The product life circuit is an important notion in marketing. It talks about the stages something undergoes from when it was initially considered until it finally is taken off the market. All products does not reach this last stage. Some continue to grow as well as others rise and show up. So, this is actually a concept of product life circuit.
Product life-cycle management (or PLCM) is the succession of strategies employed by business management as a product goes through its life pattern. The situation or condition in which product comes (advertising, saturation) keep changes as time passes.
The goal of P. L. C. are to minimize time to market, improve product quality, decrease prototyping costs, identify potential sales opportunities and earnings efforts, and minimise most severe influences at end-of-life. To make successful services the company must understand its customers, marketplaces and competitors. so the company give attention to these factors.
All products have a particular life time, to create the merchandise life cycle. The life of time something is on the market is highly reliant on its competition, technology and even the knowledge of a company's marketing division. One of the better ways of extending a product's life routine is to regularly accumulate feedback from consumers, learning what they want and want from a particular product.
After a corporation develops something and testing its possible among consumers, the merchandise is usually unveiled to the market. This first part of the product's existence is called the introduction level. A firm is usually trying to build both advertising and brand awareness of the merchandise in the benefits stage. So that's why the business cost stay relatively high. . The first costing strategy would be to enter the marketplace with a higher price in hopes of regain initial development and advertising costs. .
The growth level is when revenue start to grow exponentially, particularly when the product reaches high demand. At this time, competition will increase as others create competitive products. The marketplace head or first company in the industry to create the merchandise will usually maintain steadily its starting price as the sales are incrementing obviously price is acceptable to cuctomer.
Competition will eventually start achieving a saturation point over time. Companies will for a position in the market to contend with the key company. At this time, it will be problematic for new competitors to enter into the market. Some may even walk out business. Market saturation will eventually power companies to lessen prices. It really is during this level that consumer research is really important. A company will need to
determine what features, styles or tastes of the product involved consumers want so it can differentiate its product from competition. A company could also find that the consumers want additional products. Hence, the business's best strategy is to extend its product line to include these additional products.
Declining Sales Stage
Eventually, product sales begins declining unless a firm confirms new uses or marketplaces because of its product. The decline stage may be haste occurence by new technology that replaces the obsolete product. For example, the computer eventually substituted the typewriter. The company may also cut back on advertising through the decline stage. For example, dark and white tv sets are still around but aren't promoted.
sld00311. jpg (749-463)
Ben Sherman is a globally recognized lifestyle brand. It is continuing to grow from its business beginnings in quality t-shirts in Brighton in 1963 and is currently sold in 35 countries around the world. It includes expanded in to the USA, Europe, and Australasia.
In 2004, Ben Sherman was acquired by the American-based company, Oxford Market sectors. This group can be an international attire design, sourcing and marketing
Ben Sherman's name has always been closely linked with the British music landscape and with fashion. Its customers are young and at the forefront of style.
Throughout the years high profile customers include musicians, models, actors and bands, such as Blur, Oasis and the Kaiser Chiefs. The progress of the brand can be traced through changes in musical style which is an integral part of Ben Sherman's marketing strategy.
Ben Sherman has developed balanced marketing mix. This is referred to as the 4 P's - product, price, campaign and place. By getting the mixture right, the company means that its products reach the market segments it is aiming the brand at. This process helps the business continue to be competitive and expands its market talk about and impact.
The marketing combine is like a cake recipe. Most cakes need the essential materials of eggs, flour, sweets and milk. However, a child's birthday wedding cake will require some other recipe to a wedding cake. The main element is to incorporate the materials to have the right cake for the right occasion. The marketing blend works in exactly the same way. The main element elements of product, price, promotion and place are necessary for the correct marketing of the product. Ben Sherman selects the right mixture of each component to fulfill different customers' needs.
Ben Sherman must determine whether to
create a product and then market it to target customers (product-orientated) or
find out what the marketplace desires and then provide it (market-orientated)
To achieve both, the business produces a wide product range that attracts all its target market segments. The number includes casual clothes, formal wear, denim, sneakers and lifestyle accessories, such as underwear, pieces, luggage, belts and fragrances.
. Product life cycle
Ben Sherman uses major fashion shows to unveiling its choices to the press.
The fashion year has two cycles - the spring/summer season and the fall/winter one. The fashion industry is highly competitive and fast-moving. Fashion products generally have a brief life circuit.
This means enough time between the launch of something and the point where that product is 'older' is very quick. Competition amongst fashion retailers causes businesses to refresh their ranges lots of that time period in a year. This topping up modifies the merchandise as it extends to the maturity stage. The increase of a fresh product or style then extends the life of the range. Products need rejuvenating to prevent the drop in sales through the Saturation stage of the life span cycle which could result in an early on decline. The enhancements and changes help sales climb again, earning more sales revenue and revenue, as well as maintaining the Ben Sherman brand on the market.
Ben Sherman has to assess which market segments its products are aimed at and set a cost to match. There are a variety of prices strategies that a business can use for its products including:
cost based charges - where in fact the selling price is set to cover the price of manufacture.
market orientated prices.
Market orientated costing covers a number of different approaches:
market penetration, in which a new product is charged low to get a high level of sales
market skimming - in which a new product has advanced pricing to give high income whilst the product is exclusive in the market
premium costs, where there is a uniqueness and exclusiveness about the product such that it can command a high price
economy rates, which is commonly for no-frills, basic products where the cost of manufacture and marketing are held to a minimumThe price of a product relates to its identified value. Lower priced items will expect an increased level of sales, whilst fewer sales of luxury products may achieve the same earnings through higher pricing.
Low price brands often copy the market leaders and could be generic own brands, such as those made by supermarket chains. The main reason for price here's to point value for- money and such brands do not be expectant of customers to show loyalty.
Ben Sherman produces largely medium-price range products. Its position in the market for clothing is shown on the product map diagram. The mixture of product and price is obviously evident here. These brands are identifiable by their quality and style.
This refers both to the places where Ben Sherman products may be bought and the stations of circulation used to provide the products to these places. Place is not necessarily a physical building like a retail store or shop, but includes any means by which the product is manufactured available to the customer. A business has to balance getting enough of its products to its concentrate on customers against the problems or costs of distributing them.
The purpose of promotion is to acquire and preserve customers. It covers:
'above-the-line', which is using indie media to attain a broad audience easily, but over which the company may have limited control, for example, journal advertising. This extends to a mass audience but can be hard to measure its impact.
'below-the-line', which uses multimedia over which the business has control, for example, direct mailing. This sort of promotion can become more cost-effective and present more measurable response rates.
Ben Sherman is a brand that attracts the children market. Its responsiveness to changing likes popular and music throughout the previous fifty years has provided it with a distinctive traditions of quality, personality and style. This has made Ben Sherman into a great British isles icon, reflecting English culture as it can business around the world.
Whilst each factor of the marketing mixture is important in its own right, the right balance of the four elements is crucial.
Different stages product life cycle of maggi
Why attanoodle was failing?
Strategies taken up to establish new productcategory
What options NIL should take to sustain theimage of a favorite brand image.
Stage at which maggiis in the merchandise lifecycle.
PRODUCT LIFE CYCLE
A concept that delivers ways to trace thestages of any product¶s approval, from itsintroduction (labor and birth) to its decline (death)
High inability rates
Frequent product modification
High marketing and creation costs
Promotion focuses on understanding and information
Nestl India Ltd. (NIL), the Indian subsidiary of the global FMCG major, Nestl SA, created the Maggibrand in India in 1982, using its start of Maggi2 Minute Noodles, an instantaneous noodles product
Increasing rate of sales
Entrance of competitors
Initial healthy profits
Promotion stresses brand ads
Prices normally fall
Development costs are recovered
10 yrs back again it relished around 50% market share in this segment which was valued ataround 250 crores.
Declining sales growth
Extending product line
Stylistic product changes
Heavy deals to retailers and consumers
Prices and profits fall
In 2003 Hindustan Lever Ltd was all set to take on Nestle'sbestselling Maggi2-minute noodles by introducing a new group of liquid snacks under it foodbrand, KnorrAnnapurna
Long-run drop in sales
Large inventories of unsold items
Elimination of most non essentialmarketing expenses