Product Life Cycle: DR Bejoy Thomas

PRODUCT LIFE CYCLE
Dr Bejoy Thomas
Product Life Cycle (PLC)
• PLC represents sequence of stages through which a product or product

category passes through over a period of time from the moment when it is
introduced in the market for the first time to a stage of a decline when it is
withdrawn from the market.
•
Lifecycle in rural longer than urban
• Conventionally, there are four stages of PLC:

• - Introduction
- Growth
- Maturity
- Decline
Duration of PLC
Duration of PLC is determined by following factors:
• Market conditions
• Growth of particular market segment
• Trends in buyer spending capacity
• Technological developments in the industry
• Company policy of planned product obsolescence.

Characteristics of Different Stages of PLC
and Marketing Mix Strategies
• Introduction Stage:
• Growth is slow.
• Sales volume is also low.
• Product awareness is limited.
• High marketing cost: launch and setting distribution network
• Profits are unlikely at this stage.
• Focus: The focus at this stage is to:
• Build awareness about benefits of product category
• Mobile telephony or Computers
• Establish distribution network
Marketing Strategies for Introductory Stage
in the Rural Market
•Product Strategies:
• Smaller Packages, if it is possible
•Place Strategies:
• Creation of Distribution Networks
•Promotion Strategies:
•Edutainment – Demonstrations & not mass media
• Reaching the Opinion-leaders
• Targeting the Innovators or Early Adopters
• Category Growth – Brand name of first movers can become generic
•Pricing Strategy:
•Introductory Pricing
• Penetration Pricing Strategy
Characteristics of Growth Stage
• Rapid growth in sales and profits

• Economies of scales for the production
• Even lower prices are possible on account of lower cost of production, which
lead to additional growth
• Seeing the growth in a product category the competitors move in the market
Focus:
• To build brand preference
• TV, refrigerator etc
• LG Sampoorna TV
• To increase market share
Marketing Strategies for Growth Stage
•
Product Strategies:
• Brand Reinforcement – existing users use or start recommending
• Modification or Value addition in the Product Design
•Making Product more Relevant for the Customers
• Launching Medium Size Packaging
•
Pricing Strategies:
• Lowering the Price
Marketing Strategies for Growth Stage
• Place Strategies:
• Strengthening Relationship with Distributor
• Deepening the Penetration
• Promotion Strategies:
• Increase in Promotional Budget
• Highlighting Quality or Performance of the Product
• Targeting the Early Majority

Characteristic of Maturity Stage
• a) Intense competition
• b) Similarity or standardization of products and services
• c) Weaker or non-serious players gradually start withdrawing.
• d) This is the dream stage for sales and marketing professionals, as
maximum sales and maximum profits comes at this stage and most
of the brands tend to stay in this stage for a longer time than in
other stages.
• Focus:
• Defending the market share
• Maximising the profit
• Tractors & chemical fertilisers
• HUL, Everready and ITC
Marketing Strategies for Maturity Stage
• Elongate the Maturity Stage
• Product Strategies:
• i. Revitalise the Product – Heinz different colours to ketchup
• ii. Product Differentiation: To Avoid Brand Commoditisation
• iii. R&D to Enhance features
• Promotion Strategies
• i. Modification in Promotion-mix- product appear novel and contemporary
• ii. Brand Repositioning
• iii. Promote Product Differentiation
• iv. Target Late Majority and Laggards
Marketing Strategies for Maturity Stage
• Place Strategies:
• i. Deepen the Distribution Network:
• ii. Incentives to channel partners
• Price Strategy:
• i. Lowering Prices
Characteristics of Decline Stage:
• Sales starts dropping
• Demand diminishes
• Market for product category shrinks
• Inventories start piling up
• Overall profits start declining for entire industry.
• Decline due to technological advancements

• VCR to VCD/DVD
• Analogue cameras to digital cameras
Marketing Strategies for Decline Stage
• Rejuvenate the Product

• Harvest the Product
• Offering the Product to Loyal Niche Segments
• Find New Applications for the Product
• Link the Product with other Products
• Brand Harvesting
• Maximum Efficiency in Marketing and Production
• Liquidate the Product
Application of Product Life Cycle in Rural Markets:
A Critical Analysis
• Rural India is not single homogeneous market, which will be in

same PLC stage for a product category through. Rural market
for purpose of application of PLC is of three types: Developed,
Developing and Under-developed rural. Each of them may be at
very different stage of evolution for the same product category.
• Haryana mature market for Tractor than Bihar
• Segmentation of rural market is pre-condition for application of
PLC.
Application of Product Life Cycle in Rural
Markets: A Critical Analysis
PLC concept is related with product category. A brand can die

when product category was just in introduction stage.
• HUL - Aim toothpaste ; Ruf-n-Tuf ready-to-stitch denims
• Death of a brand does not necessarily mean the decline stage

of PLC. Organisations need to make a realistic assessment
whether the decline of sale of product is due to internal or
competitive forces or it is really that the product category as
such has entered the decline stage.

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PRODUCT LIFE CYCLE

• PLC represents sequence of stages through which a product or product

• Conventionally, there are four stages of PLC:

• Growth of particular market segment

• Trends in buyer spending capacity

• Technological developments in the industry

• Company policy of planned product obsolescence.

• Rapid growth in sales and profits

• Strengthening Relationship with Distributor

• Deepening the Penetration

• Increase in Promotional Budget

• Highlighting Quality or Performance of the Product

• Targeting the Early Majority

• i. Deepen the Distribution Network:

• ii. Incentives to channel partners

• Decline due to technological advancements

• Rejuvenate the Product

• Rural India is not single homogeneous market, which will be in

PLC concept is related with product category. A brand can die

• Death of a brand does not necessarily mean the decline stage

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