PRODUCT LIFE CYCLE

WITH CASE STUDIES

INTRODUCTION
A product is introduced among consumers, and if

consumers perceive it as meeting their needs and want, it

experiences a period of growth. Subsequently, it reaches
the stage of maturity and when it loses its appeal, its

decline starts and eventually is may be taken off the

market (demise). The classical product life cycle curves
are depicted as S shaped and generally divided in four

stages: Introduction, growth, maturity, and decline.

Common Product Life Curves

Sales

Profits

Loss
Introduction

Growth

Time

Maturity

(d) Classical Life Cycle Pattern

Decline

Introduction Stage
The introductory stage is viewed as fairly risky and quite expensive
because large amounts of money is spent on advertising and other
tools of marketing communications to create consumer awareness

in sufficiently large numbers, and encourage trial.

3D Televisions: 3D may have been around for a few decades, but
only after considerable investment from broadcasters and

technology companies are 3D TVs available for the home,

providing a good example of a product that is in the Introduction
Stage.

INTRODUCTION STAGE OF THE PLC

Sales

Low sales

Costs

High cost per customer

Profits

Product

Negative
Create product awareness
and trial
Offer a basic product

Price

Use cost-plus

Distribution

Build selective distribution

Build product awareness
among early adopters and
dealers

Marketing Objectives

Advertising

Growth Stage
The growth stage of life cycle is characterized by a sharp rise
in sales. Only a small percentage of new products introduced
survive to reach the growth stage.
Tablet PCs: There are a growing number of tablet PCs for
consumers to choose from, as this product passes through the
Growth stage of the cycle and more competitors start to come
into a market that really developed after the launch of Apples
iPad. Another example is NANO car.

Growth Stage of the

PLC
Sales

Rapidly rising sales

Costs

Average cost per customer

Profits

Rising profits

Marketing Objectives

Maximize market share

Offer product extensions,
service, warranty
Price to penetrate market

Product
Price
Distribution
Advertising

Build intensive distribution

Build awareness and interest
in the mass market

Maturity Stage
Most products after surviving competitive battles, winning

customer confidence and successful through growth phase enter

their maturity stage. The sales plateau, and this flattening of
sales usually lasts for some time because most products in the
category have reached their maturity stage, and there is stability
in terms of demand, technology, and competition.
Laptops: Laptop computers have been around for a number of

years, but more advanced components, as well as diverse

features that appeal to different segments of the market, will help
to sustain this product as it passes through the Maturity stage.

Maturity Stage of the PLC

Sales

Peak sales

Costs

Low cost per customer

Profits

Maximize
profit while
High profits
defending
market share

Marketing Objectives

Product
Price
Distribution
Advertising

Diversify brand and models

Price to match or best
competitors
Build more intensive
distribution
Stress brand differences and
benefits

Decline Stage
Decline stage sets in when customer preferences
change due to the availability of technologically superior
products and consumers shift in values, beliefs, and

tastes to products offering more value.

Decline Stage of the PLC

Declining sales

Sales
Costs
Profits
Marketing Objectives

Product
Price
Distribution
Advertising

Low cost per customer

Declining profits
Reduce expenditure and milk
the brand
Phase out weak items
Cut price
Go selective: phase out
unprofitable outlets
Reduce to level needed to
retain
hard-core loyal customers

Implications and Limitations of Product Life

Cycle Concept

Product life cycle concept shows a framework to spot the

occurrence of opportunities and threats in a product
market and the industry. This can help firms to reassess
their objectives, strategies, and different elements of
marketing programme.

INTRODUCTION- HUL

Hindustan Unilever Limited (HUL) is India's largest FMCG company,

touching the lives of two out of three Indians with over 20 distinct
categories in home & personal care products and food & beverages.

INTRODUCTION-LUX
1960
LUX went
colored

1916
LUX
launched in
USA as
Laundry soap

1925
LUX launched
in USA as
Toilet soap

1929
LUX
launched
in India

PRODUCT LIFE CYCLE

INTRODUCTION (1929- 1950S)

Company Objectives

Actions

Sales

Low

Cost of manufacturing
Profits
Marketing Objective

High
Negative
Create product awareness in
major cities
Offer a basic product
Higher than Lifebuoy
Created network in major
cities
Awareness among early
adopters.

Product strategy
Price strategy
Distribution
Advertising strategy

GROWTH- (1950S- 1990S)

Company Objectives

Actions

Sales

Rising Sales

Cost of manufacturing
Profits
Marketing Objective
Product strategy
Price strategy
Distribution

Average cost reduction

Positively increasing
Maximise market share
Offer variants
To penetrate the market
Intensive network in the
entire country
Awareness an interest in
mass market

Advertising strategy

MATURITY-(1990S TO TILL DATE )

Company Objectives

Actions

Sales

Peak sales

Cost of manufacturing

Low

Profits

High

Marketing Objective

Maximize profit while defending

market share

Product strategy

Diversify brand

Price strategy

To match the nearest competitor

Distribution

More intensive focusing on rural

area
Multiple brand ambassadors for
different variants.

Advertising strategy

CASE STUDY 2:
CADBURY

CADBURY-HISTORY
Cadbury

Chocolates was started in Birmingham

in 1824 by John Cadbury.
Cadbury Dairy Milk came up with the mix of milk
and chocolate tray which is pretty much how the
product still is.
No drastic change in the recipe of the product
but the packaging and the representation and
prominence of the glass and half of milk logo
has changed over a period of time.

 1904

- A new recipe is perfected by George

Cadbury for milk chocolate.
1905 - Cadbury launches Dairy Milk onto the
market
1913 - Dairy Milk becomes Cadbury's best
selling line.
1928 - Fruit & Nut is introduced as a variation of
Dairy Milk
1933 - WholeNut is added to the Dairy Milk
family.

 1948

- Cadbury Dairy Milk is sold in India

1998 - Dairy Milk is re-launched with the new
and modern pack design, but its recipe and
unique taste are still very similar to the original
recipe
2005 - Cadbury Dairy Milk celebrates its 100th
birthday

CONSUMER TRENDS
The

Mithaai or sweet has been the tradition in

India so far.
Chocolates are now trying to break into that
league.
Chocolates are more of an impulse buy.
Consumers are preferring chocolates to Mithaai
because of proper packaging, longer shelf life,
mid-range pricing and convenience.

CONTINUED....
Consumers have started showing interest in not just
milk chocolates but other varieties like Dark
Chocolate etc.
One of the major challenges that Cadbury Dairy
Milk faces is a decline in sales due to new variants
being introduced in the market by other brands
which could result in the product moving from
maturity to decline stage.
Another major challenge comes from a different
product category altogether which is the Indian
Sweets or Mithaai.

INTRODUCTION
In

the 1980s, CDM was positioned as the perfect

expression of love, captured in memorable copy.
During the early1990s, communicating that it was
the real taste of chocolate.
In 1994 came the path-breaking real taste of life
campaign.
Cadbury Dairy Milk redefined itself as the perfect
expression of spontaneous, shared good feelings,
providing the real taste of life experience.
The strategy paid off: Brand Cadbury grew by over
50% in sales volumes.

GROWTH
1998-

The next stage of growth for the brand

deals with popularizing consumption in a social
context, especially in more traditional settings
like weddings.
With the campaign Khaanein waallon ko
khaanein ka bahana chahiye
Cadbury Dairy Milk aimed to substantially
increase penetration levels with the award
winning Kuchh khaas hai.. .campaign.
The brand penetrated into smaller towns and
sales volumes grew by 40%

MATURITY
With

Bachchan they also launched their new

positioning of Kuch Meetha Ho Jaaye bringing in
the tradition of celebrating a joyous occasion in India
with sweets and now Cadbury Dairy Milk in particular.
The Pehli Tareekh Hai campaigns talked about the
importance of having Dairy Milk and celebrating on
getting your pay on pay-day.
Shubh Aarambh ads that have brought back the
old charm of Cadbury Dairy Milk with its very
interesting insight of mixing the traditional with the
new age

DECLINE / NEW PRODUCT INTRODUCTION

Many

marketing experts would agree that

the best time to reinvent for a brand is
when the going is still good.
No brand can afford to assume its created
the definitive product.
Cadbury Dairy Milk(CDM) introduce the sub
brand Silk.

THANK YOU