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o f f /D r
o S e ll i ni n g
et te r T s D e c l
B c t a t it
Pro d u g e .
St a
a ti on )
e j u v e n
d u c t R
(P ro
DISAGREE

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Team members
• Shantanu Vashishtha(FPG0810/157)
• Shweta Rao(FPG0810/163)
• Siva Namman(FPG0810/165)
• Sonam Sareen(FPG0810/169)
• Sthitija Sahoo(FPG0810/171)
• Shivangi Gupta(FPG0810/159)

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• There is one thumb rule in Economics, i.e. the law of variable
proportion. Which says that everything remains constant,
the units of output will increase at increasing rate, then it
increases at constant and then decreasing with addition of
each new input

• Hence the company should not worry about the product during
the down time rather it should find the loopholes of the
product and rejuvenate with new features and technology

 …….. It takes hundreds of years to make a brand.
Company spends lots of money, resources and time to build a
brand, just to make the customer know about it.


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Brands like Harley – Davidson, Mercedes, Hero Honda
Splendor, Eterno, LML, Lux etc. took years to establish the
brand

The company is not selling off or divesting its product when


they are not performing well in the market because decline
stage is temporary in nature

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Product Life Cycle

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Rejuvenated PLC

Rejuvenate
Introduction Growth Maturity Decline

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DECLINE STAGE
 A product form has reached this stage when it becomes clear
in the market and is no longer able to sustain itself.

 Like the Maturity stage, the Decline stage may last a long time
especially for products that have been adopted by a large
percentage of the market who are not inclined to change how
they satisfy their needs (i.e., Laggards).

 Since the end of the product form is seen as inevitable, there


are no sub-stages here.

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CHARACTERISTICS
• Competition: As time goes on firms drop out until no one is
producing the product

• Target Market: Mostly consists of Laggards who have been
loyal to this type of product for a long time and have not
moved on to newer products

• Product: No new improvements are introduced and some
models are discontinued

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Conti….
• Prices: May be rising as competitors drop out and companies
still in the market have little incentive to engage in price
competition. Also, there may be a large loyal market they
may not be sensitive to price increases. However, some
companies looking to get out of market, but have existing
inventory, may drastically markdown product to encourage
rapid sales

• Promotion: Companies limit promotions to occasional


reminders to loyal customers though overall little is spent.

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Conti……
• Distribution: With declining demand distributors are
removing products. The marketer may even make the
decision to remove the product from unprofitable
distributors. Sales may shift to online distribution or via
non-traditional channels

• Profits: For companies remaining, profits may be stable and
possibly big if this stage takes a long time to play out

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BUT…………
 There are few companies remaining
make a reasonable return as niche
players in a much smaller
marketplace.

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Product Life Cycle Decline
Strategies

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Conti…
• Maintain the product, possibly rejuvenating by adding new
features and finding new uses.

• Reduce the cost and continue to offer it possibly to loyal niche
segment.

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 Brands that revitalizes their


products after confronting with
decline stage

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Harley- Davidson
 It has twice narrowly escaped
bankruptcy but is today one of the most-
recognized motor vehicle brands in the world.
In dire financial straits in the 1980s, it
desperately licensed its name for such ill-
advised ventures as Harley-Davidson cigarettes
and wine coolers. Although consumers love the
brand, sales were depressed by product quality
problems. Harley’s return to greatness was
begun by improving manufacturing processes.
Harley also developed a strong brand
community in the form of an owner’s club,
called the Harley Owners Group( HOG), which
sponsors bike rallies, charity rides and other
motorcycle events. Harley- Davidson has
continued to promote its brand with grass-roots
marketing efforts and finds itself in the
enviable position of having consumer demand
exceed what it can supply.

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Mountain Dew
 Pepsi initially introduced Mountain Dew
in 1969 and marketed it with the countrified
tagline “ Yahoo Mountain Dew! It’ll Tickle
your Innards”. By the 1990’s, the brand was
languishing on store shelves despite an
attempt to evolve the image with outdoor
action scenes. To turn the brand around,
Mountain Dew updated the packaging and
launched ads featuring a group of
anonymous young males- the “Dew
Dudes”- participating in extreme sports
such as bungee jumping, skydiving &
snowboarding while consuming Mountain
Dew. The brand slogan became “ Do the
Dew”. The brand’s successful pursuit of
young soda drinkers led to Mountain Dew
challenging Diet Coke to become the
number-three selling soft drink in terms of
market share by 2000.
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Lego Group
 LEGO Group, the Danish toy company,
enjoyed a 72% global market share of the
construction-toy market, but children were
spending more of their spare time with video
games, computers, & television and less time
with traditional toys. Lego recognized the
need to change or expand its market space. It
redefined its market space as “family
edutainment”, which included toys,
education, interactive technology, software,
computers, and consumer electronics. All
involved exercising the mind & having fun.
Part of Lego Group’s plan is to capture an
increasing share of customer spending as
children become young adults and tehn
parents.

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Dalda
 When daldawas introduced; it
successfully entered most customer
homes as Indian households were
looking for a cheaper alternative for
ghee, however Dalda came with two
negative labels stuck to its neck- it was
a cheaper alternative & it was not the
real thing. As customer started Before
preferring healthier alternatives like
cooking oils, Dalda lost popularity,
now even though Dalda is on its come
back trial in Indian markets, not many
consultants are impressed. In short they
do what Laxmi Mittal did in steel
industry which is to say he picks up the
steel plants has turn them around.
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After 18
Procter & Gamble-Liquid Soap
P&G is the only one which is able to survive
during decline stage of sales of liquid soap while

other drop the product during decline stage.

Its only because of marketing strategies which

P&G followed.

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DOW
 Product life cycles also depend on how broadly we define
the needs of customers in a product market, and who the
competitors are. Consider, for example, the needs related
to storing and preparing foods. Wax paper sales in the
U.S. started to decline when Dow introduced Saran Wrap.
In the early 1970's, sales of Saran Wrap, and similar
products, declined sharply when plastic storage bags
became popular. However, sales increased by the end of
the decade. The product didn't change, but consumer
needs did -- as microwave ovens gained in popularity,
consumers found that plastic wraps worked very well in
microwave cooking.

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Analysis on Baking Soda
 Baking soda, a product traditionally used
for baking cakes and facing decline stage
in the product life cycle has taken an
innovative twist of fate for the good

 Product development and marketing
departments worked together to discover a
creative and very practical new usage of
utilizing baking soda as an odor-removing
agent

 The rest is marketing history and sales
have rejuvenated
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 As a smart marketer, you must carefully


weigh the pros and cons of product
rejuvenation

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According to a ‘retro marketing’ expert quoted in “Can
a Dead Product Live Again?” published by the New
York Times, ”’There’s no real reason that a brand
needs to die…unless it is attached to a product that
‘functionally doesn’t work.’ That is, as long as a given
product can change to meet contemporary performance
standards, ‘your success is really dependent on how
skillful you are in managing the brand’s story so that it
resonates with meaning that consumers like.’”

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REFERENCES

• http://www.mindtools.com/pages/article/newS
TR_80.htm
• http://tolearn.net/marketing/plc.htm
• http://www.brandeo.com/node/999
• http://www.scribd.com/doc/2553805/BRAND-
REVIVAL
• www.articlebase.com



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 Thank you

 Queries????

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