2 PLC is the course that a product’s sales and profits take over its lifetime. The PLC has 5 distinct stages :1. Product development.2. Introduction3. Growth4. Maturity5. Decline
3 Product Development:begins when the company finds and develops a new-product idea.During product development, sales are zero and the company’s investment cost mount.( Note : Parity Product, White chocolate ).
4 Introduction :is a period of slow sales growth as the product is introduced in the market.Profits are nonexistent in this stage because of the heavy expenses of product introduction.Profit : -Sales : low.Promotion : High.Much effort to attract distributors.
5 Growth stage :- sales will start climbing quickly.- New competitors will enter the market.( Komix vs Kalibex, Extra Joss vsHemaviton Bubuk vs Kuku BimaGinseng ).- Increase in the number of distribution outlets.- Promotion spending : high.- Profit : increase- Manufacturing cost : fall.
6 Maturity Stage :- Normally last longer than previousstages.- Most products are in the maturity stage.- Most of marketing management dealswith mature products.- Product Managers should do more thanride along with mature products.- They should modify the market, product, and marketingmix.
7 E.g :- Rinso mencuci lebih bersih.- Rinso bisa membuat warna awet disamping mencuci lebih bersih.- Jangan takut kotor, bagi Rinso kotortidak masalah.
8 E.g :Pepsodent :- Membuat gigi putih cemerlang- Pepsodent baru : merawat gigi dan gusi.- Sekarang : Pepsodent mencegah gigiberlubang.
9 E.g :Kijang :- Kijang “kaleng” ( 1982 ).- Perbaikan marketing mix : produk lebihbagus, harga makin naik, iklan untukmembentuk citra produk.- Ada Kijang bensin, ada Kijang disel.- Keluar Kijang Innova.- Harga lebih mahal dari Mercedes.
11 Sales decline for many reasons : technological advances : pager, kertas karbon, computer – laptop – HP.Shift in consumer tastesIncreased competition : market growth of the product vs industrial growth.
12 Management’s decision on the declining products : - maintain its brands in the hope thatcompetitors will leave the industry, e.g :P&G maintained liquid soap business asothers withdrew.Ways : doubling the size, changing theshape, etc.
13 - harvest the product, means : reducing various cost ( plant andequipment, maintenance, R&D,advertising, sales force, etc ) and hopingthe sales hold up.- drop the product.
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