The Product life cycle is an inevitable situation. We can
assure ourselves that almost every company has experienced it. One may be at
the start, mid, or end of the Product life cycle. But interestingly we have to keep
in mind that these inevitable situations do have way out. The time horizon can
be manipulated if we have absolutely correct approaches to leverage. It's quite
daunting for lots of firms in a competitive market where the competition to stay
at the top is very high. Here in this article review, I will try to give you steps
to follow to realize if you are under threat of the Product life cycle. Also, I
will mention the steps to follow to overpass those and how to be on track.
STEP 1: REALIZATION OF PRODUCT LIFE CYCLE:
The bell curve which depicts the product life
cycle is the first thing we need to ponder and understand very well. For our
easiness, let us consider marketable product toothpaste, and let’s name it: Denti-fresh. The usual bell curve that
defines this product will be somewhat as below figure depicts.
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| Product Life Cycle Model |
As you can see the product sales with respect to time have a exponential growth till a point and eventually starts to decline. Well, this is something very inevitable. The graph is something we as an entrepreneur should have information. This is very critical in realizing the behavior of the market and planning accordingly.
STEP 2: POSITIONING IN START, MID OR TOP
After the realization of the product life cycle we need to
focus on the position we fall under. Usually for an ease we will consider three
positioning in the PLC that eventually manifest the outcome.
STEP 3: CASE_IF WE ARE AT THE TOP (REVERSE
POSITIONING)
The first being the case what if the product we launched,
Denti-fresh is at the top of bell curve. We know we have to face inevitable
fall or decline. Also we have fierce competition. Is there a way back from
this? Can we stale our PLC curve at here? These are the question we have to ask
ourselves. The right question will direct us to right answers. Here in this
case scenario we have to use something called Reverse Positioning. This
positioning will help us somehow skip the fall until we hit another being to
the top scenario. Consider we have the maximum sales for a year and we have
started declining as time runs forward. At this moment, if we have innovate new
formula for our Denti-fresh product line and get it tested from doctors. The brilliant
review revives the production scale as it is marketed as customer is expecting
it toothpaste to perform. Here, we have initiated another product life cycle and
growth. The competitors are slow to respond. We eventually increase the share
of our market and the sales and profit maximized until the falls looms us. This
approach of positioning is Reverse Positioning.
STEP 4: CASE_IF WE ARE AT THE MID (BREAKAWAY
POSITONING)
The second being the case what if the product we launched,
Denti-fresh is at the mid of bell curve. We know we have to face inevitable uncertainty.
Is there a way to prepare ourselves in a growing competition, when we have to win
in marginal amount? These are the question we have to ask ourselves. As we
mentioned the right question will direct us to right answers. Here in this case
scenario we have to use something called Breakaway Positioning. This
positioning will help us somehow alter the journey we were anticipating and get
in track into new journey. Consider we have the tight one on one competition with
our rival. Now in this situation we bring an idea to distinguish our product as
per age group, the packaging for kid is different compare to adult. The child
packaging comes with small toys of dolls and cars. This will eventually lead to
marketing strategy being correctly used for maximum outflow of the toothpaste
in market. Well the sales of Denti-fresh will sky rocketed when we are uncertain
about the market behavior. This approach of positioning is Breakaway
Positioning
STEP 5: CASE_IF WE ARE AT THE START (STEALTH
POSITIONING)
The last but not the least being the case what if the product
we launched, Denti-fresh is at the start of bell curve. We know we have to face
inevitable question ‘what’s next?’ Well answer is in the positioning approach which
is known as Reverse Positioning. This positioning will help us to maneuver ourselves
in tenure of start. The education to the consumer about the product will help
us focus in inclusion of new category. And this is the first thing we need to
do when we are at the start. Suppose in our case of Denti-fresh we can firstly
educate consumers about the organic way of keeping teeth healthy. Next slowly
implying on how our toothpaste is most organic thing in the market. This realization
on the market can be most effective way to overcome the latent market
segmentation. This will eventually direct the sales in expected number. This
approach of positioning is Stealth positioning
Hope the above steps will be handy in-case we are stuck in a
paradigm of Product Life Cycle. As mentioned first is realization of PLC, then
optimization of the position we are situated in PLC model and finally opting
one out of three positioning method.
