Q. Explain the concept of
Product Life Cycle (PLC). Pickup any product/brand of your choice in the recent
past where the marketing mix element have changed during the different stages
of the PLC. List out all the changes that have occurred during its PLC.
Introduction
to Product Life Cycle (PLC)
The Product Life
Cycle (PLC) is a model that represents the stages a product goes
through from its introduction to the market until its eventual decline. The PLC
helps businesses understand and anticipate the changes in product demand,
competition, pricing, and marketing strategies over time. It is typically
divided into four key stages:
1. Introduction Stage: This is when a product is first launched into the
market. Sales are low, and the product is still gaining awareness. Marketing
efforts are focused on educating consumers about the product, its features, and
benefits.
2. Growth Stage: In this phase, the product gains acceptance in the
market, and sales begin to rise significantly. The brand's market share
expands, and competition increases. Marketing focuses on differentiating the
product and building customer loyalty.
3. Maturity Stage: During this stage, the product reaches its peak in
terms of market share and sales volume. Competition is intense, and the market
becomes saturated. Businesses focus on defending market share and maintaining
customer loyalty through differentiation and extended product features.
4. Decline Stage: Eventually, the product experiences a drop in
demand, sales decrease, and newer innovations replace the product. Marketing
efforts reduce, and businesses may phase out the product or modify it to extend
its life.
The marketing mix, which includes the 4Ps—Product, Price, Place, and
Promotion—plays a crucial role in adapting to the changes that occur in each
stage of the PLC. Let's now dive into a practical example of how these changes
manifest over time.
Case Study:
Apple iPhone and its Marketing Mix Changes During PLC Stages
Apple’s iPhone
provides an excellent example of a product that has gone through all stages of
the PLC, and its marketing mix has evolved considerably during this process.
Let's explore how the marketing mix elements—product, price, place, and
promotion—have changed as the iPhone moved through the introduction, growth,
maturity, and decline stages.
1.
Introduction Stage (2007-2008)
When Apple first introduced the iPhone in 2007, the
market was dominated by mobile phones with physical keypads, and smartphones
were not as widespread as they are today. The iPhone introduced a
groundbreaking touch-screen interface and the concept of mobile apps, which
were novel and innovative at the time.
Product Changes:
- Innovation: The first
iPhone was revolutionary in its design. It combined an iPod, a phone, and
an internet device into one product, offering a new, sleek user experience
with a touch screen. The product’s main focus was simplicity and elegance,
with an intuitive user interface.
- Limited Features: At the
time, the iPhone didn’t have features that became standard in later
models, such as a front-facing camera or the ability to send MMS messages.
Apple kept the product streamlined and focused on its core features—making
calls, browsing the internet, and listening to music.
Price Changes:
- Premium Pricing: Apple initially
positioned the iPhone as a premium product, with prices ranging from $499
to $599 for the different models. The high price was justified by the
innovative technology and the brand’s positioning as a premium consumer
electronics company.
Place (Distribution):
- Exclusive Distribution: In the
introduction phase, Apple had a limited distribution strategy, with
exclusive partnerships with AT&T (in the United States) for network
services. This helped create a sense of exclusivity and limited
availability, driving interest in the product.
Promotion Changes:
- Heavy Focus on Innovation: Apple’s
promotional strategy was centered around the product’s uniqueness and the
innovation behind its features. The iPhone’s launch was marked by a major
advertising campaign highlighting its revolutionary design and
capabilities. Apple used a mix of media, including television ads, online
campaigns, and high-profile product launches.
- Celebrity Endorsements: Apple used
high-profile individuals like Steve Jobs, who presented the product to the
world with a memorable keynote, positioning the iPhone as a product for
trendsetters and early adopters.
2. Growth
Stage (2009-2012)
By 2009, the iPhone was beginning to gain significant
market share. Competitors like Samsung and HTC started entering the smartphone
market, and consumers became increasingly aware of the benefits of smartphones.
The market for smartphones grew rapidly, and Apple’s marketing strategies
adapted to these changes.
Product Changes:
- Product Enhancements: Apple
introduced regular updates with new iPhone models (e.g., iPhone 3G, iPhone
4). The product became faster, sleeker, and featured better cameras,
improved processors, and greater storage capacity. Apple introduced the
App Store in 2008, revolutionizing mobile software distribution.
- New Features: The iPhone 4 introduced the Retina Display and a front-facing camera, both of which were significant upgrades that enhanced user experience and paved the way for FaceTime video calls.
Price Changes:
- Price Reduction: As
competitors entered the market, Apple slightly reduced the price of older
models while maintaining a premium pricing strategy for newer releases.
Apple introduced more affordable versions, such as the iPhone 4S, to
attract a broader audience while still maintaining its high-end
positioning.
Place
(Distribution):
- Expansion of
Distribution Channels: Apple expanded its distribution
significantly during this phase. It increased its presence in global
markets and expanded partnerships with additional carriers (e.g., Verizon
in the United States, and others in Europe and Asia).
- Apple Stores and Online
Presence:
Apple also built its global retail network, offering a more personalized
customer experience. The online Apple Store became a critical channel for
selling and distributing iPhones.
Promotion
Changes:
- Aggressive Marketing and
Brand Loyalty: Apple focused on building brand loyalty with
existing customers while attracting new ones. It used an aspirational
marketing strategy to position the iPhone as a product that offers not
just utility, but status. Promotional campaigns highlighted the iPhone’s
ease of use, seamless integration with other Apple products, and the App
Store’s vast selection of apps.
- Shift to Social Media and
Word-of-Mouth: Apple started leveraging word-of-mouth and
social media marketing to create buzz around new iPhone launches.
Influencers and tech bloggers became an important part of Apple’s
promotional strategy, with iPhone enthusiasts sharing their experiences on
various platforms.
3. Maturity
Stage (2013-Present)
By the time Apple reached the maturity stage with the
iPhone, it had already dominated the smartphone market. Competitors like
Samsung, Google, and Huawei had started offering similar devices, leading to an
increasingly saturated market. In this stage, Apple had to adjust its marketing
strategies to maintain its market share.
Product
Changes:
- Regular Iterations: Apple
continues to introduce incremental updates with each new iPhone model
(e.g., iPhone 5, iPhone 6, iPhone 7). The focus shifted to improvements in
performance, camera quality, and battery life. The iPhone X, introduced in
2017, was a significant change with its edge-to-edge display, Face ID, and
the removal of the home button.
- Customization and Variants: Apple
introduced various models at different price points, including the
budget-friendly iPhone SE and the larger iPhone Plus variants. This
allowed Apple to cater to a broader range of consumers with differing
preferences and budgets.
Price Changes:
- Price Segmentation: Apple
adjusted its pricing strategy to appeal to both premium consumers and
those looking for more affordable options. The iPhone SE and the iPhone 11
models allowed customers to purchase a more affordable iPhone, while
high-end models like the iPhone 12 Pro were marketed at a premium price.
- Bundle Offers: Apple
introduced bundle offers (e.g., Apple One services) to increase the
perceived value of purchasing an iPhone and increase revenue from
services.
Place
(Distribution):
- Wider Availability: The iPhone
was now available in almost every market around the world, with Apple
Stores in major cities and distribution through a range of carriers and
online channels. Apple’s retail stores became more focused on customer
experience, offering tech support through the Genius Bar and facilitating
product repairs and exchanges.
- Increased Focus on E-commerce: Apple
shifted more focus to its online store and e-commerce platforms to compete
with other tech giants and retailers. Online sales allowed Apple to reach
a larger, global audience and offer more personalized marketing.
Promotion
Changes:
- Focus on
Ecosystem Integration: Apple’s promotion focused on the
integration of its products and services, such as iCloud, Apple Music, and
the Apple Watch, emphasizing the seamless ecosystem that iPhone users
could enjoy.
- Increased
Emphasis on Sustainability: As environmental concerns grew,
Apple began to highlight its efforts in sustainability, emphasizing the
recyclability of iPhone components and reducing the carbon footprint of
production and distribution. This appealed to environmentally conscious
consumers.
- Celebrity
Endorsements and Influencer Marketing: Apple has
worked with influencers and high-profile celebrities, using them to
endorse iPhones and create aspirational appeal for the product.
Promotional events like the annual Apple Keynote became major events in
the tech world, creating anticipation and excitement around new releases.
0 comments:
Note: Only a member of this blog may post a comment.