Huma Rao Asma Ismail Sadaf Ikhtiar Sidra Yousaf Kashif Ehsan

Bt-08-15 Bt-08-30 Bt-08-21 Bt-08-51 Bt-08-

Product portfolio analysis It is used to analyze number of products ,but Product life cycle Look only for one product All old product have its life cycle Some products appear and immediately disappear.

Product life-cycle management (or PLCM) is the succession of strategies used by business management The conditions in which a product is sold (advertising, saturation) changes over time Must be managed as it moves through its succession of stages. The product life cycle goes through multiple phases Involves many professional disciplines Requires many skills, tools and processes.

Firms want their product prevail in market, but Some product introduced and prevail quickly but also disappear quickly e.g, Fashion Toys In contrast some have long life like Pepsi Corn flakes

 It o o o o

depends upon Type of product Level of competition Marketing support Customer taste

is cost incurred process in terms of Design Production Advance promotion cash flow problems usually face during this stage because cash outflow is more than inflow

It

NEW Sales are slowly Heavy promotions need to Create awareness Encourage sales Develop an image

Promotion can be expensive at this stage Cash flow problem occurs Under utilization of resources Firms has limited finance at this stage

Advertisement high Sale high Revenue high When sales of firm high it produce more efficiently as production capabilities progress Cost per unit decrease

Competitor enter into the market by attracting high revenue But firm stabilize its growth and sustain its position

High promotion needed to remind the customer about the product Cash flow positive Costs are lowered as a result of production volumes increasing and experience curve effects Sales volume peaks and market saturation is reached Increase in competitors entering the market Prices tend to drop due to the proliferation of competing products Brand differentiation and feature diversification is emphasized to maintain or increase market share Industrial profits go down

sales volume decline prices, profitability diminish profit becomes more a challenge of production/distribution efficiency than increased sales

Three strategies firm should be follow Withdraw product Wait for the competitors to withdraw product Use extensive strategies

Make a list of items on one side Then analyze each item Lower price of product Here question arise if competitor also use extensive strategies, what firm did?

Rivals also lower price People affiliate price with quality so buy lowering price firm may loss customer permanently Buy one get one(sale) to attract people Try to attract people by adding something more in your product e.g kelloggs do this snacks with most balance diet

Target new market segment If one could used by other user as baby lotion used as moisturizer for adults Sales increase Realistic strategies Evaluate strategic extension Determinism(it is difficult to evaluate what stage design a product)