big Promotional Offers• Market: Working Bachelors , children
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Product Life Cycle Graph
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• Nintendo WII
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• Nintendo WII released by Nintendo on November 19 , 2006.
• It’s a home console for video game. • WII has many advanced features compared to
previous Nintendo consoles.
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• WiiConnect24-enables it to receive messages and updates through internet even standby mode.
• Nintendo Wii is the successor of Game Cube.• In late of 2011, Nintendo reconfigured the
model – Wii Family Edition. • This edition was not compatible with
Nintendo GameCube.
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Product Life Cycle
• Maturity Stage
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Maturity Stage
Product:• Motion Sensitivity • IR Sensors• Port to allow for a variety of Controller• Add ons• Classic controller can also be used for many
WII
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Pricing:• $250- lower than while XBOX and Play-station
3• Games cheaper than XBOX and Play-station 3
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• Promotion• 1.Mass selling• 2.Uses Intermediaries-GameStop,
Hypermarket , Mall• 3.Push/Pull Techniques
• Nintendo WII offers a free game and WIFI connection + updates.
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• Place: Distribution Centers across the globe.
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Peak Sales, growth rate of sales=0
Low cost per customer
Highest Profits
maintenance marketing
Tough Rules of Competition for competitors like XBOX and Play- station 3
CompetitionCompetition
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Product Life Cycle Graph
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• Nokia 6600
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• This product when launched was the premium product of Nokia• It build the brand of Nokia• Most popular brand of Nokia
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Product Life Cycle
• Decline stage• When Nokia 6600 was in decline stage, Nokia
decided to stop its production• The product was blocked from production
since 1997
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Marketing Strategy
• Sales- sales were freely falling. • Market – Market now Laggards, which
comprise of 16% of the market.• Profit-Loss, Contribution margin=Unit Selling
Price –Unit Variable Cost becomes negative
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Strategy- Nokia
• Strategy of the company: Closure• Nokia preferred to stop the production of the
product because with price rationalization of Nokia 6600, within range of 4000-6000 and with the expandable memory and installation capacity, it occurred as a threat to the higher range mobiles of Nokia itself.
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Product Life Cycle Graph
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• KFC
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KFC
• Kentucky Fried Chicken-is chain of fast food restaurants
• They offer chicken with their special secret condiments recipe.
• It entered into the market in 1954 in USA.
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Introduction stage
• By early entry into the market, it managed to have strong name and strong control over the market.
• They followed Rapid Skimming Strategy.
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Rapid Skimming Strategy
• Product: Few basic product without any variants/deviants/frills
• Price: Relatively higher prices, to recover their initial cost of making the product and also to take the advantage of being pioneers in fast food industry
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Rapid Skimming Strategy
• Place- Budget allocation was more for door to door, to attract more and more customers and prospective franchises of USA
• Distribution- was selective and only to franchises in USA
• Promotion: Awareness marketing• Market: Upper Class
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Low sales
Higher cost per customer
Negative or not very substantial
Pioneers, early adopters
No competitors in Chicken ProductsCompetitionCompetition
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Growth Stage
• From 1970’s, 1980’s 1990’s , KFC followed an aggressive strategy of expanding it’s chain across the world
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Marketing Strategy
• Product: More product with many variants/deviants/frills
• Price: Relatively higher prices, to recover their initial cost of making the product and also to take the advantage of being pioneers in fast food industry
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Marketing Strategy
• Place- Budget allocation was more for door to door, to attract more and more customers and prospective franchises of USA and outside USA
• Distribution- was selective and only to franchises in USA
• Promotion: Affectation Realm (liking + believability + conviction)
• Market: Upper Class
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Higher sales, growth rate in sales is very high
Average cost per customer
Emerging
Pioneers, early adopters
Competitors like McDonaldsCompetitionCompetition
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Maturity Stage
• In this stage, KFC has expanded its market across and outside USA and objective now is to maximize and defend its market share
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Marketing Strategy
• Product: Product with many variants/deviants/frills- Chicken wings, Popcorn Chicken, Veg Burgers, Zing kong box
• Price: KFC rationalized its price to expand its
market
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Marketing Strategy
• Place- Budget allocation is reduced for advertising, because of the brand awareness in the minds of customers.
• Distribution- Across and outside USA • Promotion: Incentives
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketingMarketing
Peak Sales, growth rate of sales=0
Low cost per customer
Highest Profits
maintenance marketing
Tough Rules of Competition from competitors like McDonalds
CompetitionCompetition
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Decline Stage
• KFC reaching decline stage because of too many competitors. But they added new features and packages, also new line of desserts to reintroduce their products and thus maintained their position
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Introductory
Growth
Maturity
Decline
SalesSales
CostsCosts
ProfitsProfits
MarketMarket
Forestalling
Low cost per customer
Loss, CM negative
Laggards
Tough Competition from competitors
CompetitionCompetition
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Strategy
• After introduction of desserts line like BrownieSundae and Crushers, KFC was again able to tap the market
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Marketing Strategy
• Price: Price rationalized• Place- Budget allocation is reduced for
advertising, because of the brand awareness in the minds of customers.
• Distribution- Across USA and outside USA • Promotion: Reduction in expenditures• Market: Upper class as well as middle class,
working bachelors
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• Sales: Higher sales, growth rate in sales is very high
• Costs: Average cost of production/customer• Profit: Emerging• Marketing: Pioneers, early adopters, late
adopters , laggards• Competitions- Competitors like McDonalds,
Subway
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Product Life Cycle Graph
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Cinthol
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Introduction stage
• launched in the year 1952• Positioned in the Premium soap segment• Positioned as a masculine brand
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Growth Stage
• Umbrella brand with 3 variant spice, Lime, Colongne
• Competition from other brands• Increase in product line
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Current stage
• Late maturity/ Early decline• Tough Competition from other soap brands• Sales declining • Decrease in profit
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Strategy- Cinthol
• Price range Rs 13 to 20 • More Deviant and variant• Extensive Advertisement
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IPHONE
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iPhone
• Release dates:– Original: June 29, 2007– 3G: July 11, 2008– 3GS: June 19, 2009– 4: June 24, 2010– 4s: October 14, 2011– 5: September 21, 2012
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iPhone
• Price Skimming– iPhone priced at $599 at launch, but at $399 after
just 4 months of launch• Releases a phone every year
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iPhone Worldwide Sales
q3 2007
q4 2008
q1 2008
q2 2008
q3 2008
q4 2008
q1 2009
q2 2009
q3 2009
q4 2009
q1 2010
q2 2010
q3 2010
q4 2010
q1 2011
q2 2011
q3 2011
q4 2011
q1 2012
q2 2012
q3 2012
q4 2012
0
5
10
15
20
25
30
35
40
Series1 Polynomial (Series1)
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TATA INDICA
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Indica- Evolution
• 1998 - Indica announced• 2001 - Indica V2• 2004 - Rejuvenated Indica V2• 2005 - Indica V2 Turbo Diesel• 2006 - Indica Xeta• 2008 - Indica Vista
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Tata Indica- YoY Sales, All India
2000 2001 2002 2003 2004 2005 2006 2007 20080
20000
40000
60000
80000
100000
120000
140000
160000
Sales YoY
Sales
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Tata Indica Strategies
• In Growth Stage as of 2008.
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Eternal Sunshine of the Spotless Mind
Movie Released- Mar ‘04
Movie DVD Released –Oct ‘04
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The Bucket List
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Million Dollar Baby
Movie Released- Dec ‘04
Movie DVD Released- Jul ‘05
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The Pursuit of Happyness
Movie Released- Dec ‘06
Movie DVD Released- Nov ‘07
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Pirates of the Carribean: Dead Man’s Chest
Movie Released- Jul ‘06
Movie DVD Released- Nov ‘06
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THANK YOU