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Product Life Cycle.
Transcript of Product Life Cycle.
During the post-maturity stage Maruti Suzuki introduced New Maruti Alto ‘K10’.
With decline in sales of Maruti 800 and Maruti Alto being in Maturity stage, Alto 800 is introduced in 2012.
Hence Maruti Suzuki opted for a diversification strategy for both of its leading products. What is Product Life Cycle (PLC)? Product Life Cycle Product life cycle is the stages through which a product or its category bypass.
Stages of Product Life Cycle-
Not all product reach the final stage, some continues to grow and some rise and fall. Introduction Stage Growth Stage Maturity Stage Decline Stage It is the stage of low growth rate of sales.
Product is new in the market.
A firm usually incurs losses rather than profit.
Information should be communicated to the consumers through various media.
Decent amount of marketing is required. Growth comes with the acceptance of the innovation in the market.
Sales grows rapidly.
Profit starts to flow in.
Manufacturer can experiment with its new ideas and innovation.
Large amount of marketing is done. It starts at the end stage of the growth rate.
It is further divided into 2 stages-
Many new firms enters the market.
Profit increases at decreasing rate.
Aggressive competition in the market.
Sales is maximum at the start but then it remains stable.
More investment in Marketing will decline the profits.
Huge investment in R&D is made. Number of companies starts dominating the market.
Difficult for the existing company to maintain its sale.
Market may perceive the product as 'OLD’.
Profits and Sales decline rapidly.
Liquidation or Diversification is recommended. Product Life Cycle of Maruti Alto Maruti Alto (Old) PLC With introduction of Maruti Alto it quickly jumped to the growth stage. Maruti Alto (Old) PLC Maruti Alto experienced one of the highest Growth period from 2000 to 2008. Maruti Alto (Old) PLC From 2008 to 2010 Maruti Alto was in Pre-Maturity Stage. Maruti Alto (Old) PLC From 2010 till today Maruti Alto is under Post-Maturity stage whereby its sale is not increasing. Maruti K10 PLC Maruti 800 PLC Maruti Alto 800 PLC