Product Line strategies & PLC

1. PRODUCT LINE & PRODUCT
LIFE CYCLE
SUBMITTED BY: APARNA ROY SUBMITTED TO: PROF. NAMRATA
MIRCHANDANI
CLASS: MBA SECTION A SUBJECT: MARKETING
MANAGEMENT
ROLL NO.: 15 SEMESTER: MBA SEM
2

2. WHAT IS A PRODUCT LINE?
A product line is that combination of products which;
 Belongs to a single manufacturer
 Shares similar Attributes
 Serves the common general purpose but targets
different market segments

3. PRODUCT LINE STARTEGIES
 Expansion of Product Line
 Contraction of the Product Line
 Alteration of the Existing Products
 Developing New uses for the Existing products
 Trading Up
 Trading Down

4. Expansion of Product Line
Process of adding more products to the line. Valid only
if;
 There is a well established brand arena & customers
are accustomed to switch.
 Competitor lacks a comparable product
 Competitor have already expanded to the proposed
area.

5. Contraction of the Product Line
Dropping a product from the line. The reasons
behind a drop may be;
 Fine tuning the market performance
 Eliminating a poor performing product
 Uplifting a product with more potential

6. Alteration in the Existing Product
An alteration may be in;
 Design
 Size
 Colour
 Texture
 Flavour
 Packaging
 Advertising appeal

7. Developing new use for the existing
products
This is intended to attract a new
category of customers to the
manufacturer without forming a new
product.
Investments in R&D and Advertisement
is required.

8. Trading Up
 Adding a high priced prestigious
product to the line so as to increase
the sales of the existing low priced
product.

9. Trading Down
 Introducing a low priced product to
the prestigious line so as to cater
increased demand.

10. PRODUCT LIFE CYCLE
 Product Life Cycle is the stages that a product goes
through during its life. There are 4 stages of PLC :
 Introduction, Growth, Maturity, and Decline.
 Its duration maybe as short as a few months or years,
depending on the product.
 As a product progresses through the stages, changes are
made to how the product is marketed.

12. INTRODUCTION STAGE
 Most products fail at this stage? –Why?
 This is the stage in which the product is initially promoted. Public
awareness is very important to the success of a product. If people
don't know about the product they won't go out and buy it.
 There are two different strategies you can use to introduce your
product to consumers:
 Penetration & Skimming

13. Penetration
 This strategy usually set the product price very high initially
and then gradually lowers it over time.
 This is a good strategy to use if there are few competitors for
your product.
 Profits are high with this strategy but there is also a great
deal of risk. If people don't want to pay high prices you may
lose out.

14. Skimming
 In this case you set your prices very low at the beginning and
then gradually increase them.
 This is a good strategy to use if there are a lot of competitors
who control a large portion of the market.
 Profits are not a concern under this strategy. The most
important thing is to get you product known and worry
about making money at a later time.

15. GROWTH
 The Growth stage is where your product starts to grow. In this stage
a very large amount of money is spent on advertising. You want to
concentrate of telling the consumer how much better your product
is than your competitors' products.
 What are the ways in which you could prompt a product?
 If you are successful with your advertising strategy then you will see
an increase in sales. Once your sales begin to increase your share of
the market will stabilize.

16. MATURITY
 The third stage in the Product Life Cycle is the
maturity stage. If your product completes the
Introduction and Growth stages then it will then
spend a great deal of time in the Maturity stage.
 During this stage sales grow at a very fast rate and
then gradually begin to stabilize.

17. DECLINE
 This is the stage in which sales of your product begin to
fall. Either everyone that wants to has bought your
product or new, more innovative products have been
created that replace yours.
 Many companies decide to withdrawal their products
from the market due to the downturn. The only way to
increase sales during this period is to cut your costs
reduce your spending.

18. CONCLUSION
 Every product has got a life cycle and every
product will pass through the stage of decline
someday.
 But, through effective product line decisions and
other strategies, we can extend its profitability
period much longer to our benefits.

19. Thank You!