Product Life-Cycle

 Product life cycle asserts that:

 Products have a limited life
 Sales of the product pass through different
stages
 Profits rise and fall at different stages of PLC
 Products require different strategies at each
stage of their life cycle

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 Product Life-Cycle-Sales & Profit:
I
G M D
N
R A E
Sales T
O T C
And R
W U L
Profit O
T R I Sales
D
H I N
U
T E
C
Y
T
I
O
N
Profit
Time

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 Examples of Product Life-Cycle:
Introduction Growth Maturity Decline

Product Video ipods DVDs VCDs Video

Category Cassettes

Product Angular Gel Pens Ball Point Ink Pens

Form Pens Pens

Brands Actros, MAN Volvo FM Tata 407, DCM

& FH Ashok Toyota,
Leyland Matador
Tata ACE
Ecomet 912

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Various Product Life Cycle Patterns

Example:
a) b) c)

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 Marketing Strategies:
Introduction Stage
High Promotion Level Low Promotion Level

High Rapid Slow Skimming

Price Skimming

Low Rapid Slow Penetration

Price Penetra-
tion
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 Marketing Strategies:
Growth Stage
 Growth stage for Mahindra & Mahindra’s Scorpio –
Sales in FY 2007-08 up by 9% to 30,000+
 What is being done to the product?
 Quality Improvement, Addition of new features, Improved
Styling: Scorpio V series launched on 30th Nov. 2007, later
mHawk launched
 Add New Models: Scorpio Getaway, V series, mHawk
 Enter new market Segments: Russia, South Africa, US
 Increase Distribution Coverage: 275 dealers at present
 Prices are lowered: V-Series price 9.65 (Ex-Delhi), prices are
stable
 Shift from product awareness to product preference ads.
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