Development of product goes through typical stages during its lifetime. It is broken into five different stages which include the development stage, the introduction stage, the growth stage, the maturity stage and the decline stage. Marketing mix differs in each stage which now includes seven P’s. Marketing mix should always be kept in mind while a product life cycle goes on. Promotion emphasizes product differentiation and this is the only way that the consumers will not switch to the competitors. Marketing mix should be implemented differently in each stage.

The test is all about, product differentiation that adds a unique value to a product and then about its revitalization. A product life cycle of each and every product fits its product marketing mix. Each P’s of marketing mix applicable on every stage of product life cycle varies in every stage of product life cycle and DVD players which are now matured products also have implication of these P’s of marketing mix. Product life cycle constitutes four important stages through which have undergone the product life cycle of DVD players with all the 7 P’s, previously, which were four, of marketing mix and these are applicable on the PLC of DVD players.

Currently DVD players are in the matured stage and their sale has diminished by its successors, blu- ray discs which are resting in the growth stage, just as, the arrival of DVD players had reduced the sales of VCD players in the market. DVD players are not only a physical product but also a service to which all the 7 P’s of marketing mix are applicable and the product life cycle of DVD players fits its marketing mix. Promotion, one of the P’s of marketing mix emphasizing product differentiation along with advertisements, proper packaging that can help DVD players to get renewed in the market.

With the arrival Blu- ray discs, the primary aim of DVD players is to boost its sales and earn maximum profit. There cannot be any empirical study on the PLC of DVD players due to which the sale of this product cannot be clearly predicted but the crucial point of DVD players is that it is not only being a physical good but rather a service shows the implication of the newly introduced 3 P’s which have relevance to the service industries. Just as DVD players replaced VCD players, for now it’s the era of Blu- ray discs to replace DVD players as it is more advanced and succeeding DVD’s by maintaining its position in the growth stage. So, marketing mix should be implemented differently at each stage of PLC of DVD players to maintain its position in the matured stage.

Defining marketing mix:

Marketing mix is often crucial when determining a product or brand’s offer. It includes 7 P’s; previously there were only 4 P’s. The 7 P’s are- Product, Price, Place, Promotion, People, Process and Physical Environment. A product life cycle (PLC) is the typical stages a product goes through just like human beings goes through during his lifetime.

Marketing mix is implemented differently at different stages of PLC. Characteristics for each stage differ and in response to the different needs of the product, the market mix used during these stages differ as well-

· Development Stage:

The product is an idea, which is not for sale, but it is being manufactured. Market mix is in the planning stage, rather than implementing marketing strategies the product producer is researching marketing methods and planning for the product which is to be launched.

· Introduction Stage:

At this stage, the product hits the market; sales are generally low as customers are not aware of the product at this stage. Marketing expenses are very high. So, the marketing mix during this stage of PLC entails strategies to establish a market and create a demand for the product.

· Growth Stage:

Sales increases at this stage as customers become aware of the product, Branding is an important factor of this stage of PLC. Marketing mix differs in this stage from other stages. Marketing the product involves showing customers how the product benefits them over the other product of the competitors, building brand preference.

· Maturity Stage:

As the product gains over its competition the marketing mix during this stage involves efforts to build customer loyalty, special promotions and incentives to customers who might switch to other products of the competitors.

· Decline Stage:

Once a product market is over, it becomes saturated. Marketing mix and marketing efforts decline in this stage. The product does not attract new sales and attract customers who are brand loyal on the basis of the residual reputation of the product.1

Objectives of DVD players with respect to its PLC:

· Presently the aim of the DVD players is to maximize profits and growth to expand their current business operations and increase market share.

· Its aim is “survival”, to survive in the market and look for profits.

· The primary objective of DVD players is improving sales to maximize profit.

· The companies should spend less on advertising and promotion but should also emphasize on product differentiation.

· DVD players are focusing to maintain the current market share.2

The product life cycle fits the product marketing mix and marketing mix is implemented differently at every stage. The analysis of product differentiation adds a unique value to a product.

The scope of the study is to get the first-hand knowledge about the product life cycle affecting marketing mix in India. Every product that a company manufactures goes through product life cycle which forms the scope of study.

The methodology of the study is doctrinal research and the nature of research is explorative research. The stage of the life cycle of a product affects how it is marketed and marketing mix. The need for immediate profit is not a pressure but to create awareness and develop a market.

Characteristics of each stage of PLC:

· A new product progresses through a sequence of stages from introduction to growth, maturity and decline. This sequence is product life cycle (PLC) associated with changes in the marketing situation.

· The firm seeks to build product awareness and develop a market for a product in the introduction stage. The product is launched at this stage and market is developed for the product with advertisement. Building brand awareness and trademark or patent the new product with consideration of pricing strategy. Targeting marketing distribution place or location based on market research.

· The firm seeks to build brand preference and increase market share in the growth stage. Sales increases and requires branding that differentiates the product from other products. Product quality must be good. As product demand grows pricing stabilizes and ensure that the cost/price relationship is valid and the product have the advantage over other competition.

· The strong growth in sales diminishes. Competition appears with similar products. Product differentiation is needed at this stage. This is the maturity stage where market share is to be defended. Small business sales growth starts to slow down. Define and refine what is unique about the product, unique value preposition and strong product differentiation, Pricing may be impacted by competitive activity.

· The firm seeks to maintain the product, possibly rejuvenating it by adding new features at decline stage. Discontinuing the product and liquidating remaining inventory is the basic characteristic of this stage. The product becomes a commodity. Competition is fierce and one can only continue to win if the company is a lowest cost provider.3

Exploring P’s of marketing mix at every stage of product development:

Introduction Stage-

· Pricing-

At this initial stage of a product. Pricing may be low penetration pricing to build market share rapidly or high skim pricing which is skimming pricing strategy means to skim the cream of the market to recover the development costs.

· Product-

At this initial stage, product branding and quality level is established and intellectual property protection such as patents and trademark etc. are obtained. Premium quality packaging is also done.

· Promotion-

It is aimed at innovators and early adopters. Marketing communication seeks to build product awareness and to educate potential consumers about the product. Promotional materials are developed to inform and gain awareness.

· Place-

The distribution channel is based on market research. As sales are low in the initial stage of a product, so market location place should be targeted. It involves getting the product from the product from the manufacturer to the consumer.

· People-

There will most likely be heavy promotional and advertising activity designed to raise awareness of the new product and to seek sales amongst early adopters who like own cutting edge products. Pricing strategies are implemented and accordingly people are attracted.

· Process:

1) Idea validation- looks for the area where needs are not being met by current products.

2) Conceptual design- when an idea has been approved and begins to take shape. Company has studied materials, technology and manufacturing capability and price and style.

3) Specification and design- when the product is nearing release. Final design questions are answered, prototype can be created.

4) Prototype and testing occur when the first version of a product is created and tested by engineers and by customers.

5) Manufacturing ramp- up is the final stage in introduction. Product goes into full production of release (commercialization).

· Physical Evidence:

In service industries, there should be physical evidence that the service was delivered. Physical evidence pertains also to how a business and its products are perceived in marketplace.

Growth Stage:

· Pricing:

Pricing is maintained as the firm enjoys increasing demand with little competition and even follows price elasticity. It is maintained accordingly after implementing either low penetration strategy or skimming strategy.

· Product:

Product quality is maintained in this second stage of PLC and additional features may be added with proper packaging and with support services.

· Place:

The distribution channel in this stage are added as demand increases and customers accept the product whether buying it from a retailer or a wholesaler or through internet etc.4

· Promotion:

Promotion at this stage is aimed at a broader audience as sales rapidly increases with increased market share.

· People:

Promotional activities will tend to focus on expanding the market for the product into new segments. Example- with new flavors or sizes cartons of fruit drinks specifically sized for kids lunch boxes.

· Process:

Sales, discounts, advertising all play an important role in the process. Production increases, lower unit costs, sales momentum³ builds as advertising campaigns target mass media, competition grows, minor changes are made as more feedback is gathered. If the product does not succeed, than evaluating what cost the company can bear and what are its chances of survival.

· Physical evidence:

This can be well understood with an example- Like if we think of fast food, we think of McDonalds and if of sports than Adidas and Nike comes in our mind.

Maturity Stage:

· Pricing-

Pricing may be lower at this stage because of the new competition as market share decreases. Prices are reduced for a product so that consumers should not switch to other competitors.

· Product-

Product features at the maturity stage may be enhanced to differentiate the product from that of competitors so that consumers remain brand loyal and not switch to other product.

· Place-

Distribution becomes more intensive at this stage and incentives may be offred to encourage preference over competing products.

· Promotion

Promotion emphasizes product differentiation. When PLC starts becoming shorter and shorter, the products in mature stage can be brought back into the market with the help of product differentiation.

· People-

a Company producing it needs to reap considerable rewards for the time and money spent developing the product. They should increase the amount of the product used by existing customers or provide differentiated product. Price promotion to attract people who use rival brands.

· Process

Operations should be streamlined, cost efficiencies, sought and hard decisions made. Sales growth slow, defending market share, more promotion, touching price wars and lower prices means lower profits. Then special sales, promotions, cosmetic product changes, defending quality and integrity of the product.

· Physical evidence

After becoming market leaders and have established physical evidence finally the product sales starts shrinking on the maturity stage.5

Decline Stage-

· Pricing

The product in the decline stage can be maintained only if the company manufacturing the product should be the lowest cost provider as PLC of the product at decline stage is about to come to an end.

· Product

Maintaining the product by providing the product with additional features and new uses as the product becomes a commodity.

· Place

The distribution channel for the product comes to an end as consumers usually don’t prefer to buy products at this stage. So, the product sales diminish and retailers or wholesalers etc. can sale the product as a result of residual reputation of the product only.

· Promotion

Product in the decline stage may or may not be renewed through promotion as product’s marketing is withdrawn completely.

· People

Marketing support may be withdrawn completely and sales will entirely be result of product’s residual reputation. For example- Elderly people may go on buying brands that they started using forty or fifty years earlier.

· Process

Downward side in sales, revenue will drop, investment is minimized, product is discontinued and stock is allowed to dwindle to zero, but company sells the rights to supporting the product to another company.

· Physical evidence

Product in the decline stage completely loses its physical evidence as the sales completely diminishes.

Implication of P’s of marketing mix on DVD players-

Price:

The pricing strategy used by DVD players was skimming strategy and Product Line Pricing.6 Goods are high priced and are usually employed to reimburse the cost of investment. DVD players which are brown goods are firstly introduced into the market at a high price and this strategy was used to target early adopters of a product. Early adopters have relatively lower price sensitivity, having higher disposable income. It is employed only for a limited duration to recover investment cost.

Product:

DVD players were a product which had premium quality packaging. Later on, it provided low price and satisfaction guaranteed with different brands or companies and also had different features.

Place:

There were many distribution options for customers to experience the product DVD players. For example- online, mobile etc. Distribution was usually selective and scattered. The distribution option for DVD players were retail and wholesale as purchasing product from wholesaler will give reduced costs so consumers will purchase at a lower price and as DVD players became very popular so retailers were willing to devote shelf- space to this product instead of other new products.DVD players can also be purchased online with different paying options like COD, debit cards etc.

Promotion:

DVD players were a successful product and service so, to promote this product push and pull strategies were implemented in the introduction stage with advertisement but for now DVD players have reached the maturity stage so sales promotion and personal selling are the only promotional activities that can sustain its position.

DVD players- a service, not merely a physical good:

The newly introduced 3 P’s are used when the relevant product is a service and not merely a physical good. DVD players are products and a service.

Process:

Microeconomic demand and supply7 curves depend on differences in relative prices i.e. the price of one good relative to another good or all other goods and services. If the price of DVD movies declines, the price of DVDs had fallen, relative to the prices of VHS movies and consumers switch their purchases from other good to the now cheaper DVDs. The price of DVDs declines qty. purchased increases. Process essentially has inputs, throughputs, outputs and at that time DVDs were advanced technology with data storage that can hold up to 17 GB of information. The techniques used by this product to exploit early stages made use of penetration pricing after skimming pricing.8

People:

People have an important role in service industry. Just as people goes through infancy, childhood, adulthood and old age so do products and brands. In the introduction stage of DVD players, there was heavy promotional and advertising activity to seek sales amongst early adopters. Customer services were given even after sales and then, at the growth stage, its market was expanded into new segments. When it reached the maturity

stage the company needed to reap considerable rewards for the time and money spent.9

Physical evidence/Packaging:

Services are intangible when marketing. However, customers tend to rely on physical uses to help them evaluate the product before they buy so marketers develop physical evidence. DVD players had physical evidence as it was a service and had corporate branding that gave it a unique identity like Toshiba, Santosh i.e. DVD players with different brand names. After branding decisions were made about the shape, color, material, UPC bar code and label of the packaging, installation instructions while packaging and no sticky labels were used in DVD players.10

Successor of DVD player- PLC of blu- ray discs succeeding DVD players:

· Introduction Stage:

Blu- Ray Discs were first introduced to the market on June 2006. There was very limited competition and it was first home entertainment system to offer high definition (HD). During this stage, Blu- Ray was high priced than DVD players and so many consumers bought cheaper DVDs and Blu- Ray suffered losses. Presently, the blu-ray players are positioned in the growth stage.

· Growth Stage:

At this stage, competition begins where Play station- 3 offered platforms that play Blu- Ray disks. Blu- Ray started earning more revenues. In 2008, even Toshiba begun to distribute blu- ray players and consumer awareness about blu- ray players increased to 60%.11

Currently, the Blu- Ray player is in the market growth stage enjoying a steady increase in sales. Meanwhile, the DVD player is now in the market maturity stage where sales are beginning to level off and there is long- run downward pressure on prices. The VCR is relaxing comfortably in the sales decline stage. Any VCR sales are most likely just the replacement sales.¹²

FIGURE- 1. Product life cycle stages

The figure- 113 shows that DVD players are presently at the maturity stage and Blu- ray is succeeding by sustaining its position at the growth stage. This graph depicts the current position of the DVD players as its sale has now become matured with time.

Scope in India- present status of DVD players:

Many consumers probably aren’t aware of the product life cycle stages. Even though they make a conscious decision to switch from one product to another, this is more due to personal taste.

DVD players- Introduced a number of years ago, manufacturers that make DVDs and the equipment needed to play them, have established a strong market share. However, they still have to deal with the challenges from other technologies that are characteristic of maturity stage. Blu- ray discs replaced the DVD players.

Analysis of product differentiation- its implementation on present status of DVD players:

PLC applies to both brand and category of products. Its time period vary from product to product. Product life cycles are becoming shorter day by day as products in mature stages are being renewed by product differentiation.

DVD players are now relaxing at maturity stage with low sales so it needs more and more promotional activities and promotion emphasizes product differentiation. Companies always attempt to maximize the profit and revenues over the entire life cycle of a product, to achieve profit, the introduction of the new product at the proper time are crucial.

If new product is appealing to consume and no tuff competition is out, company charge high prices and earn high profits like in case of DVD players in the introduction stage. Product differentiation is a marketing strategy that can be used by DVD players in the matured phase so that it can be renewed in the market. Also with product differentiation, businesses attempt to make their product unique to stand out from competitors.

· Introduction stage:

Product branding and quality level was done for DVD players which gave it a unique identity against its competitors and with it there was very low competition.

· Growth stage:

Product quality and additional features with support services and brand preferences increased the market share for DVD players. Sales increased and with it arose competition.

· Maturity stage:

This is the stage where DVD players currently stands. In order to sustain its position the features of the DVD players should be enhanced to differentiate the product from that of competitors as competition appears with similar products.

· Decline stage:

If the concept of product differentiation is implemented properly to the DVD players than it can further be prevented from reaching to decline stage.

Comparative study- blu- ray players, DVD players and VCD players-

· Blu- Ray Players:

With advanced technology, delivering the very best viewing experience. Blu- Ray equipments is currently enjoying the steady increase in sales that’s typical of the growth stage.

· DVD players:

Introduced a number of years ago, manufacturers that make DVDs and the equipment needed to play them, have established a strong market share. However, they still have to deal with the challenges from other technologies that are characteristic of maturity stage.

· VCD Players:

While it is still possible to purchase VCRs, this is a product that is definitely in the decline stage, as its become easier and cheaper for consumers to switch to the other, more modern formats and DVDs replaced VCDs.14 Once we go to HD we never look back. DVD Players of yesterday present picture in 480p quality but blu- ray players which are currently very popular boast full high definition 1080p picture quality instantly providing clearer and better picture. Most blu- ray players are also suited for DTS- HD.15

Unlike DVD players many Blu- ray players are internet ready with built-in Wi- Fi. This allows us to access the internet. Blu- ray also provides instant access to media streaming apps such as Netflix, Pandora.

Although blu- ray discs looks similar to DVD players in size, shape but there is huge difference between the two regarding storage capacity, laser technology and player compatibility. And VCDs has already lost their popularity after the arrival of DVDs and Blu- ray discs.

A single DVD can store about 4.7 GB of data whereas single layer blu- ray discs can store approx. 25 GB of data. DVD players uses red laser at 650nm wave length to read DVD discs. And like the name suggests, blu- ray players uses blue laser to read the stored information. The DVD image displayed will not be high definition quality like blu- ray discs.

Graphs depicting the comparative study between blu-ray players, DVD players and VCD players-

FIGURE- 2 Product life cycle of blu- ray players

The figure 2 is a representative graph that depicts the product life cycle of Blu- Ray players which after going through the introduction stage reached the growth stage with increasing sales and competition and yet not reached the maturity or decline stage. Blu- ray players are comparatively purchased more by the customers these days as it provides HD quality pictures and has more advanced technology in- built in it.

FIGURE- 3 Product life cycle of DVD players

The figure 3 is a representative graph that depicts the life cycle of DVD players which had gone through introduction stage and growth stage and now resting at the maturity stage. This product has become matured now with less advanced feature. Only few consumers purchase this product as DVD players have become outdated. Its competition is increased at this product is sold with very less profit margin.

FIGURE- 4 Product life cycle of VCD players

The figure 5 is representative graph that depicts the life cycle of VCD players which had gone through all stages- introduction stage, growth stage, maturity stage and now this product is resting at decline stage. The sale of this product has become saturated and its market share has diminished completely. This product stands nowhere as today’s generation is more exposed to latest and advanced technology. VCD players are about to go obsolete very soon.

Current status of blu- ray players, DVD players and VCD players at different phases of PLC-

· Introduction Stage:

The products blu- ray players, DVD players and VCD players in the introduction stage needed higher investments but lesser profits with minimal competition and the companies tried to induce acceptance, gain initial distribution with promotions which targeted the customers.

· Growth Stage- (Blu- Ray discs):

This is the stage where blu- ray discs currently stands and this product is already successfully launched with increased demand and distribution and intensified competition and the product also got the support services.

· Maturity Stage- (DVD Players):

This is the stage where DVD players currently stand and now the USP16 of this product has become less attractive with increased competition. There is very little growth for this product and it is implementing the penetration pricing with lower profit margins. The major focus is now at extending the life cycle and market share through product differentiation.

· Decline Stage- (VCD Players):

This is the stage where VCD Players currently stands whose market is completely saturated and is about to go obsolete. Sales and profits have declined and company has become more cost conscious with lots of resources getting blocked in rejuvenating dead products.

Limitation of PLC- unpredictable sales of DVD players:

PLC has no empirical support and it is not fruitful in special cases. Different products have different properties so their life cycle also varies. DVD player goes through product life cycle and its cycle absolutely varies from different products but there cannot be any empirical support as it is not a best tool to predict the sales. Sometimes managerial decisions affect the life of products in this case PLC does not play any role.17

Product life cycles are becoming shorter as there is ever increasing competition. While a manufacturer faced competition only from another manufacturer in the same city but now they have to face competition on the other side of the globe, the reason behind this is the globalization and FDIs. Blu- ray is not only dominating the Indian market but also in the overseas or international market.

Many products in mature industries are revitalized by product differentiation. But the exception is that even though PLC’s shrink; the operating life of many products is becoming longer for example- branded cars. Research time is lacking and this was one of the constraints while conducting the research. The real information cannot be fully recovered due to vast range of information involved in the research. Shortage of resources was one of the constraints while conducting the research.

CONCLUSION:

The problem with the DVD players which is now a matured product can be dissolved to some extent with the help of product differentiation and it is not just a product or a good but rather a service to which all the P’s of marketing mix are applicable. The newly introduced 3 P’s are applied on a product which is not only a physical good but a service. The competition with similar products has arisen, only a differentiated product can survive. A DVD player has passed through the initial and growth stage of PLC and now stands at the maturity stage.

Life of DVD players can be extended by using marketing techniques or promotional activities such as advertising, proper packaging or reduction of price along with product differentiation which will then enhance its sales. PLC of DVD players fits the marketing mix as it is crucial for it to survive in the market.

Product differentiation is a marketing strategy which seeks to highlight differences between the product and this strategy is needed by DVD players. Product differentiation can add unique value to DVD players or set a USP of this good which can then become more attractive and can attract more customers thus, enhancing the sale of DVD players to some extent, hence with this, further dropping of the sales of DVD players can be prevented.

LIST OF ABBREVIATIONS:

1. DVD- Digital Video Disk

2. VCD- Video Compact Disk

3. VCR- Video Cassette Recorder

4. PLC- Product Life Cycle

5. USP- Unique Selling Point

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Received on 31.01.2017 Modified on 22.02.2017

Asian J. Management; 2017; 8(2):155-162.

DOI: 10.5958/2321-5763.2017.00025.7