Product life cycle

PRESENTED BY
ADITI SHARMA – 184
ADITYA SURESH – 186
AKASH GUPTA – 188
ALANKAR DAS – 190
AMIT ROY - 192
DEEPAK BAJAJ – 202
GOURAB BANERJEE – 206
3/18/2022 Product Life Cycle - Competitive Marketing

1 INTRODUCTION
2 GROWTH
3 MATURITY
4 DECLINE
1 INTRODUCTION
2 GROWTH
3 MATURITY
4 DECLINE
CONTENTS

INTRODUCTION GROWTH DECLINE
PRODUCT LIFE CYCLE
MATURITY

COMPANY PROFILE
TYPE : PUBLIC COMPANY
FOUNDED : 1981
HEADQUARTERS : NEW DELHI, INDIA
KEY PEOPLE :RC BHARGAVA ( CHAIRMAN ), KENICHI AYUKAVA ( CEO )
REVENUE : $369.34 BILLION

Took 2 years for Maruti & Suzuki to sign
the dotted line
First car imported, assembled and sold
in 1983
Cheapest car in the market
Huge gap between demand and supply
Waiting list often took upto 3 years to
clear
Targeted urban areas, “Consumers who
desire for a car”
Based on SS80, Suzuki fronte
SCENARIO INTRODUCTION
STAGE ( 1983 – 1986 )

MARUTI 800
PRODUCTS

Engine 796cc
Power 39bhp
Car
weight
600kg
Mileage
18.2
kmpl
Capacity
4
person
PRODUCT SPECIFICATION

Pricing
strategy
Ex-
Showroom 47500
On Road 52500
PRICE
SLOW
SKIMMING

1. Keys handed over to the first owner
Harpal Singh by the then PM Mrs.
Indira Gandhi
2. “People’s Car” : Sanjay Gandhi
PROMOTION
“SMALL IS BEAUTIFUL”

NEWSPAPER ADS

TV COMMERCIAL

Consumers
Dealers/Distributors
Assembly Unit (Gurgaon)
DISTRIBUTION

Expectations from people matched product
promise
Production of 65% components in India by
1991
Liberalization of Indian economy
New opportunities opened
Objective to increase the market shares
A lot of 500 units exported to Hungary
GROWTH STAGE ( 1987 – 1996 )

SALES
0 50000 100000 150000 200000
1983
1987
1989
1996
1983 1987 1989 1996
Unit sold 852 20,269 63736 189061
Unit sold

PRODUCT VARIANTS
MARUTI 800 AC UNIQ MARUTI- BASIC MODEL

Air-Conditioning
variant
Music System
Maruti 1000, the
first
contemporary
sedan unleashed
PRODUCT SPECIFICATION

PRICE

“CHANGE YOUR LIFE”
Occasional discounts
given by the dealers
PROMOTION

PRINT MEDIA ADS

TV COMMERCIAL
• VideoMaruti Suzuki 800-Change Your Life
Commercial - YouTube_2.FLV

DISTRIBUTION
Consumers
Dealers/Distributors
Assembly Unit (Gurgaon)

Sales touched 200,000 mark in 1999
Entry of competitors like General
motors, Ford, Tata
40 million two wheeler owners targeted
Repositioning of Maruti Products
New soft edged jelly bean shape
introduced in 1997
Maruti 800′s carburetor with fuel
injection
MATURITY STAGE ( 1997 – 2002 )

PRODUCT VARIANTS
MARUTI 800 EX MARUTI 800 DUO

Shock
Absorbers
Gas
charged
Suspension
Coil Spring
based
MARUTI 800 EX

1. Air conditioned
2. Green tinted glass
3. Front bucket seats with larger
armrests
4. Vanity mirror for co-driver
MARUTI 800 DUO

1.Slashed its prices
2.Insurance offered for Re.
1 only
3.Service network of
Maruti covered 1314 cities
PROMOTION

1. 250 customer service outlets
along 20 highway routes
2. Pick and drop service facility
for servicing
3. Express Service to ensure
minimum time consumption
SERVICE

MARUTI SERVICE STATION

PRODUCT WEBSITE

VideoMaruti 800 DUO LPG
TV Commercial (2008) -
YouTube.FLV
TVC

1. Heavy Competition from
Alto, i10, Spark etc.
2. Drastic decrease in sales
3. Just 1288 units sold in
2008-2009.
4. Withdrawn from 13 cities
including metros
5. Repositioned to Alto 800
DECLINE STAGE ( 2003 – UPTO NOW)

0
50000
100000
150000
200000
250000
YEAR 2000 YEAR 2001 YEAR 2002 YEAR 2004
SALES
SALES
SALES

A response to increasing market
of Matiz
LPG & CNG variable
Face-lift to grille
Halogen headlamps
Stylish tail-lamps
PRODUCT VARIANTS

1. A response to Hyundai Santro
2. Outsold by Maruti 800 itself
initially
3. Forced roll back of Maruti-
800 EX to 4-speed gearbox
MARUTI SUZUKI ALTO

RS 1,93,000+TAX
PRICE

New technology/engine not to be infused to
meet BS IV norms
Sale stopped in 13 cities including the 4
metros
Selling continued in semi-urban and rural
areas
PHASE – OUT,APRIL 2010

1.2599 Offer” Consumers can
buy Maruti by paying EMIs of
2599 for 7 year
2.Dealers offered
exchange/loyalty bonus upto Rs.
10000/-
3.Cash discount upto Rs. 25000/-
offered
PROMOTION OF MARUTI ALTO

MARUTI TRUE VALUE

CONTACT
3/18/2022 Product Life Cycle - Competitive Marketing 45

Nokia Corporation is a Finland based
multinational company
Headquarter -- Espoo, Finland
CEO – Stephen Elop
Founder – Fredrik Idestam 1865
Nokia started as a pulp, rubber &
cable manufacturer
COMPANY PROFILE

1.Focused on handset manufacture only
2.Enhanced product portfolio
3.Large distribution channels
4.Adjust preferences for specific markets
5.Customer satisfaction
6.Focused on replacement
7.Increased commitment to emerging market
MARKETING STRATEGIES OF NOKIA

Time
Growth
Maturity
Decline
Introduction
Sales curve
The Concept Phones
Nokia E- series
Nokia Symbian
& N- Series
Nokia Windows &
Symbian phones
PRODUCT LIFE CYCLE OF NOKIA
50

Lifecycle …
• Globally Nokia’s market is at Decline due to shift from
Symbian to Windows phone devices
Globally & in
India Placed
Here
Rs.
Time
Product life cycle

INTRODUCTION STAGE ( 1995 – 2002)
NOKIA 2110

PRODUCT
1. Entered India in 1995
2. Launched very few models due to
lesser demand & innovation
3. Sold both GSM & CDMA phones
4. Launched 1st model Nokia 2110 with
Nokia tune
5. 2110 was 1st model capable of
sending/receiving sms
6.Competed with the then market
leader ‘Motorola’

General 2G Network GSM 900
Announced 1995
Status Discontinued
Weight 236g
Display Type Monochrome graphic
Loudspeaker No
3.5mm jack - No
Phonebook SIM card + 125 entries
Call records 10 dialed, 10 received, 10 missed calls
Data GPRS No
Bluetooth No
Features Messaging SMS
Radio No
Clock No
Alarm No
Games No
GPS No
Java No
Battery NiMH 550 mAh battery
Talk time 2 h 40 min
Nokia 2110
3/18/2022

1. Followed ‘Price
Skimming’ strategy
2. Launched Nokia 2110 at
Rs. 22000 (approx.)
3.Launched phones in the
range of Rs. 15000 to 25000
PRICE
a

1. Rarely followed any discounting
policy
2. Offered a good amount of
backend profit to retailers
3. Mobility factor of mobiles
attracted customers without any
promotional scheme
PROMOTION
a

• High-end models imported from China &
low-end models manufactured in
Chennai’s plant
• Manufactured/Imported mobiles stored
in Gurgaon’s mother warehouse
• HCL India is distributor for Nokia India
Pvt. Ltd. for North & East India
• For West & South India, Nokia has its
own distribution channel
• HCL India supplied these mobiles to state
level distributors like BSB Marketing,
A.G. comm. etc.
• Many places HCL India directly supplied
these phones to retailers
PLACE
a

China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-distributors
(BSB Marketing-
South Delhi)
Nokia Priority
Dealers/Organ
ised retail
Customers
PLACE

3/18/2022
Product Life Cycle - Competitive Marketing 62
GROWTH STAGE ( 2003 – 2009 )
a

Launched phones without
external antenna
Had better features like games,
alarm, ergonomic keypad,
display etc.
Models like Nokia 3310/3315
marked beginning of growth
stage
Launched models like N95 to
compete with Apple’s i-phone
PRODUCT
a

General 2G Network GSM 900 / 1800
Announced 2000
Display Type Monochrome graphic
Loudspeaker No
Phonebook SIM only
Call records 8 dialed, 8 received, 8 missed calls
Bluetooth No
Features Messaging SMS
Clock Yes
Alarm Yes
Games 4 ( Snake II, Pairs II, Space Impact, Bantumi )
GPS No
Java No
Colors User exchangeable front and back covers
- Predictive text input
- Calculator
- Voice Dial
- Profiles
- Currency converter
Battery NiMH 900 mAh battery
Talk time 2 h 30 min to 4 h 30
NOKIA 3310

Features :
Slider Phone
3G
Wi-Fi (WLAN)
Radio
MP3 Player
Video Record
Loudspeaker/Speakerphone
Bluetooth
Camera 5 Mega pixel
Video Record.
NOKIA N95 8GB
FEW POPULAR N-SERIES MODELS OF NOKIA

Features:
Bluetooth
Radio
Camera 3 Mega pixel
3G
Video Record
MP3 Player
Navi-key
NOKIA N73

Features:
Camera 5 Mega pixel
Video Record
Wi-Fi (WLAN)
Bluetooth
Radio.
Xenon flash
NOKIA N82

Features:
3.5 mm jack
Wi-Fi (WLAN)
MP3 Player
Radio
Bluetooth
4/8 Gb hard disk
Camera 2 Mega pixel.
NOKIA N91 4/8GB

PRICE
a
1. Followed ‘Price skimming’ strategy
in beginning of ‘growth stage’
2. Launch price of 3310 was approx.
Rs. 21000/-
3. As profits & popularity increased
prices were slashed to Rs. 5000/- in
2003 for popular models like 3310
4. Later-on in coming years, Nokia
adopted ‘Price penetration’
strategy

LIST OF PRICE POPULAR MODELS IN 2007
MODEL PRICE
Nokia N95 8GB Rs.33000
Nokia N82 Rs.22500
Nokia N78 Rs.20000
Nokia N81 8GB Rs.17500
Nokia N77 Rs.15000
Nokia N76 Rs.18500
Nokia N73 Music Edition Rs.16000
Nokia N73 Rs.15000

1. Post-paid connections were
given free with select Nokia
models
2. Person owning ‘pager’, who
purchased Nokia phones were
given discount on post-paid tariffs
3.Dealers & retailers got a large
amount of ‘backend profit’ to
increase the sales & drive growth
PROMOTION
a

China/Chennai
Gurgaon’s
mother
warehouse
HCL India
warehouse
Sub-distributors
(BSB Marketing-
South Delhi)
Nokia Priority
Dealers/Organ
ised retail
Customers
PLACE
a

31191 30016 29455 29267
34191
41121
51058 50710
40984
3362 4780 5011 4330 4639 5488
7985
4966
1197
2200 3381 3592 3207 3616 4306
7205
3988
891
0
10000
20000
30000
40000
50000
60000
2001 2002 2003 2004 2005 2006 2007 2008 2009
EURO
(million)
YEARS
NOKIA
Net Sales Operating Profit Net Profit Linear (Net Sales)
SALES FIGURE ( 2001 – 2009 )
a

GRAPHICAL REPRESENTATION
31191 30016 29455
29267
34191
41121
51058 50710
40984
3362 4780 5011 4330 4639 5488
7985
4966
1197
2200 3381 3592 3207 3616 4306
7205
3988
891
0
10000
20000
30000
40000
50000
60000
2001 2002 2003 2004 2005 2006 2007 2008 2009
EURO
(MILLION)
YEARS
NOKIA
Net Sales Operating Profit Net Profit

MATURITY STAGE ( 2009 – 2011 )
a

Launched a lot of touch screen
models
Launched 1st Maemo 5 OS
phone N-900
Launched Qwerty+touch
model N-97
Focussed on E-series phones to
compete with Blackberry
PRODUCT
a

General 2G Network GSM 850 / 900 / 1800 / 1900
3G Network HSDPA 850 / 900 / 1700 / 1900 / 2100
Status Available. Released 2010, October
Display Type AMOLED capacitive touchscreen, 16M colors
Multitouch Yes
Loudspeaker Yes
Memory Card slot microSD, up to 32 GB
Internal 16 GB storage, 256 MB RAM, 512 MB ROM
Speed HSDPA, 10.2 Mbps; HSUPA, 2.0 Mbps
WLAN Wi-Fi 802.11 b/g/n, UPnP technology
Bluetooth Yes, v3.0 with A2DP
USB Yes, microUSB v2.0, USB On-the-go
Camera Primary 12 MP, 4000x3000 pixels, Carl Zeiss optics, autofocus, Xenon flash,
Video Yes, 720p@25fps (720p@30fps via an update), check quality
Secondary VGA videocall camera
Features OS Symbian^3 OS, upgradable to Nokia Belle Refresh
CPU 680 MHz ARM 11
Colors Dark Grey, Silver White, Green, Blue, Orange, Pink, Bronze
- Anodized aluminium
Battery Non-removable Li-Ion 1200 mAh battery
NOKIA N8
3/18/2022

Followed ‘Price penetration’
strategy to sustain growing
competition
Launched models ranging from
Rs. 1000 to Rs. 30000
Frequently reduced prices of popular &
low end models to compete with
Micromax, Samsung, LG, etc.
PRICE

1.During 2007, 15,000 ton packaging material
has been saved by using smaller packaging
2. Nokia have reduced amount of printed
material inside the box
3. In 2007 Nokia began to increase level of
recycled content
Packaging is important because it protects products as they
make their way from factory to customers
 Attractive, Good & Secure packing
PACKAGING
a

PROMOTION
1. Offered combo discount on
purchase of Nokia bluetooth
stereo headset with N8.
2. Offered Sennheiser music
headset free with select models
3. During festive occasions Reebok
wrist watches, sunglasses, t-shirts
& sling bag were also given as gift
with select models
4. Scratch cards were given to
customers to make them avail
instant discount

q
DECLINE STAGE ( 2011 Q3 – PRESENT )

Upgraded its Symbian OS with ‘3’
& ‘Belle’
Shifted focus on Windows as
its main OS
Launched 1st Windows phone,
Lumia 800
Used Symbian only in low end
models
PRODUCT
a

a
General 2G Network GSM 850 / 900 / 1800 / 1900
3G Network HSDPA 850 / 900 / 1900 / 2100 - RM-819
HSDPA 900 / 1900 / 2100 - RM-801 CV
Announced a 2011, October
Status Available. Released 2011, November
Display Type AMOLED capacitive touchscreen, 16M colors
Size 480 x 800 pixels, 3.7 inches (~252 ppi pixel density
3.5mm jack Yes
Memory Card slot No
Internal 16 GB storage, 512 MB RAM
Data GPRS Class 33
EDGE Class 33
Speed HSDPA 14.4 Mbps, HSUPA 5.76 Mbps
WLAN Wi-Fi 802.11 b/g/n
Bluetooth Yes, v2.1 with A2DP, EDR
USB Yes, microUSB v2.0
Camera Primary 8 MP, 3264x2448 pixels, Carl Zeiss optics, autofocus, dual-LED flash
Secondary No
Features OS Microsoft Windows Phone 7.5 Mango, upgradable to v7.8
Chipset Qualcomm MSM8255 Snapdragon
CPU 1.4 GHz Scorpion
NOKIA LUMIA 800

a
PRICE
1. Price penetration strategy was
continued as company’s profits
declined due to cut-throat
competition from Samsung &
local players like Micromax
2. Had phones ranging from Rs.
1000 to Rs. 30000
3. Reduction in price also lead to
deterioration in quality

PROMOTION
1. Companies distributed freebies like wrist
watches & t-shirts with Lumia logo
engrossed
2. During festive occasions Reebok wrist
watches, sunglasses, t-shirts & sling bag
were also given as gift with select models
3. Top 3 performing stores from each zone
were selected for foreign trip organized by
Nokia free of cost
4. Retailers were encouraged to sell Lumia
phones by offering them more incentives
on sale

SALES FIGURE FROM 2009 TO 2012
40984
42446
38659
30176
1197 2070
-1073 -2303
891 1850
-1164
-3106
-10000
0
10000
20000
30000
40000
50000
2009 2010 2011 2012
EURO
(million)
YEARS
NOKIA
Net Sales Operating Profit/Loss Net Profit/Loss Linear (Net Sales)

NOKIA MOVING TOWARDS GROWTH IN Q4-’12
10400
9275
8980
10005
7354 7542
7239
8041
704
-487 -71
-954 -1340
-826 -576
439
-2000
0
2000
4000
6000
8000
10000
12000
2011 2011 2011 2011 2012 2012 2012 2012
Q1 – Q2 – Q3 – Q4 – Q1 – Q2 – Q3 – Q4 –
EURO
(million)
YEARS
NOKIA
Net sales Operating profit/loss Linear (Net sales)

CONTACT

Product life cycle

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