PRODUCT LIFE CYCLE

By Akash Sarda
2013002
Products do not live for time immemorial, and like people they also pass through various
stages from birth to death. A product life cycle is divided into four stages although all
products may not pass through all the stages. Each stage in a products life cycle presents the
seller with different problems and opportunities. Marketing communication too needs to
adapt as products transit from one stage to the other
Feature of toothpaste:
Pure and Mild
Effectiveness
No harsh chemicals
Unique Formulation
Fights Bad breath
Removes stains
Whitens Teeth

Research Work:




Indian Oral Care industry (including toothpaste and tooth powder) is about Rs.
35million.
Colgate and HUL contributes around three fourth of total market.
Other major players include Dabur and Anchor group together contributing around
15-20% of total market.

12, 12%
4, 4%
48, 48%
30, 30%
6, 6%
Market Share
Dabur
Anchor
Colgate
HULs Pepsodent and
Close Up
Current Trends in Indian Toothpaste:
There are only two players in kid segment-
Colgate Tooth paste 6-12
Colgate Kids Tooth paste- Bubble fruit Pink
Colgate Kids Tooth paste- Bubble fruit Blue
Pepsodent 4-12 years
Pepsodent Kids
Launch of a new toothpaste and its PLC

Name of Toothpaste: Jack and Jill
Audience: Kids
Demographics:
Age- 8 months to 3 years
Target audiences- Mothers
Life style- Upper Middle class and Upper class
Behavioural characteristics: Caring and fussy about hygiene of child, aspire to be the
best of all.
USP: First time launch of Oral Care product in the form of liquid paste for children 8
months to 3 years.
Product Description: Jack and Jill cleaner for baby who are unable to spit out, prevents
tooth decay due to germ spread after nursing.
It cures prevention, whitening, anti plague, bad breath removal.
Product Life Cycle-
The stages of PLC are as follows.
Introduction Stage
Growth Stage
Maturity Stage
Decline Stage
Introduction Stage
When the product toothpaste is introduced sales will be low until customers become aware of
the product and its benefits. There would be high spending done on Advertisements by
targeting the early adopters. The main goal would be to establish a market and build primary
demand for the product class.
The product Jack and Jill Tooth paste would be relatively undifferentiated.
The price would be generally high, assuming a skim pricing strategy for a high profit margin
as the early adopters buy the product and the firm seeks to recoup the development costs
quickly.
Distribution at the introductory stage would be selective and scattered as the firm will
commence implementation of the distribution plan.
There would be heavy promotions made for the toothpaste so as to create brand awareness
among its target audience.
Growth Stage
The growth stage is a period of rapid revenue growth. Sales increase as more customers; here
in this case the Mothers become aware of the toothpaste and its benefits.
Once the sales increase, the marketing team of Jack and Jill toothpaste would expand its
distribution. The main goal here will be to gain consumer preference and increase sales.
For this if required, the firm will adapt new features in the toothpaste, its packaging, etc.
If demand is high for the toothpaste, the price would be high or reduced in order to capture
additional customers.
The distribution would be more intensive if the demands are high.
There would also be promotional campaign so as to build the brand preference.
Maturity stage
The maturity stage is the most profitable. While sales continue to increase into this stage,
they do so at a slower pace. Because brand advertising is strong, advertising expenditures
would be reduced. Though there is no much competition for this product , the market share
would be maintained.
Also the main market modification would be:
Converting non users
Entering new market segments
And product modification would be:
Quality Improvement
Adopting advance technology
Repetitive advertising would be done to remind the customers.
Decline stage
Eventually sales begin to decline as the market becomes saturated, the product becomes
technologically obsolete, or customers taste changes. If the toothpaste has developed brand
loyalty, the profitability may be maintained longer.
During the decline stage, the firm generally has three options:
Maintain the product in hopes that competitors will exit. Reduce costs and find new
users for the product.
Harvest it, reducing marketing support and coasting along until no more profit can be
made.
Discontinuing the product, when no more profit can be made or there is a successor
product.
The marketing strategy that Jack and Jill toothpaste would consist of is:
Rejuvenating the paste to make it look all new again.
Charge lower prices to liquidate inventory of discontinued products.
Channels that are no longer profitable would be phased out.
Expenditures would be lower and aimed at reinforcing the brand image for
continued products.