Product Life Cycle of Products & strategies for new product development in today's competitive market

1. Product Life Cycle By P.Soma Giri

2. What is Product? A product is anything that can be offered to a market that might satisfy a want or need It is more than physical products; includes services, places, persons, and ideas To create successful new products, the company must: understand it’s customers, markets and competitors develop products that deliver superior value to customers. Products go through life cycles Product planning-involves making decisions about the production and sale of a business’s products.

3. Why do Products fail? Doesn’t match current company objectives Make room for other products Overestimating market size Poor marketing research Obsolete Lost its appeal No longer profitable Conflicts with other products in the same product line Design problems Excessive development costs Incorrectly positioned, priced, or advertised Competitive reaction

4. Product Life Cycle (PLC): The Product Life Cycle (PLC) is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline). Each product may have a different life cycle PLC determines revenue earned Contributes to strategic marketing planning May help the firm to identify when a product needs support, redesign, reinvigorating, withdrawal, etc. May help in new product development planning May help in forecasting and managing cash flow

10. Product Life Cycle of iPods iPod Classic (Oct 2001) iPod Touch (Sept 2007) iPod Shuffle (Jan 2005) iPod Nano (Sept 2005)

11. Timeline of iPod Classic

12. Timeline of iPod Classic

14. Price: 8GB : $249; 32GB: $319; 64GB: $429

15. Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications.

17. Example: New Flavor of Pepsi Market Introduction Pepsi bottles the new flavored product and places it on the market for consumers. Pepsi also spends a lot of money advertising the new flavor creating awareness. Market Growth Customers like the flavor and begin to make routine purchases. Coke introduces their competing flavor. Sales Decline Customers have moved on to the next new flavor. Some loyal fans stay behind. Market Maturity More competitors enter the market taking some of Pepsi’s profits.

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