1. Product Lifecycle (PLC) By the end of today you should understand: The underlying basis for the PLC The nature of customers and competitors at various stages of the PLC The marketing objectives associated with various stages of the PLC

2. Product Lifecycle Time Product Development Stage Introduction Profits Sales GrowthMaturityDecline Losses/ Investments ($) Sales and Profits ($) Sales and Profits Over the Product’s Life From Inception to Demise

3. How New: The Argument for Being First to Market Higher Market Share Market Control Market Positioning of your Brand If you win you win big –Platform for other products –Huge Margins –Barriers to entry

4. How New: The Argument Against Being First 47% of market pioneers fail The mean market share of pioneers is 10% High risk since you have to establish the market Potential for low product quality

5. How New: Being an Early Entrant Lower Failure Rate –Market established –Understanding of pioneer mistakes –Lower resources expended Enter during the early growth phase

6. What makes an early entrant successful? A vision of the mass market Managerial persistence yielding small, incremental innovations in design, manufacturing and marketing Financial Commitment Relentless Innovation –Willingness to Cannibalize –Constant focus on Improvement –Resistance to Bureaucracy

7. Quick think: What are the Lessons for Pioneers?

8. Product Lifecycle Time Product Development Stage Introduction Profits Sales GrowthMaturityDecline Losses/ Investments ($) Sales and Profits ($) Sales and Profits Over the Product’s Life From Inception to Demise