Plc of Web Browsers

8/8/2019 Plc of Web Browsers

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Mohit kukrejaPrateek Agarwal

Shobhit JainVaibhav Mittal

PRODUCT LIFE CYCLE


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The course of a products sales and profits over itslifetime is called the Product Life Cycle.

The product life cycle is based upon the biologicallife cycle

The PLC concept applies differently in each case.

Not all the product follows the product life cycle.

INTRODUCTION


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PLC


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DeclineRevival

Maturity

GrowthStage

Introductio

n

Stage


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Introduction Stage.. Sales growth tends to be slow at this stage.

Cost per customer is high.

Negative profits.

Competitors are few.

The marketing objective is to createproduct awareness.


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y Advertising & Promotional expenditures areat their highest ratio to sales- to rapidlyincrease customer awareness of the productand to target the early adopters.

y Higher costs coupled with low sales volumeusually make the introduction stage a period

of negative profits.


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Marketing Strategies

Product - one or few products, relatively undifferentiated.

Price High -Skim price strategy- High profit margins to

recoup development costs quickly Low- Penetration Pricing strategy to gain market

share rapidly.

Distribution - Distribution is selective and scattered as thefirm commences implementation of the distribution plan.

Promotion - Promotion is aimed at building brand awareness

Advertising High.


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Eg IE

y Launched in 1995.

y Bundled with the windows operating system

y User friendly

y Competitors: Netscape-(world's most popular

browser, accounting for 90% of all Web use at its peak)


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DeclineRevival

Maturity

Growth

StageIntrodu-ction

Stage


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Growth Stage

Rapidly rising sales.

Rising profits.

Unit manufacturing cost declines.

The marketing objective is to maximizemarket share.


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Product New product features, packaging,improvement of quality.

Price Maintained at a high level if demand ishigh, or reduced to capture additionalcustomers.

Distribution - Distribution becomes more

intensive. Promotion- Increased advertising to build

brand preference.


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Example continued

IE (1996-2000)

Completely rebuilt Internet Explorer technology

Included features that were revolutionary for the time

y User base increased.

y 95% market share.

y No.1 brand.

y User friendly


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IntroIntro GrowthGrowth

DeclineRevivalDeclineRevival

MATURITY

Stage


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Maturity Stage

Sales are at peak.

Profits are high.

Cost per customer low.

The marketing objective is to maintain orextend the market share.


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Competition may result in decreased marketshare and/or prices.

The competing products may be very similar atthis point, increasing the difficulty ofdifferentiating the product.

The firm places effort into encouraging :-competitors' customers to switch,increasing usage per customer, andconverting non-users into customers.

Sales promotions may be offered to encourageretailers to give the product more shelf spaceover competing products.


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Product Modifications are made and featuresare added in order to differentiate theproduct from competitors.

Price - Possible price reductions , avoiding aprice war.

Distribution more intensive.

Promotion Emphasis on building of brandloyalty


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Example continued

IE (2000-04)

y Introduced new Version IE6 in 2001 with Windows

XP.

y more private, reliable, and flexible technology than

previous versionsy Easily downloadable.

y User feedback.

y Market Saturation.


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Example continued

Market Share of Internet Browsers


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IntroIntro

GrowthGrowth

MaturityMaturity

Decline

&Revival


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Decline Stage

Sales started declining

Profits are at decline

Cost per customer still at low

The marketing objective is to reduce theexpenditure


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Options:

y Maintain the product in hopes that competitorswill exit. Reduce costs and find new uses for theproduct.

y Harvest it, reducing marketing support andcoasting along until no more profit can be made.

y Discontinue the product when no more profitcan be made or there is a successor product.


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Product The number of products in theproduct line may be reduced. Rejuvenatesurviving products to make them look newagain.

Price - Prices may be lowered.

Distribution - Distribution becomes moreselective. Channels that no longer areprofitable are phased out.

Promotion - - Expenditures are lower and aimedat reinforcing the brand image for continuedproducts.


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Example continued

IE(2005-)

y Big Time Downfall in user base.

y Marketing objective is to save

market share.

y

New & innovative products launched.y Failure to attract new customers.


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Example continued


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New releases of IE

y Reintroduced in 2006 (IE7) and 2009 (IE8)

y Trying to match competitors level.

y Focus on overcoming shortcomings.

y New & Interesting features like tabbed

brow

sing, multiple-

engine search box and many more


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Are you a frequent internet usery 100% respondents answered yes

y 20% internet explorer

y 45% crome

y 25% mozilla

y 10% others

y The %age ofIE is lower as the survey was conducted among thepeople who are well aware of better alternatives.

Which browser are you currently

using


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Have you ever used IE

y 100% said yes

y 80% no

y 20% yes

Were you satisfied


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Problems faced

y Slow speed

y Frequent virus attacks

y Frequent crashes

y Pop ups


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CONCLUSION

y Earlier most famous & widely used IE has now lost its fan

following

y Experts do not favor or recommend it any more.

y Better alternatives have come up, and acquired its loyal

customers, with time,


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Future Strategyy Improving technology from developers point of view

- Abhinav Gupta (Team Lead- IBM)

y Improving IE on mobile

-Anurag Baliyan (Network Engineer)

y Inclusion of add-ons

-Lokendar Pal Singh (Marketing Manager Fidelity)

y Improving Security

- Harish Gupta (Sr. software developer- oracle)


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THANK YOU !!

Plc of Web Browsers

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