Tuesday, 12 August 2014

Product Life Cycle


Like human beings, products also have an arc. From birth to death,human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life cycle is seen in case of products. PLC has to do with the life of a product in the market with respect to business/ commercial costs and sales measures.

The four stages of product  life cycle of horlicks are as follows:

1.INTRODUCTION STAGE- 
  •  Horlicks a brand was established before 6 decades back in 1960.
  • It is owned by GlaxoSmithKline consumer health care.
  • It was heavily advertised as a kid's nutritional drink.
  • It was a substitute of "Milk" as baby food.
  • It acquired more than 50% market share in Indian milk beverage market.
2.GROWTH STAGE-
  • Excels at delivering the benefits truly desired by customers.
  • Pricing strategy based on 'value for money'.
  • Proper positioning.
  • Consistency.
  • Creating entry barriers.
3.MATURITY STAGE-
  • Product quality.
  • By winning trust of consumer.
  • By getting better labels than its competitors.
  • By getting a tagline such as ,"taller, stronger, sharper" that got stuck  in the mind of  consumers for years.
4.DECLINE STAGE-
Horlicks has yet to go through the decline stage. However the other nutritional drinks such as milo, bournvita, complan etc offer a great competition to horlicks and may soon push it to the reaches of the decline stage.

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