The Product Life Cycle

The Product Life CycleThe crossing support history passis an important concept in commercialiseing. It explains the stages a harvest-feast goes by means of with(predicate) from when it was first thought of until it finally is removed from the securities industry. All intersection purports does not pass off this final stage. some(prenominal) continue to deform and others rise and fall.So ,this is fundamentally an idea of growth life pass.Product life- bike management(orPLCM) is the succession of strategies apply by business management as a harvest-home goes through itslife cycle . The situation or condition in which product is exchange (advertising, saturation) keep changes all over time.AimThe aim of P.L.C. be to minimize time to market, improve product quality, minimize prototyping approachs, identify probable gross sales opportunities and revenue contri butions, and minimise worst impacts at end-of-life. To create undefeated new products the troupe must c omprehend its customers, markets and competitors.so the fol down in the mouth focus on these factors.DEFINITIONAll products have a particular life time, which is called the product life cycle. The life of time a product is on the market is passing dependent on its competition, technology and even the understanding of a companys marketing department. One of the stovepipe manners of extending a products life cycle is to regularly collect feedback from consumers, finding come forward what they regaining aim and want from a particular product.Genrally product life cycle has four stages which argon as followsIntroduction defendAfter a company develops a product and tests its feasible among consumers, the product is usually introduced to the market. This first part of a products public is called the introduction stage. A company is usually trying to build both advertising and brand awareness of the product in the introduction stage. So thats why the company cost remain relativel y eminent.. The first wane strategy would be to enter the market with a high scathe in hopes of regain initial production and advertising be..Growth StageThe growth stage is when product sales start to grow exponentially, oddly when the product is at high demand. At this stage, competition leave alone grow as other companies create competitive products. The market leader or first company in the industry to create the product leave behind usually maintain its starting charge as the sales are incrementing obviously price is acceptable to cuctomer.Saturation StageCompetition testament eventually start r to each oneing a saturation point over time. Companies will for a position in the market to compete with the tether company. At this point, it will be difficult for new competitors to enter into the market. Some may even go out of business. Market saturation will eventually force companies to lower prices. It is during this stage that consumer research is extremely important . A company will want todetermine what features, styles or flavors of the product in question consumers want so it rear differentiate its product from competitors. A company may also discover that the consumers want additional products. Hence, the companys best strategy is to extend its product line to include these additional products.Declining gross revenue StageEventually, product sales will start declining unless a company finds new uses or markets for its product. The slouch stage may be downfall occurence by new technology that replaces the outdated product. For example, the computer eventually replaced the typewriter. The company may also cut back on advertising during the decline stage. For example, black and white televisions are still in existence but are not promoted.sld00311.jpg (749-463)BEN SHARMANBen Sherman is a spherically recognised lifestyle brand. It has gravid from its business beginnings in quality shirts in Brighton in 1963 and is now sold in 35 countries around the world. It has expanded into the USA, Europe, and Australasia.In 2004, Ben Sherman was acquired by the Ameri butt end-based company, Oxford Industries. This collection is an international apparel design, sourcing and marketingBen Shermans name has always been closely colligate with the British music scene and with fashion. Its customers are young and at the brain of style.Throughout the years high profile customers include musicians, models, actors and bands, such(prenominal) as Blur, Oasis and the Kaiser Chiefs. The growth of the brand can be traced through changes in musical taste and this is a key part of Ben Shermans marketing strategy.Ben Sherman has highly-developed a parallelismd marketing mix. This is often referred to as the 4 Ps product, price, promotion and place. By getting the mix right, the company ensures that its products reach the market segments it is aiming the brand at. This approach helps the business remain competitive and extends its market con duct and influence.The marketing mix is like a cake recipe. Most cakes need the basic ingredients of eggs, flour, sugar and milk. However, a childs birthday cake will take away a different recipe to a wedding cake. The key is to intermix the ingredients to get the right cake for the right occasion. The marketing mix whole kit in exactly the same(p) way. The key ingredients of product, price, promotion and place are all necessary for the appropriate marketing of the product. Ben Sherman chooses the right combination of each subdivision to satisfy different customers needs.PRODUCTBen Sherman has to decide whether tocreate a product and then market it to target customers (product-orientated) orfind out what the market wants and then provide it (market-orientated)To achieve both, the company produces a widely product range that appeals to all its target market segments. The range includes insouciant clothes, formal wear, denim, footwear and lifestyle accessories, such as underwear , watches, bags, belts and fragrances..Product life cycleBen Sherman uses major fashion institutes to launch its collections to the press.The fashion year has two cycles the saltation/summer season and the autumn/winter one. The fashion industry is highly competitive and fast-moving. Fashion products tend to have a short life cycle.This means the time between the launch of a product and the point at which that product is mature is very quick. Competition amongst fashion retailers forces businesses to freshen up their ranges a number of times in a year. This topping up modifies the product as it reaches the maturity stage. The boost of a new product or style then extends the life of the range. Products need refreshing to negate the dip in sales during the Saturation stage of the life cycle which could result in an early decline. The additions and changes help sales rise again, earning bare(a) sales revenue and profit, as well as maintaining the Ben Sherman brand in the market.P RICEBen Sherman has to assess which markets its products are aimed at and set a price to match.There are a number of set strategies that a business can use for its products includingcost based pricing where the selling price is set to cover the cost of manufacture.market orientated pricing.Market orientated pricing covers several different approachesmarket penetration, where a new product is priced low to attract a high volume of salesmarket graze where a new product has premium pricing to give high revenues whilst the product is unique in the marketpremium pricing, where there is a uniqueness and exclusiveness about the product so that it can need a high priceeconomy pricing, which tends to be for no-frills, basic products where the cost of manufacture and marketing are kept to a minimumThe price of a product relates to its perceived value. Lower priced items will expect a higher(prenominal) volume of sales, whilst fewer sales of luxury products may achieve the same revenue th rough higher pricing.Low price brands often written matter the market leaders and may be generic own brands, such as those produced by supermarket chains. The main purpose of price here is to channelize value for- money and such brands do not expect customers to show loyalty.Ben Sherman produces mostly medium-price range products. Its position in the market for clothing is shown on the product map diagram. The mix of product and price is clearly lucid here. These brands are identifiable by their quality and style.PLACEThis refers both to the places where Ben Sherman products may be bought and to the channels of distribution used to deliver the products to these places. Place is not always a physical building such as a retail outlet or shop, but includes any means by which the product is made available to the customer.A business has to balance getting decent of its products to its target customers against the problems or cost of distributing them.PROMOTIONThe purpose of promotion is to gravel and retain customers. It coversabove-the-line, which is using independent media to reach a wide audition easily, but over which the company may have limited control, for example, cartridge holder advertising. This reaches a mass audience but can be profound to measure its impact.below-the-line, which uses media over which the business has control, for example, direct mailing. This type of promotion can be more cost-effective and give more measurable rejoinder rates.CONCLUSIONBen Sherman is a brand that appeals to the youth market. Its responsiveness to changing tastes in fashion and music throughout the last fifty years has provided it with a unique heritage of quality, personality and style. This has made Ben Sherman into a great British icon, reflecting British culture as it does business across the world.Whilst each element of the marketing mix is important in its own right, the right balance of the four elements is critical.MAGGIDifferent phases product life c ycle of maggiWhyattanoodlewasafailure?Strategies taken to establish new productcategoryWhat measures NIL should take to scram theimage of a popular brand image.Stage at which maggiis in the product lifecycle.PRODUCT LIFE CYCLEA concept that provides a way to trace thestages of a products acceptance, from itsintroduction (birth) to itsdecline (death)INTRODUCTORY portrayHigh failure ratesNo competitionFrequent product modificationLimited distributionHigh marketing and production costsPromotion focuses on awareness andinformationNestl India Ltd. (NIL), theIndian subsidiary of the global FMCG major,Nestl SA, introduced the Maggibrand in India in 1982, with its launch ofMaggi2 MinuteNoodles, an instantnoodles product offset STAGEIncreasing rateof salesEntrance of competitorsInitial sound profitsPromotion emphasizes brand adsPrices normally fallDevelopment costs are recovered10 yrs back itenjoyed around 50% market share in thissegment which was valued ataround 250 crores..MATURITY STAGE Declining sales growthSaturated marketsExtending product lineStylistic product changes monstrous promotions to dealers and consumersPrices and profits fallIn2003HindustanLeverLtdwas allsetto take onNestlesbestsellingMaggi2-minute noodles by launching a new category of lucidsnacks under it foodbrand, KnorrAnnapurnaDECLINE STAGELong-run drop in salesLarge inventories ofunsold itemsElimination of all non essentialmarketing expenses