Product Life Cycle
of
Introduction - Product Life Cycle
• The course of a products sales and profits over its lifetime is called the product life cycle.
• PLC shows the stages that products go through from development to withdrawal from the
market.
• Product Life Cycle (PLC):
– Each product may have a different life cycle.
– PLC determines revenue earned.
– Contributes to strategic marketing planning
– To identify when a product needs support, redesign, renovating , withdrawal
History
American diversified multinational corporation focused on the production, distribution and
provision of household, health care and personal products
Started in 1806 by William Colgate, the company was named William Colgate & Company
Sold the first toothpaste in a tube, Colgate Ribbon Dental Cream, in 1896.
In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-Palmolive-Peet
Company.
In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive Company", the
current name.
Today Colgate has numerous subsidiary organisations spanning 200 countries, but it is
publicly listed in only two, the United States and India.
In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars.
Global Market Share
Products
PLC - Colgate
Maturity Decline
Sales Introduction Growth
Time
Sales
Sales Low
Lowsales
sales
Costs
Costs High
Highcost
costper
percustomer
customer
Profits
Profits Negative
Negative
Marketing Create
Createproduct
productawareness
awarenessin
in major
majorcities
MarketingObjectives
Objectives cities
in India
in India
Product
ProductStrategy
Strategy Offer
Offeraabasic
basicproduct
product
Price
PriceStrategy
Strategy Use
Usecost-plus
cost-plus
Distribution
DistributionStrategy Build
Strategy Buildselective
selectivedistribution
distribution
Advertising
AdvertisingStrategy Build
Strategy Buildproduct
productawareness
awarenessamong
amongearly
early
adopters and dealers.
adopters and dealers.
Sales
Sales Rapidly
Rapidlyrising
risingsales
sales
Costs
Costs Average
Averagecost
costper
percustomer
customer
Profits
Profits Rising
Risingprofits
profits
Marketing
MarketingObjectives
Objectives Maximize
Maximizemarket
marketshare
share
Product
ProductStrategy
Strategy Offer
Offerproduct
productextensions,
extensions,services
services
Price
PriceStrategy
Strategy Price
Priceto
topenetrate
penetratemarket
market
Distribution
DistributionStrategy
Strategy Build
Buildintensive
intensivedistribution
distribution
Advertising Build
Buildawareness
awarenessand
andinterest
interestin
inthe
themass
AdvertisingStrategy
Strategy mass
market
market
Sales
Sales Peak
Peaksales
sales
Costs
Costs Low
Lowcost
costper
percustomer
customer
Profits
Profits High
Highprofits
profits
Marketing Maximize
Maximizeprofit
profitwhile
whiledefending
defending market
market
MarketingObjectives
Objectives
share
share
Product
ProductStrategy
Strategy Diversify
Diversifybrand
brandand
andmodels
models
Price
PriceStrategy
Strategy Price
Priceto
tomatch
matchor
orbeat
beatcompetitors
competitors
Distribution
DistributionStrategy
Strategy Build
Buildmore
moreintensive
intensivedistribution
distribution
Advertising
AdvertisingStrategy
Strategy Stress
Stressbrand
branddifferences
differencesand
andbenefits
benefits
Sales
Sales Declining
Decliningsales
sales
Costs
Costs Low
Lowcost
costper
percustomer
customer
Profits
Profits Declining
Decliningprofits
profits
Marketing
Marketingobjectives
objectives Reduce
Reduceexpenditure
expenditureand
andmilk
milkthe
thebrand
brand
Product
ProductStrategy
Strategy Phase
Phaseout
outweak
weakitems
items
Price
PriceStrategy
Strategy Cut
Cutprice
price
Go
Goselective:
selective:phase
phaseout
outunprofitable
unprofitable
Distribution
DistributionStrategy
Strategy outlets
outlets
Reduce
Reduceto tolevel
levelneeded
neededto
toretain
retainhard-core
hard-core
Advertising
AdvertisingStrategy
Strategy loyal
loyalcustomers
customers
REPOSITIONING COLGATE
PRODUCT
• Innovative toothpaste with a brand name other
than Colgate but under the umbrella of
Colgate Palmolive.
• Tapping the rural market by the development
of ‘Colgate Ayurvedic Toothpowder‘.
• Introducing sachets of tooth powder for the
rural market who buy in smaller lots.
• For Urban population, products catering to young
generation.
• For Urban rich and consuming class, they came up
with the products on the basis of functional benefits.
Eg: [Link] launched different toothbrushes for different
age groups.
[Link] launchecd a special toothpaste and
toothbrush for kids in the age group from 4-10
years.
• Aligned according to the competitor's price .
• Chargedhigher premium which focused on
consuming and lower income classes.
• Customized package on the basis of price
points.
• Positioned Colgate dental white crème and
toothpowder towards rural rich segment.
• For rural consuming class they developed
Cibaca toothpaste.
• Advertized through T.V. & Print
• FM Radio for Urban population & MW and
AM radio for Rural population.
• Hoarding on National highways.
• Focused on rural markets by
Increasing the wholesalers to smaller towns.
Tracking the distribution path so that they are
covering all the village areas around the towns.
• Increasing circumference of toothpaste tube.
• Free Dental Check-up in mobile vans
• Free Dental Check-up by sending a SMS
• Scholarship offers like Learn & earn offer
• Various Surveys like…
1. Colgate's Bright Smiles, Bright Futures:
This Educational Program worldwide was
developed to teach children positive oral health
habits of basic hygiene, diet and physical activity.
2. Colgate Professional Program:
The Program works towards improving oral
health awareness and oral care on a mass scale.
Oral care awareness is created and spread through
appropriate mechanisms such as exhibitions, the
use of audio-visuals, lectures, demonstrations,
teacher training Programs .
Attractive offers:
• Super Saver Offer for 'All Around Decay
Protection'. Buy 200g plus a 100g tube with a
Colgate Extra Clean Toothbrush in a Family
Value Pack for Rs. 82/-. Save Rs. 18/-.
• Colgate Maxfresh Gel is the first toothpaste
infused with cooling crystals giving you a
whole new dimension of freshness. Get a 150g
plus a 80g tube with a Colgate Extra Clean
Toothbrush in a Freshness Value Pack for Rs.
79/-. Save Rs. 20/-
CURRENT
POSITION
