logo

Individual Products or Services Assignment PDF

   

Added on  2021-05-31

7 Pages1989 Words295 Views
 | 
 | 
 | 
Assess the life-cycle stage of the products or services in a company’s portfolio and evaluatewhether innovation, adaptation or renovation are needed for the individual products orservices.1-Testing the production life stages of products or products in (the selected company),Product life cycle concept :Product life cycle management is an essential part of all effective marketing strategies. If you areaware of where your product is in its life cycle, you can market it in a way that will maximize its sales.Product Life Cycle Stages – PLCThere are five key stages of the product life cycle:1)Pre-launch – no sales and profit are made because the product is still in development.2) Introduction – initial sales are made to innovators, consumers who enjoy trying new products, but these are insufficient to recuperate development costs3)Growth – sales being to increase rapidly as the product gains popularity among the early majority. It is at this stage that profits are first generated.4)Maturity – this is the longest stage and generates the majority of a product’s sales and profits from the late majority. To ‘milk’ the product for as much profit as possible, extension strategies are often implemented to pro-long the maturity stage.5)Decline – eventually all products stop selling, such as VHS tapes. As expected, sales begin to decline until the product is no longer profitable. At each stage, marketers should adapt their marketing strategies to the external changes in the market place. Let’s take a look at how PepsiCo have used the product life cycle to successful grow Pepsi into one ofthe most consumed drinks in the world.
Individual Products or Services Assignment PDF_1

Assess the life-cycle stage of the products or services in a company’s portfolio and evaluatewhether innovation, adaptation or renovation are needed for the individual products orservices.Technologist with drawing – PLCOn a company of your choiceProduct Life Cycle of Pepsi:1)Pre-launch – the 1890s In 1898, pharmacist Caleb Brad ham developed ‘Brads Drink’, a formula designed aid digestion. After strong interest from consumers in his pharmacy, Brad renames the drink ‘Pepsi-Cola’ and purchases the trademark ‘Pep Cola’ for $100. The origins of Pepsi are very similar to that of Lucozade, which was also first produced for medicinal purposes. Although $100 does not appear much, adjusted for inflation that amountof money in the 19th Century is equivalent to $2516.34 in 2014. This highlights the difficulties companies have in the pre-launch phases with surviving periods of negative cash-flow, large research costs and development expenditure.2)Introduction – 1902
Individual Products or Services Assignment PDF_2

Assess the life-cycle stage of the products or services in a company’s portfolio and evaluatewhether innovation, adaptation or renovation are needed for the individual products orservices.Brad began selling Pepsi-Cola and achieved sales of 7,968 gallons of syrup in the first year.Objectives: Brad aimed to generate initial awareness and trial of his product, and far exceeded his targets! Product: Only a basic product was launched – Pepsi-Cola was initially sold even without bottles. Instead the product was sold through soda fountains located in Brad’s pharmacies.Price: Initially a simple cost-plus pricing strategy was used. It is likely that Pepsi-Cola started with a skimming strategy, to quickly recuperate start-up costs.Place: A highly selective distribution is initially recommended, and this is evident with PepsiCola only launching in Brad’s pharmacies.Advertising: To generate awareness, a celebrity endorsement with race-car driver Barney Oldfield (above) was utilized. Sales-promotion: Pepsi-Cola was not launched with any promotions. However, if promotions are used at this stage they should aim to encourage consumers to trial the product.3)Growth – 1930s-1970s After bankruptcy and then becoming acquired by Loft Inc. Pepsi-Cola’s sales sky-rocketed in the great depression. Consumers were attracted by the value-for-money competitive positioning: 5 cents would buy consumers 12 ounces of Pepsi-Cola, but only 6 ounces of Coca-Cola.Objectives: During growth, gaining market share is critical. Hence, Pepsi-Cola was marketed aggressively against Coca-Cola to encourage consumers to defect.Product: As the market becomes increasingly competitive it is important to continually improve the product. Hence, Pepsi-Cola now came in bottles, rather than just soda fountains.Price: To support the aim of gaining market share, the low price penetration strategy was one of the key reasons why the brand grew massively in this time period. Place: An extensive distribution network is needed to support rapid sales growth; therefore exclusivity to pharmacies ended and the product became a mainstream consumer good. Advertising: It is vital to capture the early majority stage, requiring that advertising was designed to effectively reach a mass audience. For example, Radio was selected as a medium because of its low cost-per reach – click here to listen to an ad from the 1930s!
Individual Products or Services Assignment PDF_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Marketing Mix of Coca-Cola
|14
|4349
|135

Developing a PLC for two competing products in a same industry
|5
|699
|53

The Long-Term Impact of the BP Oil Spill: A Review and Recommendations
|12
|2229
|739

Product Life Cycle and Pricing Strategy in Marketing Management
|16
|1074
|199

Product Life Cycle, Effective Communication, Customer Value Hierarchy, Modes of Entry into Foreign Market
|6
|1056
|76

Advantages and Disadvantages of PLC
|14
|455
|16