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PRODUCT LIFE CYCLE

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PRESENTED BY
dr.k.pradhan

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Product Life Cycle - Competitive


Marketing

CONTENTS

1
INTRODUCTION
2 GROWTH
3 MATURITY
4 DECLINE
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1
INTRODUCTION
2 GROWTH
3 MATURITY
4 DECLINE

Product Life Cycle - Competitive


Marketing

PRODUCT LIFE CYCLE

INTRODUCT
ION
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GROWTH

MATURITY

Product Life Cycle - Competitive


Marketing

DECLINE

MARUTI 800

COMPANY PROFILE

TYPE :
FOUNDED :

PUBLIC COMPANY
1981

HEADQUARTERS : NEW DELHI, INDIA


KEY PEOPLE :RC BHARGAVA ( CHAIRMAN ), KENICHI AYUKAVA ( CEO )
REVENUE : $369.34 BILLION

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Product Life Cycle - Competitive


Marketing

SCENARIO
INTRODUCTION STAGE
( 1983 1986 )

Took 2 years for Maruti & Suzuki


to sign the dotted line
First car imported, assembled
and sold in 1983
Cheapest car in the market
Huge gap between demand and
supply
Waiting list often took upto 3
years to clear
Targeted urban areas,
Consumers who desire for a
car
Based on SS80, Suzuki fronte

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Product Life Cycle - Competitive


Marketing

PRODUCTS
MARUTI 800

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Product Life Cycle - Competitive


Marketing

PRODUCT SPECIFICATION

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Product Life Cycle - Competitive


Marketing

PRICE

SLOW
SKIMMI
NG

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Product Life Cycle - Competitive


Marketing

10

PROMOTION

SMALL IS
BEAUTIFUL
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Product Life Cycle - Competitive


Marketing

11

NEWSPAPER ADS

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Product Life Cycle - Competitive


Marketing

12

TV COMMERCIAL

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Product Life Cycle - Competitive


Marketing

13

DISTRIBUTION

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Product Life Cycle - Competitive


Marketing

14

GROWTH STAGE ( 1987 1996 )

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Product Life Cycle - Competitive


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15

SALES
Unit sold
1996
1989
1987
1983
0

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50000

100000

150000

Product Life Cycle - Competitive


Marketing

200000

16

PRODUCT VARIANTS
MARUTI 800 AC
UNIQ

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MARUTI- BASIC
MODEL

Product Life Cycle - Competitive


Marketing

17

PRODUCT SPECIFICATION

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Product Life Cycle - Competitive


Marketing

18

PRICE

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Product Life Cycle - Competitive


Marketing

19

PROMOTION

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Product Life Cycle - Competitive


Marketing

20

PRINT MEDIA ADS

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Product Life Cycle - Competitive


Marketing

21

TV COMMERCIAL
Video\Maruti Suzuki 800-Change You
r Life Commercial - YouTube_2.FLV

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Product Life Cycle - Competitive


Marketing

22

DISTRIBUTION

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Product Life Cycle - Competitive


Marketing

23

MATURITY STAGE ( 1997 2002 )

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Product Life Cycle - Competitive


Marketing

24

PRODUCT VARIANTS
MARUTI 800 EX

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Product Life Cycle - Competitive


Marketing

MARUTI 800
DUO

25

MARUTI 800 EX

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Product Life Cycle - Competitive


Marketing

26

MARUTI 800 DUO

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Product Life Cycle - Competitive


Marketing

27

PROMOTION

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Product Life Cycle - Competitive


Marketing

28

SERVICE

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Product Life Cycle - Competitive


Marketing

29

MARUTI SERVICE STATION

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Product Life Cycle - Competitive


Marketing

30

ADVERTISEMENT

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Product Life Cycle - Competitive


Marketing

31

PRODUCT WEBSITE

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Product Life Cycle - Competitive


Marketing

32

TVC

Video\Maruti 800 DUO L


PG TV Commercial (2008
) - YouTube.FLV

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Product Life Cycle - Competitive


Marketing

33

DISTRIBUTION

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Product Life Cycle - Competitive


Marketing

34

DECLINE STAGE ( 2003 UPTO


NOW)

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Product Life Cycle - Competitive


Marketing

35

SALES
SALES
250000
200000
150000

SALES

100000
50000
0

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YEAR 2000 YEAR 2001 YEAR 2002 YEAR 2004

Product Life Cycle - Competitive


Marketing

36

PRODUCT VARIANTS

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Product Life Cycle - Competitive


Marketing

37

MARUTI SUZUKI ALTO

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Product Life Cycle - Competitive


Marketing

38

PRICE

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Product Life Cycle - Competitive


Marketing

39

PHASE OUT,APRIL 2010

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Product Life Cycle - Competitive


Marketing

40

PROMOTION OF MARUTI ALTO

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Product Life Cycle - Competitive


Marketing

41

MARUTI TRUE VALUE

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Product Life Cycle - Competitive


Marketing

42

ADVERTISEMENT

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Product Life Cycle - Competitive


Marketing

43

DISTRIBUTION

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Product Life Cycle - Competitive


Marketing

44

CONTACT

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Product Life Cycle - Competitive


Marketing

45

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Product Life Cycle - Competitive


Marketing

46

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Product Life Cycle - Competitive


Marketing

47

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Product Life Cycle - Competitive


Marketing

48

NOKIA
a

COMPANY PROFILE

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Product Life Cycle - Competitive


Marketing

50

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Product Life Cycle - Competitive


Marketing

51

MARKETING STRATEGIES OF
NOKIA

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Product Life Cycle - Competitive


Marketing

52

Sales
or
Proft
s

PRODUCT LIFE CYCLE OF NOKIA

Maturity
Nokia Symbian
& N- Series

Decline

Nokia Windows
& Symbian
Sales curve
phones

Growth
Nokia E- series

Introducti
on
The Concept Phones

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Time

Product Life Cycle - Competitive


Marketing

50

Lifecycle
Globally Nokias market is at Decline due
to shift from Symbian to Windows phone
devices

Globally & in
India Placed
Here
Rs.

Time

Product life cycle


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Product Life Cycle - Competitive


Marketing

54

INTRODUCTION STAGE ( 1995


2002)
NOKIA 2110

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Product Life Cycle - Competitive


Marketing

55

PRODUCT
1. Entered India in 1995
2. Launched very few models due
to lesser demand & innovation
3. Sold both GSM & CDMA phones
4. Launched 1st model Nokia 2110
with Nokia tune
5. 2110 was 1st model capable of
sending/receiving sms
6.Competed with the then market
leader Motorola

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Product Life Cycle - Competitive


Marketing

56

Nokia 2110

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57

PRICE
a

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Product Life Cycle - Competitive


Marketing

58

PROMOTION
a

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Product Life Cycle - Competitive


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59

PLACE
a

High-end models imported from


China & low-end models
manufactured in Chennais plant
Manufactured/Imported mobiles
stored in Gurgaons mother
warehouse
HCL India is distributor for Nokia
India Pvt. Ltd. for North & East India
For West & South India, Nokia has its
own distribution channel
HCL India supplied these mobiles to
state level distributors like BSB
Marketing, A.G. comm. etc.
Many places HCL India directly
supplied these phones to retailers
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Product Life Cycle - Competitive


Marketing

60

PLACE

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Product Life Cycle - Competitive


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61

GROWTH STAGE ( 2003 2009 )


a

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Product Life Cycle - Competitive


Marketing

62

PRODUCT
a

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Product Life Cycle - Competitive


Marketing

63

NOKIA 3310

64

NOKIA N95
8GB
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Product Life Cycle Competitive Marketing

65

NOKIA N73

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Product Life Cycle Competitive Marketing

66

NOKIA N82

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Product Life Cycle Competitive Marketing

67

NOKIA N91 4/8GB

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Product Life Cycle Competitive Marketing

68

PRICE
a

1. Followed Price skimming


strategy in beginning of growth
stage
2. Launch price of 3310 was
approx. Rs. 21000/3. As profts & popularity
increased prices were slashed
to Rs. 5000/- in 2003 for popular
models like 3310
4. Later-on in coming years, Nokia
adopted Price penetration
strategy
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Product Life Cycle - Competitive


Marketing

69

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Product Life Cycle - Competitive


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70

PROMOTION
a

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Product Life Cycle - Competitive


Marketing

71

PLACE
a

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Product Life Cycle - Competitive


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72

SALES FIGURE ( 2001 2009 )


a

NOKIA
Net Sales

Linear (Net Sales)

Operating Profit

Net Profit

60000
51058
50000

50710

41121

40984

40000
34191
31191
EURO30000
(million)

30016

29455

29267

20000

10000
3362

2200

2001

4780

3381

2002

5011

3592

2003

4330

3207

2004

4639
3616

5488

2005

2006

4306

7985
7205

4966
3988
1197
891

2007

2008

2009

YEARS
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Product Life Cycle - Competitive


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73

GRAPHICAL REPRESENTATION
NOKIA
Net Sales

Operating Profit

Net Profit

60000
51058

50710

50000
41121

40984

40000
34191
31191

EURO (Million)

30000

30016

29455

29267

20000

10000
3362

2200
0
2001

4780
3381

2002

5011
3592

2003

4330
3207

4639
3616

2004

2005

5488

7985
7205
4966
3988

4306

2006

1197
891

2007

2008

2009

YEARS

74

MATURITY STAGE ( 2009 2011 )


a

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Product Life Cycle - Competitive


Marketing

75

PRODUCT
a

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Product Life Cycle - Competitive


Marketing

76

NOKIA N8

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77

PRICE

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Product Life Cycle - Competitive


Marketing

78

PACKAGING
a

Packaging is important because it protects


products as they make their way from factory
to customers

packing

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Attractive, Good & Secure

Product Life Cycle - Competitive


Marketing

79

PROMOTION
1. Offered combo discount
on purchase of Nokia
bluetooth stereo
headset with N8.
2. Offered Sennheiser
music headset free with
select models

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3. During festive occasions


Reebok wrist watches,
sunglasses, t-shirts &
sling bag were also
given
as gift with select80
Product Life
Cycle - Competitive
Marketing

PLACE
a

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Product Life Cycle - Competitive


Marketing

81

DECLINE STAGE ( 2011 Q3 PRESENT )


q

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Product Life Cycle - Competitive


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82

PRODUCT
a

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83

NOKIA LUMIA 800

84

PRICE
a

1. Price penetration strategy


was continued as
companys profts declined
due to cut-throat
competition from Samsung
& local players like
Micromax
2. Had phones ranging from
Rs. 1000 to Rs. 30000
3. Reduction in price also lead
to deterioration in quality
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Product Life Cycle - Competitive


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85

PROMOTION
1. Companies distributed freebies
like wrist watches & t-shirts with
Lumia logo engrossed
2. During festive occasions Reebok
wrist watches, sunglasses, t-shirts
& sling bag were also given as gift
with select models
3. Top 3 performing stores from each
zone were selected for foreign trip
organized by Nokia free of cost
4. Retailers were encouraged to sell
Lumia phones by offering them
more incentives on sale
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Product Life Cycle - Competitive


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PLACE
a

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Product Life Cycle - Competitive


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SALES FIGURE FROM 2009 TO 2012


NOKIA
Net Sales

Linear (Net Sales)

Operating Profit/Loss

Net Profit/Loss

50000
40984

42446
38659

40000

30176

30000

EURO (million)

20000

10000

1197 891

2070 1850

2009

2010

-1073

-2303

2011
-1164

2012
-3106

-10000
YEARS

88

NOKIA MOVING TOWARDS


GROWTH IN Q4-12
NOKIA
Net sales

Linear (Net sales)

Operating profit/loss

12000
10400
10000

10005
9275

8980

8000

7354

8041

7542

7239

6000
EURO (million)
4000

2000
704
0

-487

-71

-954

-1340

-826

-2000
YEARS

89

-576

439

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Product Life Cycle - Competitive


Marketing

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CONTACT

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Product Life Cycle - Competitive


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MARKETING RESEARCH

92

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