yes kashif, i agree to ur point. there are many other factor but this is one of it, but no doubt..... wid proper mrkt understanding n good strategy considering the need of the time , it can b achieved.
By
dilip gour, OWNER, GOUR TECHNOLOGIES
| 03 13 2010 11:07:42 +0000
Factors to use in deciding to use advertising: a. volume of sales – as sales increase, the percentage of dollars spent on advertising decreases as the public has been reached. b. competitive environment and profit margin – if there is a lot of competition within the category (i.e., soft drinks, beers) then a higher advertising budget is required (with beer, the companies not invest in events rather than ads) c. philosophy of advertising – with some products a moving picture is needed (food) d. new product introductions – require heavy ad support e. maintaining leadership position within the category
By
ravindra shrivastava, Information Systems(MIS)-Manager, iifs pvt ltd
| 03 13 2010 10:55:13 +0000
Yes an AD can increase the life cycle of product as it plays a major role in creating a mind share and a continuous advertisement can bring a new life in the product but apart from that few changes has to be made in the product such as new packing, new design etc. In this case we can take an example of few products which are making a come back once again such as Nirma, Videocon, Rin etc. These example itself speaks whether an ads can increase the lifecylce of a product or not.
By
Javed Akhtar, Sr. Executive - Logistics, Keventer Agro Limited
| 03 12 2010 10:06:27 +0000
Dear Mr.Suryakumar sir, I would like to place here that it is acceptable that R&D needs money. It may please be noted that certain products have no life cycle at all{ cosmetics, consumer goods etc } which are treated as luxury items to meet the life style of people. Regarding the products of Burnol, Vaseline, and etc., the concept of life cycle cannot be applied since they are medicines that may or may not suit according to the physical conditions of consumers. Hence product life cycle has its significance with the products that involves capital investment. examples: Cars, Generators, Transformers, Electrical goods & appliances, wires & cables, Machines with high technology, and etc.,The manufacturers of these products are having well planned strategy with addition and deletion of certain features to give enhancement of life to the products to sustain the competition as well as sales decline . Even today, reputed and well placed products of MNCs and Indian companies are being advertised in TV channels, News papers, Journals and Magazines with a view to keep their presence in the market, despite good sales performance. Why they are giving ads... they know the life cycle and their competitors with similar products and want to have their market share and they do not want to take away from them by their competitors. It may also please be noted that certain companies increase market spending during recession and giving advertisements as a means of re-investment in its Brands. Of course it is not possible for small companies but companies with financial strength. So they can alter the duration of a brand life cycle.
By
NATTERAJA R. ARIKRISHNAN, AREA SALES MANGER, UNIFLEX CABLES LTD
| 03 10 2010 18:36:24 +0000
No doubt or no one can deny that certain products have become obsolete because of the technological changes. They have become obsolete because of the reason of not taking the corrective actions to reinstate them in the market.In the present scenario of competitive environment, the fittest can survive. To sustain the competition the products are required to change to suit the needs of the customers.Under the life cycle of a product it is called rejuvenation. When a person is suffering from illness, he has to meet the doctor to recover from his sufferings. Similarly when a product encounter the stage of maturity or decline, it needs to be modified with special features like quality, durability, better performance which are similar to that of the new entrants in the market or the competitors. How the customers have come to know these changes, only through advertisements, face to face explanation, and advertisements in the leading news papers and magazines. Nobody is stopping an Indian brand to have R&D support. When we talk about target vs. achievement, it is significant to realize the fact that what is the input will be the output. To achieve the target, the minimum required amount of input should be provided. In the product life cycle, in the initial stage the product needs to develop a market for it which requires sales promotional activities to build product awareness and to educate the customers about the product. In the growth stage it requires to build brand preference and increase market share. In the maturity stage, the sales growth declines. Now the company has to be alert to seek the remedial measures to stop the unwanted things. The company has to find out the reasons or make a analysis whether it is due to reasons emanated from the company itself or due to the entrance of competitors with similar products. It should be noted that development is a continuous process to face the competitors with product differentiation. Here how the product development with improved version reaches the customers/loyal customers/target customers... it is through ads of any mode.Ads are the form of communication through which the company is talking to their customers.
By
NATTERAJA R. ARIKRISHNAN, AREA SALES MANGER, UNIFLEX CABLES LTD
| 03 09 2010 18:30:05 +0000
Ads can increase the life cycle of the products.Today all products and services have certain type of life cycle similar to any livings and there is no exception.Hence the PLC has been linked with changes in the marketing situation and impacting the marketing strategy and marketing mix.The products are passing through various stages like Introduction, Growth, Maturity, and Decline. But the declining stage is very crucial for any company. This is because this stage will affect the profitability of the company.Under the circumstances the company has to think whether to maintain the product or withdraw it from the market. Since an increase in profits is the major target of all companies. Therefore, any company should understand that the PLC has not only emerged due to the time factor but also from the company's policies related to the marketing techniques, strategy and other methodology. So the proper understanding of PLC will help the companies to realize the corrective actions to be taken. Here comes the advertising as a tool to enhance its products position in the market. When the products face the declining or saturation stage, it needs rejuvenation or injecting new blood. That is improving the products with better quality and special features comparing with the competitors.If necessary little bit changes in design and also in packing to attract. [putting old wine in new bottle ] The extra additions can be informed to all their customers through advertising, medias, papers, magazines, and also through e-mails.Advertising is a form of communication intended to persuade its viewers, readers, or listeners or customers. Spending on ads in order to convince the customers with added values of their products will be of injecting new blood to the products. But it is to be noted that PLC is of little value in the majority of FMCG market. So a well designed marketing strategy can alter the shape and duration of a brand life cycle
By
NATTERAJA R. ARIKRISHNAN, AREA SALES MANGER, UNIFLEX CABLES LTD
| 03 06 2010 11:55:59 +0000
Ads can increase the life cycle of the products.Today all products and services have certain type of life cycle similar to any livings and there is no exception.Hence the PLC has been linked with changes in the marketing situation and impacting the marketing strategy and marketing mix.The products are passing through various stages like Introduction, Growth, Maturity, and Decline. But the declining stage is very crucial for any company. This is because this stage will affect the profitability of the company.Under the circumstances the company has to think whether to maintain the product or withdraw it from the market. Since an increase in profits is the major target of all companies. Therefore, any company should understand that the PLC has not only emerged due to the time factor but also from the company's policies related to the marketing techniques, strategy and other methodology. So the proper understanding of PLC will help the companies to realize the corrective actions to be taken. Here comes the advertising as a tool to enhance its products position in the market. When the products face the declining or saturation stage, it needs rejuvenation or injecting new blood. That is improving the products with better quality and special features comparing with the competitors.If necessary little bit changes in design and also in packing to attract. [putting old wine in new bottle ] The extra additions can be informed to all their customers through advertising, medias, papers, magazines, and also through e-mails.Advertising is a form of communication intended to persuade its viewers, readers, or listeners or customers. Spending on ads in order to convince the customers with added values of their products will be of injecting new blood to the products. But it is to be noted that PLC is of little value in the majority of FMCG market. So a well designed marketing strategy can alter the shape and duration of a brand life cycle.
By
NATTERAJA R. ARIKRISHNAN, AREA SALES MANGER, UNIFLEX CABLES LTD
| 03 05 2010 18:50:27 +0000
Consumer products like washing soap(Sunlight,Tata`s 501 Bar) have died because of the advent of new products like RIN and not only because of PLC.Products like POND`s Talc,COLGATE PASTE,BRITANNIA `S MILK BIKIS with a change in name are surviving and continue to be Brand Leaders for decades fighting stiff competition. Products do not die because of PLC alone .It is because of a combination of factors like upgradation in lifestyle,invention of advanced product technology,distribution,wrong pricing strategy,quality complaints etc. Advertisement alone does not help a product to sell and it is only one among the 4 Ps.but advertisement can definitely prolong any Product`s life cycle to reasonably longer period which can only be quantified taking into a/c various factors like quality,available alternative,distribution,pricing etc. Brands like Horlicks,Lux,Lifebuoy,Amrutanjan, are solid examples for the argument.These and similar Brands have stood the test of time for decades together by making various changes in the Product,Packaging, and advertisement strategies confirming that Advertisements can definitely prolong PLC of Products.
By
s.baalu , Consultant, XYZ LTD
| 03 05 2010 13:23:43 +0000
they do increase the life cycle.. cos if u consider the FMCG products... new consumers are coming into the target sector every day....( children gettin older may want to know more abt AXE).... it goes on... just that the ads shud be more of a striking and relevant one... accordin to the time
By
Varun , Ideator
| 03 04 2010 13:11:27 +0000
PLC could be understood as a single traditional graph or as a function of numerous PLC for a product. Ad play a vital role in increasing the product life cycle focusing on attribute enhancement,repositioning etc. It could be used for putting a product in a maturity stage to the growth curve and thereby creating a new PLC for the product at that stage.eg Cococola,Horlicks ads over periods are classic examples for the same.
By
Dipankar Chattaraj, Senior Executive - Ad Marketing & Circulation, ABP Pvt Ltd.
| 03 03 2010 05:28:41 +0000
Thanks God FOR PLC! It at-least sanctifies the Strategy part in advertising, otherwise everything would be a wayward approach. Hey Jayant, another topic for U, How Many Oranges and Apples can you fit in your Umbrella?
By
Shiuli Mukherji, Head Strategy Plan- , Region SEA
| 03 03 2010 03:15:06 +0000
Its not just ad that increases the sales but the quality of product also increases the sales as time passes. People must be satisfied with the quality, quantity and price of the product and if the company maintain its quality then its customer will advertise the same to others and sales will remain increasing.
By
Sharad Kiyal, Financial Planning Advisor, Aviva Life Insurance
| 03 02 2010 18:14:14 +0000
hi Jayanth, i agree with your views on this topic.even today so many old products are still in our memory just by the way it is advertised and the impact it has created in us.for eg. NIRMA detergent powder,LIZZAT papad etc.,some innovative changes in advertising pattern from time to time will add some values.
By
jairaj shyam prasad, Production Manager, BOSCH Ltd
| 03 02 2010 14:45:39 +0000
Absolutely, Ads help in Re-Inventing & Re-Positioning the Product according to the changing market scenario(if product is evolving with the times). Then it also provides a new Life to the Product.
By
Kashif Billal, Design Manager, Fashion Designer
| 03 02 2010 14:39:42 +0000
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NATTERAJA R. ARIKRISHNAN Sir, R&D requires money and technological advancement in which we are lagging behind say in case of cosmetics and FMCG. All the new products with path breaking ingredients are by MNCs. Even in India its their Indian operation which is launching the brands. Could you please give an example of a product that has succeeded by doing advertising in the decline stage? It would be of great interest to me to know this brand. To my knowledge today Burnol is not growing even after doing advertising again and again, after refocusing it as a general antiseptic cream. Why is Kaloree1 not seen after one year of launch? Why did Livon Silky Hues fail? Vaseline has become a skin care brand so its no more seen as petroleum jelly. But to change a perception that brand is known for,takes concentrated effort of communicating not only through advertising, but through PR, word of mouth, and all the touch points that the potential consumer is exposed to. By doing advertising one cannot change the destiny of a brand there are lot of market factors that need to be considered.
By
Suryakumar Sharma, Consultant
| 03 10 2010 06:10:49 +0000
In reality very few product follow the cycle. Most product dies at the introduction stage only, and it is quite difficult to tell which stage the product is in. Advertising is the only medium of communication of what brand can deliver. Today in this global world various factors like mergers, acquisitions, govt. polices, technological advancement plays a strong roll in product survival
By
K Satish Kumar, Promotion and MArketing , Twinings Pvt. Ltd.
| 03 09 2010 11:41:07 +0000
Today the market is full of products that have become obsolete because of technological changes – manual typewriter, electronic typewriter, pagers etc. There are newspapers and magazines like Illustrated weekly of India, Mirror, Caravan, Jansatta Gujarati etc., there are airlines like Eastwest airlines, Modiluft etc., these brands are no more in existence today. Some just die, or some get merged or get taken over like, Air Deccan, Times Bank, Centurion Bank of Punjab, Lord Krishna Bank. The companies that have taken over these brands have become stronger because their combined consumer base has made it big. The consumers of these brands get a new experience from the merged entity. Advertisements can only create awareness and spell out the benefits that the consumer can seek by using the product. It is up to the brand to deliver on the promise that is being attached to it. Sometimes a brand does not reach its maturity stage. A cosmetic brand has to keep itself abreast with the changing scenario across the globe. New formulations get introduced abroad at regular intervals. These formulations get introduced in Indian markets within a few months or the grey market delivers it in days. So, an Indian cosmetic brand does not stand a chance in front of MNC brands that have the R&D support of its parent company. A brand when it reaches maturity it has to reinvent itself, by changing with the consumer preferences, so that it gets a new lease of life. Advertisements can help in giving information on new product usages when the product is at the growth or maturity stage. This can increase the life of a brand – if it delivers on the new promise and the consumer feels the need for the new usage. Thus advertisement is only a medium to communicate the benefits that a brand can deliver. Increasing the brands life totally depends on how the brand matches up to the consumer’s tastes and preferences.
By
Suryakumar Sharma, Consultant
| 03 09 2010 05:28:51 +0000
There is an cycle for sales. Awareness --> Interest --> Consideration ---> Trial ---> Purchase and Advertising creates only awareness regarding the product to the consumers and nothing else. To increase the life cycle of any product technology plays an major role..
By
Jayanth Kumar, Assistant Manager - Operations, Beam Telecom
| 03 03 2010 08:27:45 +0000
Jayant Sir, I rally dont agree for the relation of Advertisemnets on Lfe cycle of Product...... PLC is part of Companies Strategy and is being derived from Market Forces or External Environment and nothing to do with advertisements.... on the contrary Advertisements Strategy is designed according to PLC and the Phase of PLC the product is going thru on Graph.... Ads per say can halp to Increase sales and promotions of Product and expenditures are based on Phase in which your product is in PLC graph..... Basic of Ads is to communicate to the Target Customers abt the Products, Benefits and features... and Not the Incresing the PLC.... So, I feel its Individual Organisation Strategy to use Advertisement as catalyst for Increasing Sales or replacing the product ..... Putting up an example: Hero Honda Splendor was on the Higher demand graph ( Growth Stage) and Ads would have increased the sales of the Product but it was withdrawn early from the Market irrespective of PLC.... and I dont feel If Organisation decides to withdraw Product then they Focus more on Advertisements for Increasing the PLC..... Up to certain Extent I feel Ads can Help product to be In Market for a Short spam & achieve basic sales and does not help for longer time.... S, ads can help to Re launch and reposition the product but its Companies decision for the same... and advertisement as an TOOL can be used for achieving the Said Objective....
By
Sampanna Shastry, Deputy Manager- Marketing & Sales, Arani Power Systems Ltd
| 03 03 2010 04:23:02 +0000
In my opinion ad plays little less importance role during the decline stage of a PLC however non-death of a product depends more on ownership of a product rather than advertisement. As we see there are different ownerships during various stages of a PLC. Initially it is entrepreneur who introduces a product in the market afterwards venture capitalist provides growth to the product, and then at maturity stage it becomes public ownership (ltd. co.) but most critical situation arises during the decline stage, at this point in order to protect the product from dying company should sell it to an appropriate owner who can align the product with its present business & achieves economic of scale and make some modification to provide new life to the product. If would like to know more about best ownership then Please visit my blog article “Who is the best owner of a business” http://deepakagrawalblog.wordpress.com/2010/01/04/who-is-ths-best-owner-of-a-business/
By
Deepak Agrawal, Consultant, Independent Consultant
| 03 02 2010 15:36:01 +0000
I think more than investing on Ads while the product is on decline,its will help if the product is reinvented to suite current market requirement.Marico's good old parachute being reinvented as parachute lite is a good example for this.
By
Amit Kumar, Design Engineer, Bharat Heavy Electricals Limited
| 03 02 2010 14:44:49 +0000
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