PRODUCT LIFE CYCLE

NIHARIKA CHUGH
BBA4547/09
 What is Product Life Cycle ?
Strategy

PLC The Product Life Cycle

About Company
refers to the succession of
stages a product goes
Bingo

through.
Introduction Stage

Growth Stage
 Product Life Cycle
Strategy

PLC

About Company Product Life Cycle

Bingo

Introduction Stage

Growth Stage
 Case Study
Strategy ITC LIMITED

PLC

About Company

Bingo

Introduction Stage

Growth Stage
 About ITC
Strategy
Corporate Strategies :-
PLC  Developing a portfolio of world class
 Continuous focus on chosen portfolio
About Company

 Benchmark each business

Bingo
 World class & Internationally competitive
Introduction Stage  Diverse skills & Capabilities
 Distributed Leadership
Growth Stage
 ITC Foods Launches Bingo
 Fifth major line of foods business
Strategy
 Innovative and Differentiated
PLC  Array of products in both Potato Chips & Finger Snacks
segment.
About Company
 Fast-moving branded snack market growing 30 % every year

Bingo

Introduction Stage

Growth Stage
Introduction Stage
 Characteristic of PLC - Bingo
 Sales
Strategy  Costs
 Profits
PLC
 Customers
 Competitors
About Company
 Marketing Objectives
 Strategic Product
Bingo
 Price
 Distribution
Introduction Stage
 Advertising
 Sales Promotion
Growth Stage
 Research
Strategy
 Company's in-house research team of eight
people
PLC

 Studying Home Made Snacks e.g.:- Bhel, Gol

About Company
Gappas , Khakra etc.
Bingo  70 per cent of those surveyed confirmed

 Chefs to dish out new and tasty combinations

Introduction Stage

of existing delicacies.
Growth Stage
 Offerings from Bingo
Initial offerings:-
Strategy  Potato Chips
 Finger Snacks segment
PLC
Potato Chips Variants:- (Habits of different parts of the country)

 Masala Flavours
About Company  Salted Flavours
 Tomato Flavours
Bingo
 South inspired

Finger Snacks offerings:- (Unique & Innovative)

Introduction Stage
 Pakoda inspired Live Wires
 Khakra inspired Mad Angles
Growth Stage  Tedhe Medhe
 Advertising
 Bindass Channel
Strategy

 Website
PLC
 Timed around the World Cup

About Company  Television Commercials

 Outdoor Hoardings
Bingo

 Merchandise rack (500- 600 0utlets)

Introduction Stage

Growth Stage
 Radio & Hoardings
Strategy  Youngsters traveling hours

PLC  20 spots a day – Radio One & Radio

About Company
Mirchi

Bingo
 Outdoor Hoardings in Top 30 cities

Introduction Stage

Growth Stage
Growth Stage
 Bingo @ Growth Stage

Strategy
 Eaten up Market Share of Lays in 9 months
 16% market share @ Snack market
PLC
 Now aiming for 25%
About Company  Lays share reduce from 65% to 45%

Bingo
 High Decibel Advertising
 Novelty Factor
Introduction Stage
 Regional Flavors
Growth Stage  Distribution Strength
 Sales Promotion
 Promotional Events
Strategy

 Tie up’s
PLC
 Multi media Campaign

About Company
 Advertising Blitzkrieg

 4-5 per cent higher margin.

Bingo
 The brand also tied-up with the Aero smith rock

Introduction Stage
concert.
 Bingo is using a high-decibel launch campaign strategy.
Growth Stage
 Tele-Marketing Ads
 Five 30 second commercial at same time
Strategy
 Ads dubbed in Hindi

PLC  Better Brand Recall

 O&M
About Company  Focus on Products & Brand Management
 Tag Line focus on combination of offers
Bingo
 Youth Channels e.g :- Star, MTV, Zee etc

Introduction Stage

Growth Stage
 Bingo @Maturity Stage
• They modified the products by adding some
new flavours
• The company has expanded their market to
almost all the cities of india.
• In this stage competitors entered into the
market (lays, kurkure,taka tak,hippo,uncle
chips)
 Marketing Objective
Strategy
 Target is placement of all merchandising units
across the market in a months time
PLC

 Create Identity in a Short Span

About Company
 Offering a wide range
Bingo  Reach every nook & corner

 Distinct Approach ( Innovative &

Introduction Stage

Differentiated products)
Growth Stage
 Sales
 16% Market Share in the snacks industry
Strategy
Costs
PLC
 Manufacturing Facility – Haridwar (Rs 700 crore)

 Offering a higher margin (4% -5%)

About Company
 Future investment of 150 crore
Bingo  Rs 60-70 crore on campaign

Competition
Introduction Stage
 Frito Lays
 Kurkure
Growth Stage  Balaji
 Price
 Priced at par with Frito's
Strategy

 USP -16 variants

PLC
 Priced at Rs. 5/- and Rs. 10/-

About Company

Distribution
Bingo
 Cigarette brands are available at most paan shops

Introduction Stage
 Retail tie-ups, Biyani's Future Group – Big Bazaar
 360-degree approach
Growth Stage
 Profits
 Low Profit ( as compared to other rival products in
Strategy

Branded Packaged Food)

PLC

About Company
Customers
 Type: youthful and innovators
Bingo
 Age Group : 20 – 35

Introduction Stage
 Customer type: Packed-snack-on-the-go
 Category: Impulse buy category
Growth Stage  HORECA (hotels, restaurants and cafes)
 Bingo! It's Frito Lay's loss, ITC's gain

Strategy  PepsiCo's Frito Lay snacks replaced with

PLC ITC's Bingo

 Striking at the small shops

About Company

 Heavy dose of advertising in this year's

Bingo

cricket World Cup

Introduction Stage

Growth Stage
Thank You