PRODUCT LIFE CYCLE A company¶s differentiating and positioning strategy must change as the product, market, and competitors change over time. For that it is important to understand the concept of product life cycle and the changes that are normally made as the product passes through each stage ot the life cycle. THE CONCEPT OF THE PRODUCT LIFE CYCLE 1. Products have limited life. 2. Products sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. 3.
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Profit rise and fall at different stages of the product life cycle. 4. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in such stage of their life cycle. Most product life cycle curves are portrayed as bell-shaped curves. This curve is typically divided into four stages: y y y y Introduction Growth Maturity Decline INTRODUCTION STAGE OF PLC GROWTH STAGE MATURITY STAGE DECLINE STAGE ABOUT THE COMPANY y y y y Cadbury started in 1824 by John Cadbury.
In India, Cadbury began its operation in 1948 by importing chocolates. Cadbury India operates in four categories mainly Chocolate Confectionery, Milk Food Drinks, Candy and Gum category. Cadbury enjoys a value market share of over 70%- the highest Cadbury brand share in the world. PRODUCTS HANDLED Indian brands include: y y y y y y y y y Dairy Milk 5 star Perk Tempetation Celebrations Eclairs Gems Bytes Bournvita PRODUCT LIFE CYCLE OF CADBURY ? Cadbury is in its Maturity Stage as its revenue growth was up 12% and in India it grew up by 23%.
New add-ons are being added to keep the excitement on and to stay in the market in pace with their competitors. Cadbury has kept a good look on their competitors and does spends a good amount on advertisements by endorsing Brand Ambassadors for Cadbury (Amitabh Bacchan) and also coming with brand extension with new products. 5 Star has come out of its growth stage and entered the Maturity Stage and hence we are seeing few extensions in the product (Crunchy and Fruit & Nut) to keep that product developing. ? ? RE LAUNCHING Cadbury is re-launching the product because the product has crossed the maturity stage of the product life cycle. Once the product finishes its maturity level, the sales may start decreasing so in order to increase the sales by 3-5% and keep the product in touch with the competition the product is re-launched. As India is emerging market, hence the company forecasts the sales of the hocolates to grow by 8% after launching 5 Star Jelly in different flavours.
Target audience will be small school going kids mostly in rural areas who will give this Rs. 2 as gift to all their friend on their birthday. 5 STAR JELLY Weight (in grams) Price( in Rs) 30 10 15 5 2 2 INGREDIENTS Nougat+Caramel63%, liquid glucose, sugar, hydrogenated vegetable oils, milk solids, cocoa solids, invert sugar, soya solids, salt, emulsifiers( E471), edible gum(412) and acidity regulator(526), milk chocolate 37%, sugar, cocoa butter, milk solids, cocoa solids, emulsifier( E442,E476) +fruit flavor+fruit jelly.
FLAVOURS ? ? ? ? Orange Mango Strawberry Pineapple CONCLUSION ? ? Every product has a life cycle and every company focuses on extending it. Cadbury five star is present in the market from various decade so strategies are being made order extend the plc, so that customers can make more use of products. Re-packaging, innovating new flavors and promotional tactics can extend the product life cycle and the product can remain for a longer time in the market. ?