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PRODUCT LIFE CYCLE

OF
26/08/09

Presentation by:

3.AVICK BISWAS

MARKETING
MANAGEMENT
“ To make cleanliness commonplace, to lessen
work for women, to foster health and contribute
to personal attractiveness, that life may be
more enjoyable and rewarding for the people


who use our products.

William Hesketh Lever

Doing well and doing good.


INTRODUCTION TO PRODUCT
• LIFE CYCLE
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, etc.
PLC OF LUX
• INTRODUCTION TO LUX: SOAP
“GLAMOUR FACTOR”

• We all want to be pampered, to look and feel great And that's just what Lux offers you on a
daily 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 glamour as one of India's most trusted personal
care brands.
LUX PRODUCTS : Lux had modified their product into:

• Orchid touch Almond delight Energising fruit Aqua sparkle


INTRODUCTION

STAGE
Lux launched the world’s first mass-market beauty soap in the US in 1924 & had been
launched in India in 1929.

• At that time there was only one competitor of Lux, which was from its own brand
“LIFEBUOY”.

• In the initial stages Lux was introduced in the major cities of INDIA like Calcutta, Mumbai etc.

• MARKETING OBJETIVES - was to create the product awareness and to attract the
customers towards the product.

• The Lux MARKETING STRATEGIES in the initial stages :

• Product = They offer only on product in the market. They did not come up with the
differentiated product.

• Price = In the initial stages of the product, they offer the relatively higher price than their
competitor (LIFEBUOY). Because, they want to recover their initial cost of making the
product.
INTRODUCTION STAGE
continued…
• Advertising = In the initial stages, they allocate more advertising budget So that more and
more customers could be attracted towards the product.
• In ads they targeted the early adopters, who were readiest to buy the product.
• The first ambassador, Leela Chitnis.

Distribution = was selective and only covers the major cities of INDIA to get recognition in
those cities.
• Their distribution channel was through: Manufacturer Wholesaler & Retailer
Introduction Stage of the LUX

Low sales
Sales

High cost per customer


Costs

Negative
Profits

Create product awareness in major cities in India


Marketing Objectives

Product Strategy Offer a basic product

Price Strategy Use cost-plus

Distribution Strategy Build selective distribution

Build product awareness among early adopters


Advertising Strategy
and dealers.
GROWTH

STAGE
In the growth stage, their sales rapidly started rising.
• They have expanded their market to the other cities of INDIA.

• MARKETING OBJECTIVES = The marketing objectives of the Lux were to expand their
market to the other cities of INDIA.
• Another objective was to maximize more market share.

• In the growth stage, company had the following MARKETING STRATEGIES :

• Product = In the growth stage, the company had offered the same product in the market.

• Price = In this stage, the company had changed their price to some extent because of
maximizing the market share. ( Slightly cut down the prices )

• Advertising = In 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.
• Sharmila Tagore, Hema Malini, Zeenat Amaan, Juhi Chawla, Madhuri Dixit, Sridevi
GROWTH STAGE CONTNUED….
• Distribution = In this stage, company had expanded their market to the other cities of
INDIA. Their distribution channel was the same as in the initial stages of the product.

• Promotion = In the growth stage, the company had also used the different proportioning
strategies to attract the new and the existing customers.

Growth Stage of the LUX

Sales Rapidly rising sales

Costs Average cost per customer

Profits Rising profits

Marketing Objectives Maximize market share

Product Strategy Offer product extensions, services

Price Strategy Price to penetrate market

Distribution Strategy Build intensive distribution

Advertising Strategy Build awareness and interest in the mass


market
MATURITY

STAGE
They modified the product by adding some changes in the product.
• In this stage, few competitors enter into the market like ( CINTHOL, FAIRGLOW,
SANTOOR, CHANDRIKA, FIAMA DI WILLS and VIVEL ).

• The company has expanded their market to almost all the cities of INDIA.

• MARKETING OBJECTIVES = The marketing objective of Lux is to maximize more profit


while defending the market share. And to expand the market to all the cities of INDIA.

• MARKETING STRATEGIES In this stage are based on:

• Product = The Lux has made the modification in the product by introducing:
Lux Almond, Lux Orchid , Lux Fruit, Lux Saffron, Lux Sandalwood, Lux Rose,
Lux International, Lux Chocolate, Lux Aromatic Extracts, Lux Oil 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.

• Distribution = Now Lux products are available in almost all the cities of INDIA. Their
distribution channel is same as in the initial stage.
MATURITY STAGE
CONTINUED…
• Advertising = In this stage Lux advertising has been reduced to some extent because of
the more brand awareness in the minds of customers.
Recently, they have shown Aishwarya Rai , kareena kapoor & Shah Rukh khan .

• PROMOTIONAL OFFERS : ----


• Like buy 3 get 1 free.

Maturity Stage of the LUX

Sales Peak sales

Costs Low cost per customer

Profits High profits

Marketing Objectives Maximize profit while defending market


share
Product Strategy Diversify brand and models

Price Strategy Price to match or best competitors

Distribution Strategy Build more intensive distribution

Advertising Strategy Stress brand differences and benefits


DECLINE
• STAGE
Besides of all campaigns for the sales promotion of Lux .The reasons for its decline are :

• 1. Currency fluctuations: Unilever products are in over 100 countries worldwide, As a


result, it is exposed to adverse currency fluctuations.
• For instance, in 2004, a 5.9% decline in turnover was primarily due to a 4% appreciation in
the average Euro exchange rate.

• 2. SLOWDOWN: In year 2008 - 09 due to hard economic conditions in INDIA and other
countries the sales were highly affected as the consumer started looking for some
alternate products with a cheaper price than Lux.

• 3. Competition: Lux has been facing competition from HUL itself (Lifebuoy) & from other
companies like:-

• Godrej Consumer Products : GCPL, India’s second largest soap maker with 9.2% market
share.
• with leading brands such as CINTHOL, FAIRGLOW & NIKHAR.
• Fairglow brand, India's first Fairness soap, has created marketing history as one of the
most successful innovations.
DECLINE STAGE
CONTINUED…
Wipro : The presence of Wipro in the toilet soap industry can be seen through their brands such
as SANTOOR and CHANDRIKA.
• In the southern market of India it is a major market player in toilet soap.

ITC : It entered the segment last year and has made a strong headway in a short time by
growing to 1.75% in just five months. With the brands like: Superia, Fiama Di Wills and
Vivel.

Decline Stage of the LUX

Sales Declining sales

Costs Low cost per customer

Profits Declining profits

Marketing obj Reduce expenditure and milk the brand

Product Strategy Phase out weak items

Price Strategy Cut price


Go selective: phase out unprofitable
Distribution Strategy
outlets
Advertising Strategy Reduce to level needed to retain hard-core
loyal customers
Film stars promoting the
product Lux

Thank

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