G1 PLC Marketing

8/8/2019 G1 PLC Marketing

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BA 104- MarketingFundamentals and Strategies

Presented by,

Sameer Kumar PatroShradha Verma

Amit KumarPiyush DubeyPrateek JaiswalAbhisekh

Topic- Product Life Cycle

Presented to,

Prof. Anurag S. Yadav


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Basic things...

Product

Goods Services

Solutions

Life cycle


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Marketing StrategyStatement Formulation

Part One - Overall:Target Market

Planned Product PositioningSales & Profit Goals

Market Share

Part One - Overall:Target Market

Planned Product PositioningSales & Profit Goals

Market Share

Part Two - Short-Term:Products Planned Price

DistributionMarketing Budget

Part Two - Short-Term:Products Planned Price

DistributionMarketing Budget

Part Three - Long-Term:Sales & Profit Goals

Marketing Mix Strategy

Part Three - Long-Term:Sales & Profit Goals

Marketing Mix Strategy


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Product Life Cycle. (PLC)

Shows the stages that products gothrough from development to withdrawalfrom the market.


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Why product life cycle?

i. Products have a limited life.

ii. Products sales pass through distinct stages, eachposing different challenges, opportunities andproblems to the seller.

iii. Profits rise and fall at different stages of the productlife cycle.

iv. Products require different marketing, financial,

manufacturing, purchasing, and human resourcestrategies in each life cycle stages.


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The Stages of the Product LifeCycle

1. Development

2. Introduction/Launch

3. Growth

4. Maturity

5. Decline

6. Withdrawal/Death


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Development

Introduction

Growth

Maturity Decline

Death

Time

Sa

les

and

Prof

its


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The Development Stage

Initial Ideas

May come from any of the following Market research

Monitoring competitors

Planned research and development (R&D)

Luck or intuition

Creative thinking

Futures thinking


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Introduction Stage

The seller tries to stimulate demand

Promotion campaigns to get increase public awareness

Explain how the product is used,

Features Advantages Benefits

Sales are low, and profits are below the line because your costs are

greater than the amount of money you make

you have negative profit

Need to spend a lot of money on promotion

You will lose money, but you expect to make profits in the future


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SalesSales

CostsCosts

ProfitsProfits

Marketing ObjectivesMarketing Objectives

ProductProduct

PricePrice

LowLow

High cost per customerHigh cost per customer

NegativeNegative

Create product awareness and trialCreate product awareness and trial

Offer a basic productOffer a basic product

Use cost-plus formulaUse cost-plus formula

DistributionDistribution Build selective distributionBuild selective distribution

PromotionPromotion Heavy to entice product trialHeavy to entice product trial

Summary of Characteristics, Objectives, & Strategies

Introduction Stage of the PLC


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Four Introductory MarketingStrategies

Rapid-Rapid-

skimmingskimmingstrategystrategy

Rapid-Rapid-


Rapid-Rapid-penetrationpenetration

strategystrategy

Rapid-Rapid-penetrationpenetration

strategystrategy

Slow-Slow-penetrationpenetration

strategystrategy

Slow-Slow-penetrationpenetration

strategystrategy

Slow-Slow-


Slow-Slow-


High

Hig

h

Low

Low

Price

Promotion


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Growth Stage

A lot is sold - The seller tries to sell as much aspossible

Other competitor companies watch, and decideabout joining in with a competitor product

Growth will continue until too manycompetitors in the market - and the market is

saturated


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SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

Rapidly risingRapidly rising

Average cost per customerAverage cost per customer

RisingRising

Maximize market shareMaximize market share

Offer extension, service, warrantyOffer extension, service, warranty

Penetration strategyPenetration strategy

DistributionDistribution Build intensive distributionBuild intensive distribution

PromotionPromotion Reduce to take advantage of demandReduce to take advantage of demand


Growth Stage of the PLC


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Marketing Strategies

Improve quality, offer productextensions, add new features etc.

Introduce new distribution channels andenter new market segments.

Reduce promotion to take advantage of

consumer demand.


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Maturity stage

Many competitors have joined - the marketis saturated

The only way to sell is to begin to lower theprice - and profits decrease

It is difficult to tell the different betweenproducts since most have the same F.A.B. -

Features, Advantages & Benefits Competition can get Nasty and

commercials are intense


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SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

PeakPeak

Low cost per customerLow cost per customer

DeclineDecline

Maximize profits while defending marketshare

Maximize profits while defending marketshare

Diversify brand and modelsDiversify brand and models

Match or best competitorsMatch or best competitors

DistributionDistribution Build more intensive distributionBuild more intensive distribution

PromotionPromotion Increase to encourage brand switchingIncrease to encourage brand switching


Maturity Stage of the PLC


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Marketing strategies

Persuasive Promotion becomes moreimportant during this stage

That is to say, you have commercialsalmost begging the customer to still buyyour product because you still make it justas good.

Set price to match or beat the competitor.

Built more intensive distribution.


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Decline stage

Newer products are now moreattractive - even a low price does notmake consumers want to buy.

Profit margin declines - and so the onlyway to make money is to sell a high

volume


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SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

DecliningDeclining

Low cost per customerLow cost per customer

Declining, some times negativesDeclining, some times negatives

Reduce expenditures and milk the brandReduce expenditures and milk the brand

Phase out weak itemsPhase out weak items

Cut priceCut price

DistributionDistribution Selective: phase out unprofitable outletsSelective: phase out unprofitable outlets

PromotionPromotion Reduce to minimum levelReduce to minimum level


Decline Stage of the PLC


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Marketing strategies..

To increase volume you try to

1. Increase the number of customers - get newcustomers2. Increase the amount each customer uses

Search for other alternatives and dropsdeclining items from product line.

Exit from market.


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Death stage

It is the last stage of PLC.

In this stage the product is completelyloose its value or demand in the market.

Generally we are not considering thisstage because in decline stage we

already exit from the market.


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Death stage of PLC

SalesSales

CostsCosts

ProfitsProfits


ProductProduct

PricePrice

ZeroZero

No costNo cost

No profit (loss)No profit (loss)

Stop the businessStop the business

------------

--------------

DistributionDistribution ------------

PromotionPromotion --------------


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Length of Cycle Stages

Products move through the cycle at different speeds

sometimes introduction is very long, or very short,

depending on how easy it is for the public to

understand.

Not all products follow the same pattern

Some products move very fast because they are

new and have no competition so the intro stage isshort, and they go direct to growth stage.


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Product Life Cycle Considerations in Marketing

Strategy

Understand that profits have a predictable

pattern.

In the early stages, focus is on productinformation.

In the later stages, focus is on brand promotion

Use market segmentation in maturity stage to

maintain strong core customer relations.


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Conclusion


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Thank You.

The best example of PLC is we our self.. i.e. our life

G1 PLC Marketing

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