1. PRESENTATION
PRESENTED BY: GANESH K. KANTHALI
M.B.A.(MARKETING)
PRESENTAION TOPIC:PRODUCT STRATEGY
OVER THE LIFE-CYCLE
8/3/20131

2. PRODUCT LIFE CYCLE
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Just like human beings, Products too have their childhood,
adolescence, youth & old age.
The life cycle stages when applied to products, is termed as
Product Life Cycle(PLC).
From its birth, a product passes through various stages, until it is finally abandoned
or withdrawn from market.
PLC having a four stages:
1. Introduction
2. Growth
3. Maturity
4. Decline

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Sales & Profit
Losses/
Investment
Product
development
Introductio
n
Growth Maturity Decline
Time
Sale
s
Profit
Fig. 1.: Product Life Cycle(PLC)
Source: Marketing Management (Philip Kotler

4. Strategies for the different stages of the PLC
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I. Introduction Stage:
A. Characteristics:
1. Sales: Low
2. Cost : High cost per unit
3. Profit: Negative
4. Customer: Innovators
5. Competitors: Few
B. Marketing Objective:
1. Create Product Awareness and Trial
Strategies: High
High low
low
Slow
Skimming
Rapid
Skimming
Rapid
Penetration
Slow
Penetration
Promotion
Price
1. Rapid Skimming:
High Price, High Promotion
1. Slow Skimming :
High Price, Low Promotion
1. Rapid Penetration:
Low Price, High Promotion
1. Slow Penetration:
Low Price, Low Promotion
Fig.2.:Mkt. Strategies in Introduction S

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II. Growth Stage
A. Characteristics :
1. Sale-Rapidly rising.
2. Cost-Average cost per customer
3. Profit-Rising
4. Customers-Early adapters
5. Competitors growing number
B. Marketing Objectives:
1. Maximize market share
Strategies:
1. Improvement of product quality with new features & style.
2. Enter in new market segment.
3. Enhancing brand image, brand loyalty & bran equity through
brand promotion.
4. Reduce the prices to attract the customers.
5. Increasing distribution coverage & entering new distribution
channels.
6. Shift from product awareness advertising to product-
preference advertising.

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III. Maturity Stage
A. Characteristics:
1. Sales-Peak sales
2. Costs-Low cost per customer
3. Profit-High profit
4. Customers-Middle majority
5. Competitors-Stable /begins to decline
B. Marketing objective:
1. Maximize profit while defending
market share
Strategies:
Product
Modification
Market
Modification
Marketing Mix
Modification
•Quality improvement
•Feature improvement
•Style improvement
•New users
•More frequent use
•More usage per occasion
•New & more varied uses
•Advertising
•Sale Promotion
•Personal Selling
•Price
•Distribution
•Services

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IV. Decline stage
A. Characteristics:
1. Sales: Declining sales
2. Cost: Low cost per customer
3. Profit : Declining profit
4. Customers : Laggard
5. Competitors : Declining number
B. Marketing Objective:
1. Reduce expenditure & milk the brand.
Strategies:
Product: Phase out weak areas, Abandon product.
Price: Cut price
Distribution: Go selective; phase out unprofitable outlets
Advertising : Reduce to level needed to retain hard-core loyal.
Sales Promotion : Reduce to minimal level
Data Source: Philip Kotler & Gary Armstrong (marketing Management)

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...Thank You…
Have a nice
day.…...