The life cycle process starts right from the launch, reaching all the way up to the waning stage. In this, the product grows, matures, survives and declines eventually. However, at every stage it gives the marketer new challenges, threats and opportunities to cash on. These stages put together in a chronology gives us a Product Life Cycle-PLC, as shown below:
Introduction stage:
Ever since the launch of Ambi Pur car freshener in India, this nascent category product had an untrespassed market. In such a case, informing the consumers becomes crucial. Thus, the introduction of the product in the market lays the foundation of the further PLC stages.
Ambi Pur's primary essential: Generating Awareness. Followed attracting the category buyers. Therefore, huge promotions were undertaken. Although, this being a category product, the promotions remained high incurring huge expenses- justifiable in this stage. Thus, the challenge was in introducing, promoting and persuading with the diffuser car freshener. It inculcated a high risk of dealing with high prices, low sales and negative to low profits until the next stage.
Growth stage:
This is where the product climbs the ladder of 'growth'. Acceptance of the product, increasing sales by the early buyers and rising profits mark the growth stage. The introduction stage with its critical promotion provides for this. Thus the costs averages as the profits starts to show in. Noteworthy feature of this stage is that as it rises upwards, the Competitors starts to surface.
Ambi Pur introduces the new fragrances and diffuser systems. Technological advancements and innovative designs helps in the product longevity in the next stage. It adds on value and a feature to their tag. Thus in such a scenario, Ambi Pur competes with its early growing competitors by rendering various quality products, building consumers' trust and thus maintaining their loyalty.
Maturity stage:
A product is fully matured when it shows the signs of optimum sales, profits and maximum customers irrespective of the competitors. This stage sees the maximum competition which further declines. Ambi Pur, despite many potential competitors and substitutes like Godrej Aer and several car fresheners, it retains the audiences. Thus, we see that defending the market share in terms of profits and people is of utmost importance in this stage. Cost here is again low due to the competitive environment. Stabilized sales and profits brings about a plateauing in this stage. However, its contour and period remains unpredictable and depends on various marketing strategies and their outcomes.
Decline stage:
This is an inevitable stage however can be tactfully avoided or delayed. The sales see a downfall. profits follow suit. The product is pushed on the verge of loosing the race. Either the competitor takes over or the product which was once a market leader turns into a market follower. Clearly, the customers taste for the product has changed. Yet, for sustainability issues, we see the cost remaining low. The products and channels which do not perform well are cut off. Expenses are efficient and minimal- only on the products assuring a return. One way to get out of this phase is by revamping the product. Bringing in innovation and re-introducing it with a positive change.
Conclusion:
It can be inferred that the PLC stages are interdependent. Their period is undefined. It largely depends on the different marketing strategies, pricing being one of them. These strategies need to be updated or changed from time to time, stage to stage. It is interesting to note that there exists different patterns of PLC for different category of products. Eg: Growth-slumpy-maturity patter for Kitchenware. Cycle-recycle for pharma drugs and Scalloped pattern for Nylon/plastic.
Introduction stage:
Ever since the launch of Ambi Pur car freshener in India, this nascent category product had an untrespassed market. In such a case, informing the consumers becomes crucial. Thus, the introduction of the product in the market lays the foundation of the further PLC stages.
Ambi Pur's primary essential: Generating Awareness. Followed attracting the category buyers. Therefore, huge promotions were undertaken. Although, this being a category product, the promotions remained high incurring huge expenses- justifiable in this stage. Thus, the challenge was in introducing, promoting and persuading with the diffuser car freshener. It inculcated a high risk of dealing with high prices, low sales and negative to low profits until the next stage.
Growth stage:
This is where the product climbs the ladder of 'growth'. Acceptance of the product, increasing sales by the early buyers and rising profits mark the growth stage. The introduction stage with its critical promotion provides for this. Thus the costs averages as the profits starts to show in. Noteworthy feature of this stage is that as it rises upwards, the Competitors starts to surface.
Ambi Pur introduces the new fragrances and diffuser systems. Technological advancements and innovative designs helps in the product longevity in the next stage. It adds on value and a feature to their tag. Thus in such a scenario, Ambi Pur competes with its early growing competitors by rendering various quality products, building consumers' trust and thus maintaining their loyalty.
Maturity stage:
A product is fully matured when it shows the signs of optimum sales, profits and maximum customers irrespective of the competitors. This stage sees the maximum competition which further declines. Ambi Pur, despite many potential competitors and substitutes like Godrej Aer and several car fresheners, it retains the audiences. Thus, we see that defending the market share in terms of profits and people is of utmost importance in this stage. Cost here is again low due to the competitive environment. Stabilized sales and profits brings about a plateauing in this stage. However, its contour and period remains unpredictable and depends on various marketing strategies and their outcomes.
Decline stage:
This is an inevitable stage however can be tactfully avoided or delayed. The sales see a downfall. profits follow suit. The product is pushed on the verge of loosing the race. Either the competitor takes over or the product which was once a market leader turns into a market follower. Clearly, the customers taste for the product has changed. Yet, for sustainability issues, we see the cost remaining low. The products and channels which do not perform well are cut off. Expenses are efficient and minimal- only on the products assuring a return. One way to get out of this phase is by revamping the product. Bringing in innovation and re-introducing it with a positive change.
Conclusion:
It can be inferred that the PLC stages are interdependent. Their period is undefined. It largely depends on the different marketing strategies, pricing being one of them. These strategies need to be updated or changed from time to time, stage to stage. It is interesting to note that there exists different patterns of PLC for different category of products. Eg: Growth-slumpy-maturity patter for Kitchenware. Cycle-recycle for pharma drugs and Scalloped pattern for Nylon/plastic.
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