A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:
Product Life Cycle Diagram
In the introduction stage, the firm seeks to build product awareness and develop a market for the product. The impact on the marketing mix is as follows: Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Distribution is selective until consumers show acceptance of the product. Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.
In the growth stage, the firm seeks to build brand preference and increase market share. Product quality is maintained and additional features and support services may be added. Pricing is maintained as the firm enjoys increasing demand with little competition. Distribution channels are added as demand increases and customers accept the product. Promotion is aimed at a broader audience.
... stage that a firm should consider modifying three elements: the market, product and marketing mix. Modifying the market involves the firm trying to increase ... a firm's pricing policy relate to the product's life cycle? When a company launches a new product, it knows the product won't last forever. ...
At maturity, the strong growth in sales diminishes. Competition may appear with similar products. The primary objective at this point is to defend market share while maximizing profit. Product features may be enhanced to differentiate the product from that of competitors. Pricing may be lower
because of the new competition.
Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. Promotion emphasizes product differentiation.
As sales decline, the firm has several options:
Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product – reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. The marketing mix decisions in the decline phase will depend on the selected strategy. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. The price may be maintained if the product is harvested, or reduced drastically if liquidated.
Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap. Subsequently it was launched in the US in 1916, and marketed as a laundry soap targeted specifically at ‘delicates’. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use. Lux is currently a product of Unilever. The name “Lux” was chosen as the Latin word for “light” and because it was suggestive of “luxury.” Lux toilet soap was introduced as a bathroom soap in the US in 1925, and in the UK in 1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has been marketed in several forms, including handwash, shower gel and cream bath soap. Lux soap was launched inIndia in 1929. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. It was branded in India as “the beauty soap of film stars’. As of June 2009 Lux is sold in over 100 countries .
Keurig: Managing a New Product Launch I. INTRODUCTION Everyone has a morning ritual while getting ready for the day’s activities. Some people exercise. Some people shower. Some people help get their children ready for school. Some people watch the news or listen to traffic reports. Some people drink coffee. In fact, in 2001, 20 million Americans drank gourmet coffee on a daily basis (Sherry). ...
From the 1930s right through to the 1970s, Lux soap colours and packaging were altered several times to reflect fashion trends. In 1958 five colours made up the range: pink, white, blue, green and yellow. People enjoyed matching their soap with their bathroom colours. In the early 1990s, Lux responded to the growing trend away from traditional soap bars by launching its own range of shower gels, liquid soaps and moisturising bars. Lux beauty facial wash, Lux beauty bath and Lux beauty shower were launched in 1992. In 2004, the entire Lux range was relaunched in the UK & Ireland to include five shower gels, three bath products and two new soap bars. 2005 saw the launch of three exciting new variants with dreamy names such as “Wine & Roses” bath cream, “Glowing Touch” and “Sparkling Morning” shower gels. Did you know?
Since the 1930s, over 400 of the world’s most stunning and sensuous women have been proudly associated with Lux advertisements. Marilyn Monroe, Brigitte Bardot, Demi Moore and, more recently, our own Catherine Zeta-Jones, have all been part of the Lux glamour story. The name Lux means ‘light’ in Latin, however the name was chosen for its play on the word ‘luxury’.
Lux soap was first launched in the UK in 1899 as a flaked version of Sunlight soap.Subsequently it was launched in the US in 1916, and marketed as laundry soap targeted specifically at ‘delicates’. Lever Brothers encouraged women to home launder their clothes without fear of satins and silks being turned yellow by harsh lyes that were often used in soaps at the time. The flake-type soap allowed the manufacturer some leeway from lye because it did not need to be shaped into traditional cake-shaped loaves as other soaps were. The result was a gentler soap that dissolved more readily and was advertised as suitable for home laundry use Lux is currently a product of Unilever. The name “Lux” was chosen as the Latin word for “light” and because it was suggestive of “luxury.” Lux soap was introduced as bathroom soap in the US in 1925 and in the UK in 1928 as a brand extension of Lux soap flakes. Subsequently Lux soap has been marketed in several forms, including hand wash, shower gel and cream bath soap. Lux soap was launched in India in 1929. The very first advertisement in 1929 featured Leela Chitnis as its brand ambassador. It was branded in India as “the beauty soap of film stars’. As of June 2009 Lux is sold in over 100 countries
This industry report offers the most up-to-date market data on the actual market situation, trends and future outlook for fruit and vegetable juice in India. The research includes historic market data from 2007 to 2013 and forecasts until 2018 which makes the report an invaluable resource for industry executives, marketing, sales and product managers, analysts, and other people looking for key ...
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. 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
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 )
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•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
• 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
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.
• 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.
•Besides of all campaigns for the sales promotion of Lux .The reasons for its decline are :
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
•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
•Wipro : The presence of Wipro in the toilet soap industry can be seen
through their brands such as SANTO OR 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
PRICE:- price level,
Competitive prices: Neither high nor low
Price segment of toilet soaps