PRODLCT LIFE CYCLE OF

Presentation by:
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WiIIiam Hesketh Lever
A word trom the Founder.
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INTRODLCTIONTO PLC
The course of a products saIes and profits over its Iifetime is
caIIed the product Iife cycIe.
PLC shows the stages that products go through from
deveIopment to wIthdrawaI from the market.
Product LIfe CycIe (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, etc.
PLC OF LLX SOAP
INTRODUCTION TO LUX:
We aII want to be pampered, to Iook and feeI great And that's just what Lux offers you
on a daiIy basis at a price you can afford.
Lux is the brand of UNILEVER INDIA LTD. It has been winning hearts of INDIAN
consumers for 80 years.
Lux stands for the promise of beauty and gIamour as one of India's most trusted
personaI care brands.
LUX PRODUCTS : Lux had modified their product into
Orchid touch Almond delight Energising fruit Aqua sparkle
LAMOUR FACTOR"
Lux launched the world's fIrst massmarket beauty soap In the &$ In 124 E had been
launched In lnda n 1929.
t that tIme there was only one competItor of Lux, whIch was from Its own brand
"LFE8UDY".
n the InItIal stages Lux was Introduced In the major cItIes of N0 lIke Calcutta, |umbaI
etc.
hAPKETINC DJETIVE$ was to create the product awareness and to attract the
customers towards the product.
The Lux hAPKETINC $TPATECIE$ In the InItIal stages :
Product = They offer only on product In the market. They dId not come up wIth the
dIfferentIated product.
PrIce = n the InItIal stages of the product, they offer the relatIvely hIgher prIce than
theIr competItor (LFE8UDY). 8ecause, they want to recover theIr InItIal cost of makIng
the product.
INTRODLCTION STAGE
AdvertIsIng = n the InItIal stages, they allocate more advertIsIng budget So that more
and more customers could be attracted towards the product.
n ads they targeted the early adoters, who were readIest to buy the product.
The fIrst ambassador, LeeIa ChItnIs.
0IstrIbutIon = was selectIve and only covers the major cItIes of N0 to get
recognItIon In those cItIes.
TheIr dIstrIbutIon channel was through: hanufacturer WhoIesaIer PetaIIer
INTRODLCTION STAGE continued.
Introduction Stage of the LUX Introduction Stage of the LUX
SaIes SaIes
Costs Costs
Profits Profits
Marketing Objectives Marketing Objectives
Product Strategy Product Strategy
Price Strategy Price Strategy
Low saIes Low saIes
High cost per customer High cost per customer
Negative Negative
Create product awareness in major cities in India Create product awareness in major cities in India
Offer a basic product Offer a basic product
Use cost-pIus Use cost-pIus
Distribution Strategy Distribution Strategy BuiId seIective distribution BuiId seIective distribution
Advertising Strategy Advertising Strategy
BuiId product awareness among earIy adopters
and deaIers.
BuiId product awareness among earIy adopters
and deaIers.
n the growth stage, theIr sales rapIdly started rIsIng.
They have expanded theIr market to the other cItIes of N0.
hAPKETINC DJECTIVE$ = The marketIng objectIves of the : were to expand theIr
market to the other cItIes of N0.
nother objectIve was to maxImIze more market share.
n the growth stage, company had the followIng hAPKETINC $TPATECIE$ :
Product = n the growth stage, the company had offered the same product In the
market.
PrIce = n thIs stage, the company had changed theIr prIce to some extent because of
maxImIzIng the market share. ( SlIghtly cut down the prIces )
AdvertIsIng = n the growth stage, they had Increased theIr advertIsIng budget as In the
InItIal stages because of attractIng the new customers or to retaIn the exIstIng
customers.
Sharmla Tayore, Hema Maln, Zeenat Amaan, Juh Chawla, Madhur 0xt, Srdev
GROWTH STAGE
0IstrIbutIon = n thIs stage, company had expanded theIr market to the other cItIes of
N0. TheIr dIstrIbutIon channel was the same as In the InItIal stages of the product.
PromotIon = n the growth stage, the company had also used the dIfferent
proportIonIng strategIes to attract the new and the exIstIng customers.
rowth Stage of the LUX rowth Stage of the LUX
SaIes SaIes
Costs Costs
Profits Profits
Marketing Objectives Marketing Objectives
Product Strategy Product Strategy
Price Strategy Price Strategy
RapidIy rising saIes RapidIy rising saIes
Average cost per customer Average cost per customer
Rising profits Rising profits
Maximize market share Maximize market share
Offer product extensions, services Offer product extensions, services
Price to penetrate market Price to penetrate market
Distribution Strategy Distribution Strategy BuiId intensive distribution BuiId intensive distribution
Advertising Strategy Advertising Strategy
BuiId awareness and interest in the mass
market
BuiId awareness and interest in the mass
market
GROWTH STAGE Continued..
They modIfIed the product by addIng some changes In the product.
n thIs stage, few competItors enter Into the market lIke ( CNTHDL, FFCLDW,
SNTDDF, CHN0FK, F| 0 WLLS and 77EL ).
The company has expanded theIr market to almost all the cItIes of N0.
hAPKETINC DJECTIVE$ = The marketIng objectIve of Lux Is to maxImIze more profIt
whIle defendIng the market share. nd to expand the market to all the cItIes of N0.
hAPKETINC $TPATECIE$ n thIs stage are based on:
Product The Lux has made the modIfIcatIon In the product by IntroducIng:
Lux AImond, Lux DrchId , Lux FruIt, Lux $affron, Lux $andaIwood, Lux Pose,
Lux InternatIonaI, Lux ChocoIate, Lux AromatIc Extracts, Lux DII and Honey.etc
PrIce = The Lux products are now avaIlable at hIgher prIces In the market, the reason
behInd Is that the company's marketIng objectIves Is to maxImIze more profIt.
0IstrIbutIon = Now Lux products are avaIlable In almost all the cItIes of N0. TheIr
dIstrIbutIon channel Is same as In the InItIal stage.
ATLRITY STAGE
AdvertIsIng : n thIs stage Lux advertIsIng has been reduced to some extent because of
the more brand awareness In the mInds of customers.
Fecently, they have shown Ashwarya Ra 8 Abhshek achchan , Kareena Kaoor,
Shah Rukh Khan, Katrna Kaj 8 Pryanka Chora.
PPDhDTIDNAL DFFEP$ :
Lke buy J yet 1 ]ree.
ATLRITY STAGE CONTINLED.
aturity Stage of the LUX aturity Stage of the LUX
SaIes SaIes
Costs Costs
Profits Profits
Marketing Objectives Marketing Objectives
Product Strategy Product Strategy
Price Strategy Price Strategy
Peak saIes Peak saIes
Low cost per customer Low cost per customer
High profits High profits
Maximize profit whiIe defending market
share
Maximize profit whiIe defending market
share
Diversify brand and modeIs Diversify brand and modeIs
Price to match or best competitors Price to match or best competitors
Distribution Strategy Distribution Strategy BuiId more intensive distribution BuiId more intensive distribution
Advertising Strategy Advertising Strategy
Stress brand differences and benefits Stress brand differences and benefits
8esIdes of all campaIgns for the sales promotIon of Lux .The reasons for Its declIne are :
. Currency jluctuatons: UnIlever products are In over countrIes worldwIde, s a
result, It Is exposed to adverse currency fluctuatIons.
4r nstcnce, n 2004, c 5. declne n turn4;er wcs prmcrly due t4 c 4 cpprecct4n
n the c;ercye Eur4 exchcnye rcte.
. SL0W00WN: n year due to hard economIc condItIons In N0 and other
countrIes the sales were hIghly affected as the consumer started lookIng for some
alternate products wIth a cheaper prIce than Lux.
. Cometton: Lux has been facIng competItIon from HUL Itself (LIfebuoy) E from
other companIes lIke:
Codrej Consumer Products : CCPL, ndIa's second largest soap maker wIth . market
share.
wIth leadIng brands such as CINTHDL, FAIPCLDW NIKHAP.
FaIrgIow brand, ndIa's fIrst FaIrness soap, has created marketIng hIstory as one of the
most successful InnovatIons.
DECLINE STAGE
WIpro : The presence of WIpro In the toIlet soap Industry can be seen through theIr brands
such as $ANTDDP and CHAN0PIKA.
n the southern market of ndIa It Is a major market player In toIlet soap.
ITC : t entered the segment last year and has made a strong headway In a short tIme by
growIng to .75 In just fIve months. WIth the brands lIke: $uperIa, FIama 0I WIIIs and
VIveI.
DECLINE STAGE N1INULD
ecline Stage of the LUX ecline Stage of the LUX
SaIes SaIes
Costs Costs
Profits Profits
Marketing obj Marketing obj
Product Strategy Product Strategy
Price Strategy Price Strategy
DecIining saIes DecIining saIes
Low cost per customer Low cost per customer
DecIining profits DecIining profits
Reduce expenditure and miIk the brand Reduce expenditure and miIk the brand
Phase out weak items Phase out weak items
Cut price Cut price
Distribution Strategy Distribution Strategy
o seIective: phase out unprofitabIe
outIets
o seIective: phase out unprofitabIe
outIets
Advertising Strategy Advertising Strategy Reduce to IeveI needed to retain hard-core
IoyaI customers
Reduce to IeveI needed to retain hard-core
IoyaI customers
Few Adverts of Lux then.
Few Adverts of Lux now.
.., ...