Lifebuoy India Case

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1. How is the concept of PLC useful? The concept of PLC is useful because it can be used in order to make decisions which will affect the sales of a product. By recognizing each stage of the PLC, you are able to make decisions in order to extend the life cycle as much as possible. For example, by knowing the difference between the growth stage and maturity stage, a firm can assess market conditions and make strategic moves that will prevent it from entering a decline period. 2. How did Lifebuoy's strategies in the early stages of its PLC enable the brand to become a leader? In the early stages of its PLC, Lifebuoy positioned its brand in the 'health hygiene' platform. There was no substitute product in that platform. As a result, Lifebuoy captured a huge market share in the rural markets of India. When Lifebuoy entered the Indian market, the country was suffering a plague; As a result, the product was perceived as an important househould item to keep the body healthy. This perception remained with consumers for the next century. 3. Analyse the stages of Lifeuoys' PLC during the 20th century. Which factors contribute to moving the brand from one stage to another? Development stage: Initially, the market for Lifebuoy's soap product was “created” as a result of the plague during the mid-1890s and the need for personal hygiene products. Growth stage: A gradual rise in Lifebuoy's sales curve during the development stage is characteristic of a successful new product. Consumer demand increased by the mid-1930s and it maintained high revenues for a few more decades. As such, Lifebuoy entered into its growth stage during this period. Lifebuoy's clever brand positioning and advertising strategies continued to fuel growth. Maturity stage: During the mid-1970s, sales were growing at a much slower pace. The reason for this was because of the increased

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