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Product Life Cycle

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Introduction

Product Life Cycle Businesses decide to introduce a new product when sales when sales of existing products are declining. A new product can increase market share by either appealing to a different age range to its main target or by appealing to everyone because it is new. For example, products such as televisions or computers are constantly changing due to updated technology, therefore newer products are more highly demanded, and therefore it is easier to market to market them. By saying that the product offers newer technology and better designs, the customers are immediately drawn towards it. ...read more.

Middle

If this were to happen, the business would have to consider making staff redundant or declare them selves bankrupt! Every product has its own life cycle, and there are four stages of this life cycle, illustrated on the graph below: A. Research and Development B. Introduction C. Growth D. Maturity E. Decline Point A is the point before the new product is introduced to the market. This is where the Research and Development department does their thorough market research. This helps them gather the needs and wants of the public and whether do create the product or not. ...read more.

Conclusion

Re-create new product (research and development and introduction) The whole process of researching and developing is takes a lot of time, effort, and money, but for most company's, the most vital part to go through. However, you can also replicate an already succesfull product with minor changes so it seems more up to date. Chocoholics are at part E in the first graph with their luxury hand-made chocolates, and have to decide whether they want to re-invent the product, or take it off the market. If chocoholics were to introduce a new product, it would be very complicated, as new machinery would be needed, staff would need to be re-trained and advertising the new product; which all costs money. ...read more.

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