MKT/421 - Product Life Cycle Application for 7-Eleven Milkshakes

This report provides a comprehensive analysis of the product life cycle (PLC), focusing on its application to a new milkshake product at 7-Eleven. The report begins with an introduction to the PLC concept, defining its stages (introduction, growth, maturity, and decline) and explaining its importance to marketing managers. It outlines the advantages and disadvantages of utilizing the PLC framework, emphasizing its role in planning, market understanding, and decision-making. The report then describes the selected company (7-Eleven) and the new product (milkshake machine with three flavors), detailing the target market and marketing strategies. The core of the report applies the PLC to the new product, outlining specific marketing actions for each stage. Finally, it discusses the implications of ignoring the PLC, highlighting the potential negative consequences for product success. The report uses references to support its analysis and provide context for the concepts discussed.

APPLY: THE PRODUCT
LIFE CYCLE
Dustin Larson
MKT/421
12/16/2019
Michael Gaither

TABLE OF CONTENTS
 Introduction
 PLC definition and 4 stages
 Why PLC is important to marketing managers
 Advantages and Disadvantages of PLC to marketing managers
 Describing the selected company and the new product
 Target market for that product
 How PLC will be used on new product
 Implications for ignoring PLC
 References

INTRODUCTION

THE PRODUCT LIFE CYCLE
(PLC)
 PLC is the process of a new product from when it is introduced in the market till it is removed
from the market.
 PLC has five stages with its own unique characteristics.
1. Development stage
2. Introducing stage
3. Growing stage
4. Maturity stage
5. Declining stage

WHY IS PLC IMPORTANT TO
MARKETING MANAGERS
 Reduce market entry costs
 Shows the starting point
 Open door for new products
 Extend lifetime of product
 Marketing
 Pricing and Promotions

ADVANTAGES OF PLC FOR
MARKETING MANAGERS
 Helps in planning
 Helps to understand the market
 Helps in faster decision making
 Helps in next stage of PLC
 Easy sales forecasting
 Competitive advantage

DISADVANTAGES OF PLC FOR
MARKETING MANAGERS
 Low application in some market
 Depends on the market condition
 Time consuming in certain stages
 Too rigid in making strategies

SELECTED COMPANY AND NEW
PRODUCT
 Milk Shake machine at every 7Eleven
 3 flavors to choose from: Chocolate, Vanilla or Strawberry

TARGET MARKET AND HOW THE
PRODUCT WILL BE PRESENTED TO
TARGET MARKET
 Target market is children and adults
 Give free samples to every 7Eleven customer
 Commercials
 Discounts

4 PLC STAGES OF NEW
PRODUCT
1: INTRODUCTION
 Set low price and discounts
 Advertisement
2: Growth
 Increase price
 Keep eye on data and competetion

4 PLC STAGES FOR OUR NEW
PRODUCT CONTINUED..
3: MATURITY
 Offer new mix and match flavors
 See recent trends and adapt accordingly
 Improve distribution and promotional efficiency
 Look for new markets

4 PLC STAGES FOR OUR NEW
PRODUCT CONTINUED…
4: DECLINE
 Decline in sales
 Introduce new sizes and new deals
 Ask customers for feedback and adapt
 Discontinue if no longer profitable