The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

In theory it's the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn.

The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline).

In theory it's the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn.

However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers.

Strategies for the differing stages of the Product Life Cycle.

Introduction.

The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution.

Growth.

Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to stabilise.

Maturity.

Those products that survive the earlier stages tend to spend longest in this phase. Sales grow at a decreasing rate and then stabilise. Producers attempt to differentiate products and brands are key to this. Price wars and intense competition occur. At this point the market reaches saturation. Producers begin to leave the market due to poor margins. Promotion becomes more widespread and use a greater variety of media.

Decline.

At this point there is a downturn in the market. For example more innovative products are introduced or consumer tastes have changed. There is intense price-cutting and many more products are withdrawn from the market. Profits can be improved by reducing marketing spend and cost cutting.

Problems with Product Life Cycle.

In reality very few products follow such a prescriptive cycle. The length of each stage varies enormously. The decisions of marketers can change the stage, for example from maturity to decline by price-cutting. Not all products go through each stage. Some go from introduction to decline. It is not easy to tell which stage the product is in. Remember that PLC is like all other tools. Use it to inform your gut feeling.

Barista – Corporate Profile• Has opened 100 outlets countrywide over last2 yrs• Marked its presence in Sri Lanka and Dubaitoo

• Now targeting 22 international outletsincluding Bangladesh, Bahrain, Qatar,Oman and Kuwait

rketing Mix• Product– Coffee & Tea (Flavours)– Smoothies– Sandwiches– Desserts–Croissants• Quality Check– Every 14 days– Incorporates TQM at its headquarters• Merchandise• Primarily, appeals to traditional coffee lovers

Marketing Mix• Pricing– 10% higher than Competitors

– Prices are lowest they have ever been– High COGS because of Import duties• Process– Self Service• Positioning– Where the world meets

Marketing Mix• People– Well trained employees – to be polite pleasant andpositive– Consistent service at every outlet–Average age – 22yrs

– Ensure to have quiet, uninterrupted visit– Uniforms are in sober shades of brown and orange• Promotion– Sales Promotion

Marketing Mix• Physical Evidence– Logo, colours and images– Décor and architecture– Literature• Place– Outlets located in strategic locations– Generally located at High Street/Familyentertainment centers', in and around malls and

cinemas and offices

SWOT• Strength– Strong Brand Image– Excellent Human Resource– Ambience and décor– Strong base for expansion and growth• Weakness– Average Taste and Quality of Products– Perceived as an expensive brand– Inconvenient delivery process

SWOT• Opportunities– Strong brand recall

– Presence of huge number of outlets– Pricing• Threats– Coffee substitute– Rise in the cost of coffee and dairy products– Competition from national and international players

Objective• 1 year strategy–Increase the footfalls by 30%

Strategy• Repositioning– Position Barista as a niche coffee bar for theprofessionals• PromotionsEvents adeliciousCo-sponsor a program on CNBCAbout AdsExperiential Marketing

Brand Image• Brand for anyone who loves coffee• Where the World meets• Appeal to anyone in the 14-60 age group thatloves good coffee and looks for a nice quiet time

HISTORY

Established in February 2000, Barista Lavazza is noted as a pioneer of Indian café

culture. The Barista Lavazza chain of espresso bars delivers a truly Italian coffee

experience in warm, friendly and relaxed environment. It aims to provide a comfortable

place for people to unwind over interesting conversations and a cup of coffee. Barista

Lavazza consist of young adults, who are exposed to global lifestyles and appreciate the

authentic flavours and tastes of coffee. At last count, the Barista Coffee Company

Limited has over 200 Barista Lavazza Espresso Bars and Barista Lavazza Crèmes in

over 30 cities across India.

Besides the Indian sub-continent, Barista Lavazza also has cafes in locations across Sri

Lanka, Oman and the UAE. Barista is owned by Lavazza, Italy's largest coffee

company. Lavazza, the sixth largest coffee roaster in the world, has a 46.5% share in

the Italian retail market (value, source: Nielsen) and operates in over 80 countries in the

Home and Away-from-Home sectors (Foodservice, Vending and Cafes).

C850 : First known discovery of coffee berries

1600 : Coffee enters to Europe through the port of Venice

1654 : The first coffee house opens in Italy

1750 : One of Europe’s first Coffee house

1822 : Prototype of 1st espresso machine is created in France

1908 : Invention of the world’s 1st drip coffee maker

Feb, 2000: First Barista Lavazza at Basant Lok, New Delhi

At Barista Lavazza our objective is to provide an authentic Italian coffee drinking

experience in a warm, friendly, no pressure environment. We began operations in the

year 2000 as we felt the time was right for the Indian consumer to experience a café that

provided a third space, away from work and home, where the guest could relax and

unwind.