Product Life Cycle : Definition, Example & Stages

CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................1
1) This case highlights the product life cycle concept and how as a market expands and
competition increases the market needs to be segmented with new products and services being
offered and the organisational offerings augmented. In what other additional ways may the
market be segmented?............................................................................................................1
2) How would you develop the service to take into account existing market conditions?....4
3) What service aspects, and additional complimentary service areas, would you develop
given your target market selection (i.e. 24/7, individual personal trainers, spa and sauna
services, etc.)?........................................................................................................................5
4) Consider how relevant technology and social media can be incorporated into this current
service design and explain how this innovation will enable the management of demand for the
Pilates Studio..........................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The following assignment is based upon a case study of gym called Pilates Studio
which is undergoing certain issues owing to which the demand for its services is forecasted to
come down in near future. To counter this, a number of suggestions have been given which can
be taken into consideration by the management of Pilates Studio to enhance the demand for its
offerings.
1) This case highlights the product life cycle concept and how as a market expands and
competition increases the market needs to be segmented with new products and services
being offered and the organisational offerings augmented. In what other additional ways
may the market be segmented?
Market segmentation can be referred to as the activity of division of a business market
or a broad consumer, inclusive of potential and existent customer, in to sub-groups of people
(Gavens and et. al., 2019). Such groups are commonly known as segments and this type of
segmentation is done in accordance with some shared characteristics. At the time of division of
segmentation of any marketplace, companies usually look forward to some common traits, like
common interests, lifestyle, shared need or other such kind of demographic profile. The major
purpose behind execution of segmentation is the identification of high yield market place
segment, which are segments acknowledged to be flourishing and prosperous, having high
potential for growth in upcoming time period. This helps the entity in selecting the most
appropriate market and then providing products and services catering to their needs and
requirements in order to inflate the revenues and profits of business.
A number of ways have been regarded as ways to carry out segmentation of a
marketplace. The companies who are B2B sellers usually segment the marketplace into various
types of nations or businesses (Noyelle, 2019). On the other hand, B2C sellers generally carry
out segmentation of marketplace on the basis of demographics, lifestyles, behaviour etc.
The segmentation of market is usually done by business entities in accordance with STP
approach. This model highlights three key areas, which are largely linked to each other. Each
succeeding stage of this model can not be executed unless the previous stage is successfully
carried out. The first stage of this model is segmentation without the execution of which
targeting and positioning can not be done. Market segmentation tends to assume that various
1