PRODUCT LIFE CYCLE

The Product Life Cycle (PLC) is used to map the lifespan of a product. It is the period of time over which an item is developed, brought to market and eventually removed from the market. There are generally four stages in the life of a product. These four stages are the Introduction stage, the Growth stage, the Maturity stage and the Decline stage. There is no set time period for the PLC and the length of each stage may vary. One product’s entire life cycle could be over in a few months. Another product could last for years. Also, the introduction stage may last much longer than the growth stage and vice versa. The four stages in a Product Life Cycle are:

Introduction: Product is introduced in the market with intention to build a clear identity and heavy promotion is done for maximum awareness. Before actual offering of the product to customers, product passes through product development, involves prototype and market tests. Companies incur more costs in this phase and also bear additional cost for distribution. On the other hand, there are a few customers at this stage, means low sales volume. So, during introductory stage company’s profits shows a negative figure because of huge cost but low sales volume.

Growth: In this stage, company’s sales and profits starts increasing and competition also begin to increase. The product becomes well recognized at this stage and some of the buyers repeat the purchase patterns. During this stage, firms focus on brand preference and gaining market share.

Maturity: At maturity stage, brand awareness is strong so sale continues to grow but at a declining rate as compared to past. At this stage, there are more competitors with the same products. So, companies defend their market share.  At this stage usually loyal customers make purchases.

Decline: Decline in sales, change in trends and unfavorable economic conditions explain decline stage. At this stage market becomes saturated so sales declines. It may also be due technical obsolescence or customer taste has been changed.

PLC OF MAGNUM

Magnum was introduced in 15th of June,2001.

Effective weights of mass audience advertising publicly displayed in the summer landscape, would strengthen consumer attachment to the brand and develop strong associations with the summer season .The first premium-quality ice cream to enter the adult impulse market. Magnum was introduced in Chennai first and then rolled out in other cities like  Mumbai, Hyderabad, Bangalore and Pune. Advertisements and campaigns were carried out to build the new product of Kwality walls-MAGNUM.As the chocolate bar is priced high as compared to other choco bars it was necessary to develop a demand for such a premium ice cream product in the emerging country like India.

Magnum is considered to be currently in the growth phase. The sales of Magnum have increased over the recent years as consumers now are more aware about this product through the expansion of intense television advertisements and creative marketing campaigns. Magnum’s goal during this stage would be to gain consumers preference and further increase their sales. 

Related Posts:

• PRODUCT MIX ELEMENTS According to AMA, Product mix is defined as: “The full set of products offered for sale by an organization. The product mix includes all product lines and categories. It may be defined more narrowly in specific cases to … Read More
• DISTRIBUTION Distribution channel or the marketing channel plays a very crucial role in making the product available to the final customer or the target consumer. There are various types of marketing channels or distribution chann… Read More
• PRODUCT LEVELS CORE BENEFIT : The benefit the customer is really buying is satisfaction and indulgence. Magnum being a premium ice cream brand has to offer these basic benefits to the customer in order to gain the customer… Read More
• PROMOTION Promotion (also one of the 4P’s of marketing) which is known as marketing communication is one of the major attribute for any of the product or services. For any brand one of the major issues faced is that of sus… Read More
• PRICING Pricing is the process of determining what monetary benefit a company will receive in exchange for its products. Factors that affect pricing of any product are as follows: i.         Manufacturing cos… Read More