Product Life Cycle Stages Examples

2465 Words Nov 29th, 2008 10 Pages
Product Life Cycle stages Examples

Decline: Hindustan Motors Ambassador
HM decides to increase sales of their age old classic model – Ambassador in the country. They are planning to sell 12,500 units this year with the introduction of their new fuel efficient engine. This engine will be compliant with the Bharat Stage 2 & 3 emission norms. It’s probably delivering the mileage of 16 km/l against a 11 km/l mileage from the existing diesel engine. Hindustan Motors plans to invest Rs 6 crores in upgrading engines to build them BS-3 compliant.The number of changes will be made on the new model. HM also has introduced the buy-back scheme where buyers can exchange their old models of Ambassador with the new one at the discount of Rs 35K.
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Till 2001, it had 65% of sales as taxicabs.
MUL’s entry 1981
Amby – long time for delivery
Too much maintenance required
Sounds while driving
Lost its market share to Maruti 800
By 2000, its market share reduced so much that it was included in the “others” segment.
Maruti 50.37
Hyundai 19.17
Tata Motors 17.19
Honda 5.33
Others 5.73
Reasons:
Unable to create barriers for potential new entrants
Focussed only on one segment till 1997, Maruti brought out cas for various segments till then
Unwilling to change
Design not aerodynamic
Competitors
Personal Ownership: Santro, WagonR, Alto
Taxicab: Indica

Maturity

Colgate toothpaste
Colgate loses some of its sparkle in the toothpaste market
In terms of volumes, its share has declined from 38% in 2005-06 to 37% in 2006-07 and 36.9% in 2007-08
Mumbai: Colgate, the flagship brand ofColgate-Palmolive (India) Ltd, is losing ground in the toothpaste market with its market share falling marginally in terms of volumes in an expanding market. However, it appears to have retained its market share in terms of value.
A shopper at a grocery store in Mumbai. Colgate’s market share has stayed stagnant over two years, 2006-07 and 2007-08
According to market research firmAC Nielsen, the market share of Colgate (inlcuidng its variants) has remained stagnant at 41.2% over two years, 2006-07 and 2007-08, even as the market has grown 14% a year to Rs2,263 crore in the same period. In terms of volumes, its share has
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