1

Group Members are:

Abdul Mulla
Roll no. 36
Azad pandey
Roll no. 40
Richa patel
Roll no. 41
Rohit pathanwal Roll no.42

PRODUCT LIFE CYCLE (PLC)

Like human beings, products also have an
arc. From birth to death, human beings pass
through various stages e.g. birth, growth,
maturity, decline and death.
A similar life-cycle is seen in the case of
products. The product life cycle goes through
multiple phases, involves many professional
disciplines, and requires many skills, tools
and processes.

STAGES OF PLC

INTRODUCTION STAGE:Company builds product awareness and develop market for

the product and launches the product into the market.
GROWTH STAGE:Company build brand preference and increase market share.
MATURITY STAGE:Competitors starts. Products come up with new features and
face new competitions.
DECLINE STAGE:Sales decline. Firms either reduce cost to continue or quit from
the market.

(MARUTI 800)

MARUTI SUZUKI
MARUTI UDYOG LIMITED was established in 1981
Largest automobile company in India located at Gurgaon,
Manesar.
Portfolio of 13 brands and 150 variants like, MARUTI 800,
ALTO, WAGANOR, SWIFT, GRAND VITARA, SX4 AND SWIFT
DZIRE etc.,
A license and Joint Venture Agreement was signed between
Government of India and Suzuki Motor Company (now Suzuki
Motor Corporation of Japan) in October 1982.
Listed in BSE & NSE.
Honored with METI award from Govt. of Japan for
promotion of Japanese brand in India.
6

MARUTI 800

1987-96
1997-02
1983-86

2002 UPTO
NOW

INTRODUCTION STAGE
(1983-1986)

MARUTI UDYOG LIMITED Launched first MARUTI

800, in Indian market on December 1983.
Its a collaboration between INDIAN STATE
owned MARUTI and SUZUKI MOTOR JAPAN.
Cheapest car in the Indian market.
Also exported to countries like South Asia
and South American market.
First car was presented to Lord Venkateswara of
Tirumala Venkateswara temple.
First car was sold to Harpal Singh for Rs.48,000/- as a
lucky owner and received keys from Prime Minister of
India INDIRA GANDHI.

GROWTH STAGE
(1987-1996)

MARUTI 800 comes up with new features like , AC

version and Music System in the car.
Sales increased by 852 units to 20,269 units and
reached up to 31,314 units
First export began in 1987.
Sales soared from about 63,763 units to
about 1,89,061 units in 1996.

Strategies adopted:

Customer care has became a key element for Maruti,

Increased Maruti service stations every 25 kms on a highway,
For increasing its market share it launched new car models.

MATURITY STAGE
(1997-2002)

In 1997,MARUTI introduced a new car with Jelly Bean

shape . However it was not so successful in the market.
Launched revamped version of MARUTI 800 EX, with new
engine, shock absorber, coil spring suspension, but this model
lost their sales gradually .
Entry of competitors like General Motors, Ford, Tata.
In 2002, MARUTI launched ALTO,with bigger stylish
version of the Maruti 800.
Introduced LPG & CNG variables, called Maruti 800 Duo
with new face lifts like newer grille and clear lens head lamps

CONT

Strategies adopted at this stage :

Pricing strategy: categorizing to all segments ,car priced at Rs.
1,87,000/- is the lowest offer on the road
Developed different revenue streams in the form of Maruti
insurance, Maruti finance.
Repositioning of Maruti products
Introduced new facelifts model based on market responses or
consumer feedbacks or the competitors moves
Customer centric approach:
call centers bring Maruti to closer to its customer.
Committed to motorizing India
Partnership with STATE BANK OF INDIA
organized finance to
small towns enable
people to buy cars
in Rs.2599/- scheme

DECLINING STAGE
(2002 UPTO NOW)

Due to heavy competition from competitors like Hyundai i10 and Chevrolet Spark,
sales of Maruti 800 was drastically decreased.
The sales went down from 1,51,976 units in the year 2000 to about 69,553 in 2007.
Buyers were attracted to cheap small cars like NANO.

In 2008-2009 experienced a drastic reduction in

sales.

Major competitor Tata Motors launched Tata Nano, which was smaller and yet
offered more space than the Maruti 800
Sales are continued in semi urban and rural areas till today .
Now in 2012 Maruti introduces ALTO 800 in the place of Maruti 800 .

What Is BCG Matrix?

BOSTON CONSULTING GROUP (BCG)

MATRIX is developed by BRUCE
HENDERSON of the BOSTON
CONSULTING GROUP IN THE EARLY
1970s.

According to this technique, businesses

or products are classified as low or high
performers depending upon their market
growth rate and relative market share.
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16

THE BCG GROWTHSHARE

It is a portfolio planning model which is based
MATRIX
on the observation that a companys business

units can be classified in to four categories:

Stars
Question marks
Cash cows
Dogs

It is based on the combination of market growth

and market share relative to the next best
competitor.

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STARS
High growth, High market share

Stars are leaders in business.

They also require heavy investment, to
maintain its large market share.
It leads to large amount of cash
consumption and cash generation.
Attempts should be made to hold the
market share otherwise the star will
become a CASH COW.
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CASH COWS
Low growth , High market share

They are foundation of the company and

often the stars of yesterday.
They generate more cash than required.
They extract the profits by investing as
little cash as possible
They are located in an industry that is
mature, not growing or declining.

DOGS
Low growth, Low market share

Dogs are the cash traps.

Dogs do not have potential to bring in much

cash.

Number of dogs in the company should be

minimized.

Business is situated at a declining stage.

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QUESTION MARKS
High growth , Low market share

Most businesses start of as question marks.

They will absorb great amounts of cash if the
market share remains unchanged, (low).
Why question marks?
Question marks have potential to become star
and eventually cash cow but can also become
a dog.
Investments should be high for question
marks.
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BCG MATRIX with PRODUCT LIFE

CYCLE
MARUTI 800

(1987-1996)

GROWTH

(1983-1986)

INTRODUCTION

(2002 UPTO NOW)

(1997-2002)

MATURITY

DECLINE

ANALYSIS

REPOSITIONING THE
PRODUCT

After a drastically decline in the sales of Maruti 800 ,

MUL had repositioned its product Maruti 800 with ALTO
800.

Alto 800 was introduced into the market on October

16,2012.

ALTO 800 is designed with latest features of more

space, speed acceleration, power steering etc.,

Now ALTO 800 is available in Indian market for the price

of 2.5 lakhs(approx).

CONCLUSION

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