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Question
AB Visions Ltd. want to introduce a new variety of reading glasses where the vision can be adjusted according to the user's requirement. Explain the first two stages in the life cycle of this product.
Solution
- Introduction Stage: During this stage, a product is introduced in the market. Since the product is of new variety so competition is virtually absent, market is limited and prices are relatively high. As sales are low and promotion expenses are high, profits are usually absent. AB Vision Ltd. will inform the market about the existence and features of the product. This stage is also very risky because a high percentage of new products fail during this period. Effective strategies like introductory offer, money-back guarantee, removing technical and other deficiencies etc., may be employed.
- Growth Stage: This stage is characterised by increased competition, larger sales and price falls. In this stage, sales grow rapidly. The firm expands sales by increasing market share in the existing markets and by entry into new markets. Therefore, profits grow rapidly. AB Vision Ltd. should shift its promotional focus from "buy my product to buy my brand." In this stage, AB Vision Ltd. may adopt the strategies like heavy advertising, expanding distribution channels and keeping the price at competitive levels.
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- Explain the stage of the Company's Product Life Cycle mentioned in the paragraph with the help of a diagram.
- Name the service to be offered by the Company in the next phase. Explain any two characteristics of Services.
- Suggest any two modern ways of marketing the concept of a product. Explain.
Explain the abandonment stage of the product life cycle.
Explain the strategies to be adopted during the introduction stage of Product Life Cycle.
What is the product life cycle?
