Multi-Purpose Basking Seat Product Life Cycle
Final Project Part 3: Multi-Purpose Basking Seat Product Life Cycle
Invention and testing stage
In this stage, which is basically already in progress, the product ideation is put into fruition and developed into a product that can intermittently be tested in the market a finished product. Since the product t is basically a development based on an already available or existing company product, the product will not undergo so much experimentation in production hence there is expectation of reduced costs of product launch that relate experimental production.
Another stage in the availing of the multi-purpose basking seat is the standardization stage where processes are standardized and the whole product is given specific standard objectives and goals which must be achieved (‘Product Life Cycle -‘, 2014). This will happen when the basking seat has become firstly established in the marketplace. Therefore, the following model will be applicable for the Jada Multi-Purpose Basking seat with respect to its product life-Cycle.
Introduction Phase
At this stage, the new product will be availed in the market for the first time so that prospective customers hear about it for the first time. During this phase, the marketing department will be an extremely busy place. It shall be responsible for ensuring that more prospective customers are reached through various means of advertising and promotion. Since this new technological development is not readily available in the market and it is expected that product imitation lag will favor the company’s objective of recouping costs as early as possible the price of the model will be set at 10% premium above premium basking seats. This stage is expected to take between 6 months and 1 year.
Growth Phase
Based on the price setting the company expects to adopt, it is expected that soon after the product has been introduced into the market, the profits alongside sales will start rising allowing the product image and placement in the market to reach a level where it rapidly grows and returns profits (Schwedelson, 2014). Still with reference to the product imitation theory, since products generally take specific time in the market before they are imitated by other competitors, it is at this stage that the company will make sure that Jada Multi-Purpose Basking Seat is availed in as many stores as possible across the country and overseas. This phase is expected to take about 2 years.
Maturity Phase
Since it is always expected that success of a product in the market brings increased competition, and that it takes time to imitate and develop the product at hand, the demand for the seat will reach a level where it is neither increasing in sales volume or marginal profit. Since this stage is associated with increased competition from competitors, Milberg (2010) advices that a company should concentrate on boosting product features that are likely to increase the product image inn the market. These features include boosting customer care, having after-sales services and market the product differentiating features. This phase is expected to last no more than 6 months, after which decline stage shall set in.
Decline Stage
As new competitors come into the picture and new products brought in, it is expected that demand for the Jada Multi-Purpose Basking seat will slowly start waning. At this stage, the company will have three options (Suttle, 2014). First, the company will consider maintaining the product. Secondly, it will also have the option of selling it at considerably discounted prices. Lastly, the third option will be to discontinue the product. The most feasible option will be to sell at reduced prices since this will help the company to maintain a competitive image in the market, produce at reduced costs of production and tap on new markets.
Reference
Milberg, W. (2010). A Product Line Life Cycle Model of Intra-industry Trade. Eastern Economic Journal, 389–397.
Product Life Cycle -. (2014). Wright State University. Retrieved 17 April 2014, from http://www.wright.edu/~tdung/product_cycle.htm
Schwedelson, R. (2014). Worldata. Worldata.com. Retrieved 17 April 2014, from http://www.worldata.com/wdnet6/articles/chasm_marketing_the_revised_technology_adoption_life_cycle.htm
Suttle, R. (2014). Examples of Product Life Cycle Phases. Small Business – Chron.com. Retrieved 17 April 2014, from http://smallbusiness.chron.com/examples-product-life-cycle-phases-13722.html
