Assignment Product Life Cycle Essay

Each fruit will defend a life cycle. Using examples, illustrate each defend in the carre iv Life Cycle outlining the thinkable challenges and strategies which may be employed to parent the sales and profitability of the fruit.What is a crossing?A point of intersection is anything that washbasin be byered to a market for attention, acquisition, single-valued function, or consumption and that might fulfill the customer wants or needfully. A product is more than just a tangible goods, it is a service (haircuts, home repairs etc) or idea. However, in selling product is not just looked at as something that is tangible, but it support for communicating with the targeted audience on matters such as packaging, branding, highlighting the product tangible benefits, the massaging of the customers ego as to why they should have a finical product. yield can be viewed at terzetto levels, such as Core growth it addresses what the grease ones palmser is really buying, the echt Product which features characteristic such as quality, brand, design etc., and the Augmented Product it is the additional consumer services and benefits that are wee-wee virtually the core and literal product, which includes things as the after sale service, installation, warranty etc.A Product can in like manner be divided in two primary(prenominal) classification based on the types of consumer that used them. These classifications are Consumer Products which are bought by final consumers for personal, and Industrial products which are those purchased for further surgerying or for use in the return of other goods and services. For example, flour that is used as an chemical element in the making of pastry like bun, bread etc.The Product Life CycleThe Product Life Cycle (PLC) is a utilizable tool employed by marketers to know and determining at what coif a product is in its life. Most Product Life-Cycle curves are represent as bell-shaped (See figure below).The produ ct life cycle has quaternion (4) very clearly defined stages, each with its own characteristics that mean assorted things for business that are trying to manage the life cycle of their particular products.1. cosmos Stage This stage of the cycle could be the most(prenominal) overpriced for a resoundr launching a revolutionary-sprung(prenominal) product. It is a achievement of slow sales growth as the product is introduced in the market. lucre are non-existent because of the heavy expenses of product introduction, although it will be increasing as the product moves on to the growth stage.2. Growth Stage The growth stage is typically characterized by a period of rapid market espousal and substantial profit improvement. strong growth in sales and remuneration, and because the come with can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for the company to invest more money in the promotional activity to increase the dominance of this growth stage.3. Maturity Stage A slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits stabilize or diminish because of increased competition. During this stage the plan of the shaper is now to maintain the market allocate they have built up by consider any product modifications or improvements to the production process which might give them a competitive advantage. During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.4. Decline Stage gross sales show a downward drift and profits erode. While this decli ne may be inevitable, the downward drift and profit erosion perchance due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it) or because the consumers are switching to a different type of product.The idea of the product life cycle has been around for some time, and it is an important principle manufacturers need to understand in prescribe to make aprofit and stay in business. However, the key to sure-fire manufacturing is not just to understand the product life cycle, but to proactively managing products passim their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle. Let us now look at the possible challenges and strategies for each stages of the product life-cycle.Marketing Strategies Introduction StageThe first of the four product life cycle stages is the Introduction Stage, which a novel product is first distributed and made available f or purchase. Any business that is launching a new product must decide when to enter the market and needs to appreciate that this initial stage could require significant investment, increasing awareness of the product through effective marketing and promoting, and also low price strategies maybe employed to attract customers and give the new product the vanquish chance of achieving products success. For example, a cell phone manufacturer with new technology may introduce a cell phone with basic features at reduced prices in hopes of gaining carve ups of new customers.Challenges of the Introduction StageSmall or no market When a new product is launched, there is typically no market for it, or if a market does exist it is likely to be very small. Naturally this federal agency that sales are going to be low to start off with. There will be occasions where a great new product or fantastic marketing campaign will create such a buzz that sales take off straight person away, but these are generally special cases, and it often takes time and perspiration before most products achieve this kind of momentum.High costs in truth few products are created without some research and development, and once they are created, many another(prenominal) manufacturers will need to invest in marketing and promotion in order to achieve the kind of demand that will make their new product a success. Both of these can cost a lot of money, and in the case of some markets these costs could run into many millions of dollars. Losses, non Profits With all the costs of getting a new product to market, most companies will see negative profits for part of the sign Stage of the product life cycle, although the amount and duration of these negative profits does differ fromone market to another. Some manufacturers could start showing a profit quite quickly, while for companies in other sectors it could take years.