The product life cycle should be preferably termed as product market life cycle as it is related to a given particular market. The cost of advertisement free-samples, offers, trials, dealers and retailers promotion, establishment activities add to the cost. It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. Marginal reduction in price to attract non-users, to maintain users. Both modes of cola have been in maturity for some years. PLC is represented in terms of funds flow. The two revivals are the best examples of successful management of the PLC of a brand. All products eventually will be put to rest and sent to their burial grounds. a. d. Are advertising and promotional elasticities declining and price elasticity increasing? The more I work with companies selling products in various points along the Product Life Cycle, the more I believe that your product's life-cycle stage profoundly affects how you market that product. a. In this stage, there's heavy marketing activity, product promotion and the product is put into limited outlets in a few channels for … Promotional activities are boosted further to maintain the same tempo of marketing. Growth is uncertain in products as infant mortality rate amongst the products is very high. ‘Horlicks’, ‘Lux’, ‘Bournvita’, ‘RIN’, ‘SURF’, ‘LIFEBOUY’ etc. During each stage of the PLC, different types of promotions need to be planned. Thus, a marketer should adopt the following strategies before introducing a product in the market: (i) A basic product or service should be offered. Not all the products mature. So, in order to save itself from the stage of saturation and decline, the firm makes a fresh innovation just at a time when the existing product is about to enter the saturation stage. The duration of PLC stages is unpredictable because it is governed by factors which are outside the purview and control of any single company. (iv) By introducing “Maggi Chotu”, an Rs.6 pack for single use for children etc. Is significant technical progress taking place which threatens existing products? 3. b. The effect of positive impression would last forever. This is a fact of existence of a product. Coca Cola and Pepsi are examples of two prod­ucts that have existed for many decades, but are still popular products all over the world. PLC assists in the postponement of the desirable life phase of a product, e.g., maturity stage. Even after launch it takes some time for positive funds flows to counteract the heavy initial promotional and other launch outlays. (ii) The firm can prepare an effective product plan by knowing the product life-cycle of a product. Price-reduction wars make the firm position worst one. As a consequence, the reduction in costs due to the learning curve is much lower than that due to the broader based experience curve. On the negative side, critics point out the difficulty in making predictions re­garding the life cycle patterns for different products with a certain amount of accuracy and certainty. The four life cycle stages are: Introduction, Growth, Maturity and Decline. Sometimes a fad, after losing its peak may follow a standard life cycle. The high learning of customers is achieved through high volume of promotions (the product information/message is repetitively bombarded on the customers) to improve the purchase efficiency of the customers for the product. If estimates can be made of competitors’ experience curve effects, this should reveal which are the low-cost competitors and which are not and hence which are at risk and from whom. Here the marketer prefers to obsolete the weaker products and concentrate more on profitable or newer products. The third of the product life cycle stages can be quite a challenging time for manufacturers. More distribution channels are added to the network as more and more customers are to be reached. These stages help marketers understand and manage the product acceptance and market share in the market. (d) There is no irregularity across products in the length of the stages in the PLC. According to the concept, the life of a product is always limited. It is possible to foresee and predict the profile of the proposed product’s life, the events that are likely to take place in the market, and the issues on pricing channel and promotion that are likely to come up. Without making big investments on research and development, a company can never hope to survive and flourish in a competitive arena. Just as children go through different phases in life (toddler, elementary school, adolescent, young adult, and so on), products and services also age and go … Description: These stages are: Introduction: When the product is brought into the market. Definition of Product Life Cycle 2. 2. a. The time-frame after the last production date depends on the product and relates to the expected product lifetime from a customer's point of view. iv. (i) Introducing the concept of “Meri Maggi” by focusing on emotional attachment people have with Maggi. It is because the customers who have accepted the new products today can accept another product tomorrow and the existing products will soon stand out of the market. Systematized preparation and quick introduction. 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