Forgot Product Life Cycle
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For g et the Pr oduct Life Cycle Concept! - Har var d Business Review
Harvard Bus ines s Publis hing: For Educators | For Corporate Buyers | Vis it Harvard Bus ines s School
January 1976
Forget the Product Life Cycle Concept! by Narim an K. Dhalla and Sonia Yus peh
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Suppos e a brand is ac c eptable to c ons umers but has a few bad y ears bec aus e of other fac tors —for ins tanc e, poor advertis ing, delis ting by a major c hain, or entry of a “me-too” c ompetitive produc t bac k ed by mas s ive s ampling. Ins tead of
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think ing in terms of c orrec tive meas ures , management begins to feel that its brand has entered a dec lining s tage. It therefore withdraws funds from the promotion budget to financ e R&D on new items . The nex t y ear the brand does even wors e, panic inc reas es , and new produc ts are has tily launc hed without proper tes ting.
Not s urpris ingly , mos t of the new produc ts fail. Thus management has talk ed its elf into a dec line by rely ing s olely on the PLC c onc ept.
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The annals of bus ines s are full of c as es of onc e s trong and pros perous brands that have died—if not with a bang, at leas t with a whimper—bec aus e top management wore PLC blinders . A good ex ample is the c as e of Ipana. This toothpas te was mark eted by a leading pac k aged-goods c ompany until 1968, when it was abandoned in favor of new brands . In early 1969, two Minnes ota bus ines s men pic k ed up the Ipana name, c onc oc ted a new formula, but left the pac k age unc hanged.
W ith hardly any promotion, the s uppos edly petrified demand for Ipana turned into $250,000 of s ales in the firs t s even months of operation. In 1973, a s urvey c onduc ted by the Target Group Index s howed that, des pite poor dis tribution, the toothpas te was s till being us ed by 1,520,000 adults .
Cons idering the limited res ourc
For g et the Pr oduct Life Cycle Concept! - Har var d Business Review
Harvard Bus ines s Publis hing: For Educators | For Corporate Buyers | Vis it Harvard Bus ines s School
January 1976
Forget the Product Life Cycle Concept! by Narim an K. Dhalla and Sonia Yus peh
Comments (0)
Suppos e a brand is ac c eptable to c ons umers but has a few bad y ears bec aus e of other fac tors —for ins tanc e, poor advertis ing, delis ting by a major c hain, or entry of a “me-too” c ompetitive produc t bac k ed by mas s ive s ampling. Ins tead of
RELATED
ALSO AVAILABLE
Buy PDF
think ing in terms of c orrec tive meas ures , management begins to feel that its brand has entered a dec lining s tage. It therefore withdraws funds from the promotion budget to financ e R&D on new items . The nex t y ear the brand does even wors e, panic inc reas es , and new produc ts are has tily launc hed without proper tes ting.
Not s urpris ingly , mos t of the new produc ts fail. Thus management has talk ed its elf into a dec line by rely ing s olely on the PLC c onc ept.
TOP MAGAZINE ARTICLES
24 HOURS
7 DAYS
30 DAYS
The annals of bus ines s are full of c as es of onc e s trong and pros perous brands that have died—if not with a bang, at leas t with a whimper—bec aus e top management wore PLC blinders . A good ex ample is the c as e of Ipana. This toothpas te was mark eted by a leading pac k aged-goods c ompany until 1968, when it was abandoned in favor of new brands . In early 1969, two Minnes ota bus ines s men pic k ed up the Ipana name, c onc oc ted a new formula, but left the pac k age unc hanged.
W ith hardly any promotion, the s uppos edly petrified demand for Ipana turned into $250,000 of s ales in the firs t s even months of operation. In 1973, a s urvey c onduc ted by the Target Group Index s howed that, des pite poor dis tribution, the toothpas te was s till being us ed by 1,520,000 adults .
Cons idering the limited res ourc