Product Life Cycle Stages Of PLC Graph of PLC Example of ASOS PLC conclusion

1. Presentation
on
“Product life cycle
of
garments on online market”
By: Ambiya Jagirdar

2. What is a product?
A product is the item offered for sale.
A product can be a service or an item. It
can be physical or in virtual or cyber form.
Every product is made at a cost and each
is sold at a price. The price that can be
charged depends on the market, the
quality, the marketing and the segment
that is targeted.

3. What is product life cycle?
The product life cycle shows
the stages a product goes
through over time in relation to
its sales.

5. Plc stages
• Product
development
• Introduction
• Growth
• Maturity
• Decline
• Begins when the
company
develops a new
product idea
• Sales are zero
• Investments cost
are high
• Profits are
negative

6. PLC -stages
• Product
development
• Introduction
• Growth
• Maturity
• Decline
• Slow sales growth
• Intensive
promotions,
communications
• Price uncertainity
• Uncertain
competition reaction
• Uncertain consumer
responses
• Non existent profit
• Negative cash

7. PLC -stages
• Product
development
• Introduction
• Growth
• Maturity
• Decline
• Rapid sales
growth
• Price
stabalization
• Market accepance
• Features
stabalization
• Profits start
coming in

8. PLC -stages
• Product
development
• Introduction
• Growth
• Maturity
• Decline
• Slow sales
growth
• Price reductions
• Features changes
• Profits go down
• Competitors
introduce new
product
• Brand

9. PLC -stages
• Product
development
• Introduction
• Growth
• Maturity
• Decline
• Decline in sales
• New product
meet
satisfaction
• Profits erode
• Communication
expenses are
stopped

10. PLC -Curve

11. Product life cycle
&
online fashion

12. In the fashion industry there
is a fairly short product life
cycle because trends and
tastes change regularly.
For example, the ASOS.com website
features a range of own-brand dresses
which are a 'must-have' fashion item.

13. About ASOS
• Established in June 2000
• ASOS is the largest UK’s independent
online fashion a beauty retailer offering
over 40000 branded and own label
product line
• 1.3 million active online customers
• 1000 new products to its range every
week
• Target audience is 16-34 years old-but
20% of current customers are aged over

14. 1. INTRODUCTION
**ORGANIZATION CONDITION
o HIGH COSTS
o INEFFICIENT PRODUCTION LEVELS
o CASH DEMANDS HIGH
----------------
**ENVIRONMENTAL
CONDITIONS
o FEW OR NO COMPETITIONS
o LIMITED PRODUCT AWARENESS OR
KNOWLEDGE
o LIMITED DEMAND
----------------
**MARKETING EFFORTS
o STIMULATE DEMAND
o ESTABLISH HIGH PRICE
o OFFER LIMITED PRODUCT VARIETY
o INCREASE DISTRIBUTION
2. GROWTH
**ORGANIZATION
CONDITIONS
o SMOOTHING PRODUCTION
o LOWERING COSTS
o OPERATION EFFICIENCES
o PRODUCT IMPROVEMENT WORK
-------------------
**ENVIRONMENTAL
CONDITION
o EXPANDING MARKETS
o EXPANDED DISTRIBUTION
o COMPETITION STRENGTHENS
o PRICES SOFTEN A BIT
--------------------
**MARKETING EFFORTS
o CULTIVATE SELECTIVE DEMAND
o PRODUCT IMPROVEMENT
o STRENGHTEN DISTRIBUTION
o PRICE FLEXIBILITY

15. 3. MATURITY
**ORGANIZATION CONDITION
A.EARLY MATURITY
o EFFICIENT SCALE OF OPERATION
o PRODUCTION MODIFICATION WORK
o LOW PROFIT
B.LATE MATURITY
o PRODUCT STANDARDIZATION
o DECREASING PROFITS
-----------------
**ENVIRONMENTAL CONDITIONS
A.EARLY MATURITY
o SLOWING GROWTH
o STRONG COMPETITION
o EXPANDED MARKET
o HEIGHTENED COMPETITION
B.LATE MATURITY
o FALTERING DEMAND
o FIERCE COMPETITION
o SHRINKING NUMBER OF COMPETITORS
o ESTABLISHED DISTRIBUTION PATTERN
----------------
**MARKETING EFFORTS
A.EARLY MATURITY
o EMPHASISE MARKET SEGMENTATION
o IMPROVE SERVICE AND WARRANTY
o REDUCE PRICES
B.LATE MATURITY
o ULTIMATE IN MARKET SEGMENTATION
o COMPETITIVE PRICING
o RETAIN DISTRIBUTION
4.DECLINE
**ORGANIZATION CONDITION
o PERMANENTLY DECLINING DEMAND
-------------------
**ENVIRONMENTAL CONDITION
o REDUCTION OF COMPETITORS
o LIMITED PRODUCT OFFERINGS
o PRICE STABILISATIONS
-------------------
**MARKETING EFFORTS
o INCREASE PRIMARY DEMAND
o PROFIT OPPORTUNITY PRICING
o PRUNE AND STRENGTHEN DISTRIBUTION

16. Conclusion
 PLC analysis-very important tool in the hands of
marketer.
 Better understanding in managing profitable products &
eliminating unprofitable one.
 As products moves from one stage to another in PLC –
Marketer evaluate and adjust strategies for promoting,
pricing & distribution of the product.
 Fashion is a rapidly moving market. ASOS.com
demonstrates the growing trend for online shopping with
increasing numbers of visitors and purchases on its
website year-on-year.ASOS.com meets the needs of its
target audience by providing an exciting and continually
updated website with regular new fashion items
 Being able to target customers through personalized
customer communications is a vital aspect of its