Post on 27-Nov-2014
Product Life Cycle
of
• The course of a products sales and profits over its lifetime is called the product life cycle.
• PLC shows the stages that products go through from development to withdrawal from the market.
• Product Life Cycle (PLC):
– Each product may have a different life cycle.
– PLC determines revenue earned.
– Contributes to strategic marketing planning
– To identify when a product needs support, redesign, renovating , withdrawal
Introduction - Product Life Cycle
HistoryAmerican diversified multinational corporation focused on the production, distribution and provision of household, health care and personal products
Started in 1806 by William Colgate, the company was named William Colgate & Company
Sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.
In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet Company.
In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the current name.
Today Colgate has numerous subsidiary organisations spanning 200 countries, but it is publicly listed in only two, the United States and India.
In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
Global Market Share
Products
Time
Sales Introduction Growth Maturity Decline
PLC - Colgate
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Product StrategyProduct Strategy
Price StrategyPrice Strategy
Low sales Low sales
High cost per customerHigh cost per customer
NegativeNegative
Create product awareness in major cities in India
Create product awareness in major cities in India
Offer a basic productOffer a basic product
Use cost-plus Use cost-plus
Distribution StrategyDistribution StrategyBuild selective distributionBuild selective distribution
Advertising StrategyAdvertising Strategy Build product awareness among early adopters and dealers.
Build product awareness among early adopters and dealers.
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Product StrategyProduct Strategy
Price StrategyPrice Strategy
Rapidly rising sales Rapidly rising sales
Average cost per customerAverage cost per customer
Rising profitsRising profits
Maximize market shareMaximize market share
Offer product extensions, servicesOffer product extensions, services
Price to penetrate marketPrice to penetrate market
Distribution StrategyDistribution Strategy Build intensive distributionBuild intensive distribution
Advertising StrategyAdvertising Strategy Build awareness and interest in the mass market
Build awareness and interest in the mass market
SalesSales
CostsCosts
ProfitsProfits
Marketing ObjectivesMarketing Objectives
Product StrategyProduct Strategy
Price StrategyPrice Strategy
Peak salesPeak sales
Low cost per customerLow cost per customer
High profitsHigh profits
Maximize profit while defending market share
Maximize profit while defending market share
Diversify brand and modelsDiversify brand and models
Price to match or beat competitorsPrice to match or beat competitors
Distribution StrategyDistribution Strategy Build more intensive distributionBuild more intensive distribution
Advertising StrategyAdvertising Strategy Stress brand differences and benefitsStress brand differences and benefits
SalesSales
CostsCosts
ProfitsProfits
Marketing objectivesMarketing objectives
Product StrategyProduct Strategy
Price StrategyPrice Strategy
Declining salesDeclining sales
Low cost per customerLow cost per customer
Declining profitsDeclining profits
Reduce expenditure and milk the brandReduce expenditure and milk the brand
Phase out weak itemsPhase out weak items
Cut priceCut price
Distribution StrategyDistribution Strategy Go selective: phase out unprofitable outlets
Go selective: phase out unprofitable outlets
Advertising StrategyAdvertising Strategy Reduce to level needed to retain hard-core loyal customers
Reduce to level needed to retain hard-core loyal customers
REPOSITIONING COLGATE
• Innovative toothpaste with a brand name other than Colgate but under the umbrella of Colgate Palmolive.
• Tapping the rural market by the development of ‘Colgate Ayurvedic Toothpowder‘.
• Introducing sachets of tooth powder for the rural market who buy in smaller lots.
PRODUCT
• For Urban population, products catering to young generation.
• For Urban rich and consuming class, they came up with the products on the basis of functional benefits.
Eg: 1.They launched different toothbrushes for different age groups.
2.They launchecd a special toothpaste and toothbrush for kids in the age group from 4-10 years.
• Aligned according to the competitor's price .
• Chargedhigher premium which focused on consuming and lower income classes.
• Customized package on the basis of price points.
• Positioned Colgate dental white crème and toothpowder towards rural rich segment.
• For rural consuming class they developed Cibaca toothpaste.
• Advertized through T.V. & Print • FM Radio for Urban population & MW
and AM radio for Rural population.• Hoarding on National highways.
• Focused on rural markets by
Increasing the wholesalers to smaller towns.
Tracking the distribution path so that they are covering all the village areas around the towns.
• Increasing circumference of toothpaste tube.
• Free Dental Check-up in mobile vans
• Free Dental Check-up by sending a SMS• Scholarship offers like Learn & earn offer
• Various Surveys like…1. Colgate's Bright Smiles, Bright Futures
: This Educational Program worldwide was
developed to teach children positive oral health habits of basic hygiene, diet and physical activity.
2. Colgate Professional Program: The Program works towards improving oral
health awareness and oral care on a mass scale. Oral care awareness is created and spread through appropriate mechanisms such as exhibitions, the use of audio-visuals, lectures, demonstrations, teacher training Programs .
Attractive offers:• Super Saver Offer for 'All Around Decay
Protection'. Buy 200g plus a 100g tube with a Colgate Extra Clean Toothbrush in a Family Value Pack for Rs. 82/-. Save Rs. 18/-.
• Colgate Maxfresh Gel is the first toothpaste infused with cooling crystals giving you a whole new dimension of freshness. Get a 150g plus a 80g tube with a Colgate Extra Clean Toothbrush in a Freshness Value Pack for Rs. 79/-. Save Rs. 20/-
CURRENT POSITION