Fundamentals of

Product Management
 PRODUCT LIFE CYCLE
AND MANAGEMENT OF
THE MARKETING MIX

• - The process which a product passes

through from birth (development) to
death (withdrawal).

• The changes that may take place in

the health or the fortune of a product
during the period it is on the market.

• This process is classically grouped

into four stages – introduction, growth,
maturity and decline.

1
Example of PLM
3D Televisions: 3D may have been around for a few decades, but only after considerable investment from
broadcasters and technology companies are 3D TVs available for the home, providing a good example of a
product that is in the Introduction Stage.

Blue Ray Players: With advanced technology delivering the very best viewing experience, Blue Ray
equipment is currently enjoying the steady increase in sales that’s typical of the Growth Stage.

DVD Players: Introduced a number of years ago, manufacturers that make DVDs, and the equipment
needed to play them, have established a strong market share. However, they still have to deal with the
challenges from other technologies that are characteristic of the Maturity Stage.

Video Recorders: While it is still possible to purchase VCRs this is a product that is definitely in the Decline
Stage, as it’s become easier and cheaper for consumers to switch to the other, more modern formats.
PRODUCT LINE
EXTENSION
• The concept of Product Line Extension can be defined
as a business strategy where the firm plans to expand
its established product brand name with the new
range of items in the product category.
• The Product Line Extension can be in the form of new
colors, forms, shapes, sizes, flavors, packaging, and
ingredients.
• The main idea and agenda behind the same are to
increase the sales and reach of the already
established product at the market place.
Merits of Product line extension
When the firm comes up with the business strategy of Product Line Extension, it attracts the same line of the target audience who
are looking out for a variety in the product category. The strategy elevates the excellent levels of customer service and overall
satisfaction.

With more number of products in a similar line and type, the brand gets more shelf space in the retail stores. This enhances its
market reach and market share, along with the benefit of brand enhancement.

With the product brand already established in the market and the minds of the consumers, the firm can save its marketing and
promotional expenditure on the Product Line Extension of the same category.

The firm earns a competitive advantage in the market against its contemporary brands as is able to serve the consumers with a wide
array of options. The options can range from flavors, shapes, sizes, price, packaging, and much more.

With the strategy of Product Line Extension, the firm is able to cater to the different segments of the customers that prefer the
product in other variants such as shape, color, flavor, and more.
 Many a time if the firm is not well researched about the market dynamics
and the evolving tastes of the customers, the Product Line Extension can
backfire and affect the sales and brand value of the original product.

Quite a number of times the marketers go overboard on the front of

marketing and promotional expenditure with the Product Line Extension
that adds to the overheads of the firm.

Demerits of
Product line If the Product Line Extension if not very well received by the target
audience, it affects the brand loyalty and value of the original product.

extension Many a time, the unique and exclusive appeal and attributes of the original
product are killed owing to the number of options and alternatives
available.

The competitors of the brand also pull up their socks and come up with the
strategy of their Product Line Extension in order to stay relevant in the
market. And if the competitor’s products range better in terms of features
and attributes, it can affect the sales and profits of the firm.
Vital considerations before jumping into
Product line extensions

Check the growth & Ask your customers Take a look at Have a look at your The product should
progress of your competition finance & available remain exclusive
existing product resources
Thank You