Product life cycle and its stages Essay

In today’s world, where market is unpredictable, strategies play crucial role in defending a firm’s product position. â€Å"The main reason why companies must continually develop new products is because products have life cycle†, (Bittel, 1980). Just as operation managers must be prepared to develop new products, they must also be prepared to develop strategies for both new and existing products. First and foremost, before proceeding into the product life cycle strategies, lets define what a product life cycle is. According to Griffin and Ebert (2002), a product life cycle is a series of stages through which it passes during its profit -producing life. Depending on the product’s ability to attract and keep customers over time, a product life cycle may be a matter of months, years, or even decades. Anyway, there are four phases that every product undergoes in a market since it was produced and launched to its out-of market position. They are the introductor y, growth, maturity and decline phases. Below follows the figure of a product life cycle and all phases’ detailed descriptions shall be described later. Also, considerations must be given to how far the product is along the product life cycle. A new concept / product just entering the product life cycle may require intensive distribution to start with to launch it on to the market. As it becomes more established, perhaps the after sales-service will play a more important role which leads to a more selective distribution, with only those dealers that are able to offer the necessary standard of after sales-service being allowed to sell the product. In simpler words, in every phase of a product life cycle, a product should undergo different, suitable strategy in order to stay competitive in the ever changing market. Below follows the product life cycle stages along with their definitions and beneficial strategies†¦ Introductory Stage: According to Stevenson (1999), the introduction stage begins when a product  reaches the market place. When an item is first introduced, it may be treated with curiosity by the buyers. Demand is generally low as buyers are not yet familiar with that item. This often leads to the drop of the product’s price. Therefore, along with time, production and design improvements, many new products became more reliable, less costly, and also the increase in awareness in buyers lads to the increase in demand. Also, according to Griffin and Ebert (2002), during this stage, marketers focus on making their target markets aware of the products and their benefits. Also, during this stage, the particular product is represented with innovation (diffusion of innovative curve), product development (Ansoff Growth Matrix) and problem children (Boston Consulting Group). Among the common characteristics, according to Smith et al – 1997 are: – new products; – low sales; – low market share; – Specific type of customers willing to buy new products. During this phase, as compared to the other phases, profits are negative or low because of low sales and high distribution and promotional expenses. Promotional expenditures are high as the company is eager to inform customers’ about the product’s availability and get them to try it. Since the market is not ready for new products at this stage, the firm focuses on selling such items to those who are the readiest to buy. A company that wishes to be a market leader for its product must choose to launch a strategy that is consistent with the intended product positioning. The company, when deciding on which strategy to implement for the product’s long-term, life and will have to continuously formulate new pricing, promotion and other marketing strategies. Growth Stage: It is the second stage of product life cycle process. Only if the new product satisfies the market’s demand and need, it will enter this stage. According to Heizer and Render (2001), in the growth phase, product design has begun to stabilize, and effective forecasting of capacity requirements is necessary. Adding capacity or enhancing existing capacity to accommodate the increase in product demand may be necessary. Also, customers who have tried the product earlier may remain loyal. In the face of such opportunity, new competitors will start entering the market and they will introduce new product features and hence, expanding the market, leaving the product’s price constant or fall slightly. Here, a company, in order to stay competitive in the market, should keep on promoting its product. In addition, profits start to increase. The firm has several strategies to stay in the rapid growing market as long as possible. Also, the firm improves the product quality, adds more distribution channels, changing the advertising theme – from promoting the product to the market to reminding the market on the availability of the product as well as to increase awareness. The firm also lowers the price in order to attract more buyers. During this stage, usually firms that have successfully passed their product’s introduction stage have high market share and are highly profitable. On the whole, as said by Smith et al – 1997, this phase is represented by: – sales and profits growth; – more widespread usage; – development of the market; – high market share; – Increasing competition. Maturity Stage: The third stage for a product to go. As stated by Pride et al, (1988), sales are still increasing at the beginning of the maturity stage, but the rate of increase has slowed. Later in this stage, the sales curve peaks and begins to decline. Many products maturity stages lasted longer than the previous stages. Industry profits decline throughout this stage. During this stage, sales growth starts to slow down. Hence, the firm as well as its market competitors starts lowering down their prices, increases advertising and sales promotions. Also, the intense market led weaker competitors to quit. Only those strong enough will be able to precede the competition. A company should consider a different strategy when its product cines ti maturity, either by redesigning the market or its product. Modifying market is when the company tries to increase consumption if the current product. The currently matured product can also be redesigned its package or style. It is an effective way of strengthening a firm’s market share. Consumers may also be encouraged to use the product more often or in new ways. Pricing strategies are flexible during this stage, such as markdowns pr price incentives. Marketers may offer incentives and services to declare offering such matured products, especially from competitors. Sales promotions and aggressive personal selling can e effective during this period, when competition may require large promotional expenditures. On the whole, just as adopted from Smith et al (1997), this phase is represented by: – market maturity and a slow-down in sales growth’ – conversion of late majority of customers, and – trying to increase market penetration and share. Decline Stage: The final stage of the product life cycle. According to Lancaster and Jobber (1994), it is when sales begin to fall and already slim profit margins are depressed even further. Customers have begun to become bored with the product and are looking forward to newer, latest products. Dealers begin to de-stock the product in anticipation of reduced sales. Here, sales and profits sank lower, due to various reasons such as advancement in technology, shifts in consumer tastes or intense competitions. Such factors have forced many companies to quit the market and for the other remaining companies, they may have to redesign their strategies to stay longer in the market by raising the price to cover cists, re price to maintain market share, or lower the price to reduce inventory. The firm can also cut down or tighten the product’s advertising and promotional budget so it will be easier for the company to lower down the price. In addition, the company can also â€Å"downsize† its market and focuses on smaller segment as well as their trade channels. In other words, distribution of the declining product will be narrowed to te most profitable existing market. Also, the product will not be highly promoted, although advertising and promotions may be used to slow down the decline. Instead, the firm may even decide to drop the product entirely at the end. Just like the above three phases, this stage is also represented by: – declining sales and profits; – rationalism in the marketplace through mergers, acquisitions and take-over; – some products will be milked for the profits; – often products may need to be harvested; and – in a few cases, product extensions can be developed. Detecting Maturity and Decline: â€Å"The need in strategy development is to detect changes in the trend of  industry sales, to detect when the product life cycle will enter a new phase†, (Asker, 1984). In other word, it is very essential for a firm to view and analyze all market factors involved when its product’s growth phase of the product life cycle changes to a flat maturity phase and when the maturity phase changes into a decline phase. Below are some factors that supply as market indicators that serve as an aid for a firm in detecting its product maturity and decline†¦ – Price pressures caused by overcapacity and the lack of product differentiation; – As the product matures. Buyers have become familiar with the related product and hence, they are unwilling to pay finest price for the product in order to obtain brand security; – Technology advancement and substitute products may lead to the decline of a product. A suitable example for this case is the black and white television sets which due to technological development have lead to the production of color televisions – a definite unpredictable effect on sales of black and white television sets; – When the number of potential first time buyers for a particular product decreases, the market along with the company sales and profits happen to decline; – The market is fully penetrated and there are no sources of growth from existing and new users; and – Existing customers may start to be disinterested in the product and are probably looking forward to switch brands. Actually a product life cycle is conceptually simple yet powerful. However, it is not easily applied. The stages described above are not easily forecasted or predicted or even easily determined. Furthermore, it is difficult to determine and analyze the product definition and finally, even  if the stages in the life cycle are determined, the strategy implications are not always obvious. Therefore, on the whole, I would like to conclude that a company should be aware of the life cycle stages of each product it is responsible for. The company should also predict on how long the product is expected to linger in that stage. Such thinking is very important for setting up strategies such as let say, if the product is expected to remain the maturity stage for a long time; a replacement product might be introduced later in the maturity stage. On the other hand, if the maturity stage is expected to be short, however, a new product should be introduced much earlier.

Of mice and men: a pessimistic story Essay

The story is set during the Great Depression, a time of poverty, homelessness and pain in the United States. With impending war in the air, a job would have been a prized thing. Each character in the story lives a life that is full of hopes and dreams, which are coupled with the knowledge that they can never be realised; George’s ‘Holy Grail’ is to his own farm, which he knows he can never have as long as Lennie is present to hinder his successes. Right at the beginning of the story, we learn that George and Lennie have already had to flee from their previous job in a town called Weed since Lennie would not let go of a girl’s dress. George has to look after Lennie as though he were an infant or a pet; Lennie almost has obliviousness to the world around him. Thus George, like a mother who is bound to her child, has no prospects apart from his devotion to Lennie even though he constantly hinders George with his unending string of ‘bad things’ Similarly Curley’s wife also had a dream, she wanted to be in the movies but had that chance taken from her by her mother. Curley’s wife has been forced to exchanges a life of glitz, glamour and fame for one of poverty, constraint, anonymity and a marriage in which she is unhappy. Curley’s wife still fantasises about the possibility of being in a movie, even though that moment has long gone. Crooks wishes he had the same respect his father had when he was a landowner, when he is talking to Lennie he says: â€Å"If I say something, why it’s just a nigger sayin’ it. â€Å"; Crooks craves his voice to be heard, for people to recognise him as a person and not just a ‘nigger’. To Crooks, it must have seemed like his one dream would never materialize. Moreover, the story portrays each character as the ‘Common Man’ who will always be relatively anonymous and powerless, even though dreams are made and plans are prepared, Steinbeck sets each characters position and makes sure that I t never does and never can change. A lonely and antisocial air haunts all of the characters all appear suspicious of George and Lennie’s friendship and none of them appear to have a good relationship with their ‘fellow man’. Even the name of the place in which the story is set, Soledad, is Spanish meaning loneliness or lonely place. Curley does not have a good relationship with his wife: â€Å"I don’ like Curley, he ain’t a nice fella'†, she continually wanders about the ranch, seeking some kind of familiarity; Curley himself is always one step behind whenever he is searching for her. It seems as though no one is safe from the solitude that engulfs them all, not even in the institute of marriage. Crooks is underlined as an outsider because of the segregation that exists in the bunkhouses, his anti social actions are fuelled by his seemingly utter contempt and hatred of friendships and people behaving amicably toward each other. He avoids contact with other people and will even go as far as to avoid it. He has effectively stated, ‘this is my space, keep out of it’ Crooks emphasises his will for solitude by tormenting Lennie and asking him what he would do if George left him. Crooks revels in his torment by frightening Lennie onto the threshold of isolation, something for which, George and Lennie have unique resilience. Even George eventually succumbs to the atmosphere of loneliness and frequently plays Solitaire whenever Lennie isn’t around. Also, no one in the story seems to be allowed the human comfort of his own possessions, except Crooks, who substitutes friends for his belongings. Candy is denied his dog, his only true companion, Curley deprived of his wife and George who is continually refused ‘the good life’ of a more fixed home and continuity in life. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE John Steinbeck section.

Healthy food on the go chain companies at start up level Research Proposal

Healthy food on the go chain companies at start up level - Research Proposal Example Although the customer lost the case, it entailed negative publicity about MacDonald’s image causing serious damage that took time and huge amounts to repair. For some time, the company experienced drop in sales. In the past, fast food chains and restaurants continue to add healthier supplements to their recipes with success and sometimes with big misses. MacDonald’s for instance, flopped with its introduction of low-fat beef burger dubbed the McLean. Pizza on the other hand, failed with the addition of lower-fat pizza toppings in the Hut. Success started emerging with new entrants in the food industry such as EAT and Burger King started grilling chicken with much success. The company labeled the grilled chicken, BK Broiler now referred to as Tendergrill. People find it challenging to shop for healthy foods produced responsibly. Sometimes the labels are confusing and the lists of ingredients are complex with few directions on government regulations. It is challenging to people to identify true foods for families because the environment provides a tricky situation in most cases. Some fast food chains and restaurants take the initiative to provide reliably healthy foods that give priority to the health of their clients, the environment that they produce foods in, and producers. This is a family-owned coffee-roasting fast food located in the Pacific Northwest. The fast food offers sustainably and fairly produced foods and drinks to customers. The products benefit the consumers, the environment, as well as to the suppliers, a position taken by farmers. The company operates on the mission of supporting social equity and environmental sustainability using organic, trade, and shade-grown coffee. The health of the products offered by Grounds for Change restaurant is certified organic (Pinto, 2010, p. 42). Food materials come from farmers emphasizing on using

Diversity Exercise Essay Example | Topics and Well Written Essays - 500 words

Diversity Exercise - Essay Example While I watched the movie I believe that I would not bring myself to do most of the cruel things that people did in the movie. I would not have the courage to harm my fellow countryman. I had mixed emotions such as sadness for the citizens of Rwanda who were made to fight each other, and anger for the way the police treated them and for those who killed others. Looking at the Tutsi who were the minority, and were chased from their homes, killed and tortured, I thought they had every right to retaliate even though they were the minority. I learnt that there is the need for care when handling people around you, whether a stranger or a familiar person. Simon Birch is based on a young boy born with a growth disability. From watching the movie, I learnt that self belief is important and everything that happens happens for a reason. Looking at the character of Simon Birch, he made me realize that am sympathetic but also realistic by how he still managed to enjoy his early life by being funny, going swimming, and playing baseball. The movie made me believe that there is God. Initially, I thought that most disabled people are sad, hopeless and cannot do anything to help themselves and the people around them. However, this changed after watching the movie ans saw how Simon birch once saved children from a sinking bus. That made me look at the disabled people different, as people who can also do amazing things. The movie made me respect the disabled, while interacting with them give them credit and believe in them. Companies should give equal opportunities to individuals concentrating on their merit and not their race, tribe, nationality, religion or condition. In the United States, there are 36 million people with disabilities representing 12% of the civilian non-institutionalized population. 34% of disabled citizens in the U.S are working, their median earnings are approximately $18,865 compared to the able

Texting While Driving Research Paper Example | Topics and Well Written Essays - 1000 words

Texting While Driving - Research Paper Example The irony in the story notwithstanding the lesson is clear that texting while driving is a dangerous practice and the more one does it the more likely they are to end up in a crash. Taking cognizance of the fact that driving by itself is dangerous, allowing texting, which has been proven to increase ones chances of losing control of a vehicle, is illogical, irresponsible and different from allowing drunk driving. Each day 15 people are killed while over 1200 are injured in car crashes that involve a distracted driver, whereby these distractions involve taking one’s eyes of the road, hands of the wheel or focusing on something else besides driving. What do all this distractions have in common is that any driver driving and texting will have to engage in at least one or all of these distractions at some point during the writing; the more they text, the more likely they are to veer off the road or hit another car, pedestrian or object. In this paper, it will be proven through res earch and statistical data as well as logical reasoning that texting while driving is a dangerous practice that needs to be curbed with all urgency. Due to the increased availability of mobile phones and other hand held devices;  texting and driving has been on the increase in the last few years; studies have attested to the increasing number of accidents related to texting. Statistics reveal that in the year 2009 more than 54,000 people died, as a result of distractions while driving with 240 000 being injured as a result of the same (â€Å"Injury Prevention & Control†¦"). This resulted to AAA launching a campaign to ensure that texting and driving were outlawed in all the American states without exemption in an effort to mitigate the often-dire consequences of texting while driving (AAA). They registered a considerable level of success since after the ban was implemented in California, the percentage of drivers texting went down by approximately 70 percent (AAA). In June 2 012 a Massachusetts teen was sentenced to serve one year in jail for involvement in deadly car while writing a text, under the new state laws that criminalize injuring someone while texting and driving (Conan). In ten American States, talking on hand held devices are not allowed while 32 ban cellphone usage by novice drivers, while 39 have banned texting and driving. It is worth noting that more states have banned texting while driving than taking and receiving calls by both seasoned and novice drivers; this is because with time people are realizing how fatal the simple action of sending a text can be. Ironically, the texts are often inconsequential messages that were not necessarily urgent such as a discussion about what one had for lunch or sharing jokes; thus it begs the question whether such trivial interactions are worth risking life and limb. Texting while driving has been proven seriously impair the drivers reaction speed on road, considering that drivers often have to make s plit second decisions which at time involve life and death, this poses a consummate risk to themselves and other or road user in their way. Consider a study carried out at the Texas Transportation Institute; 42 drivers were asked to drive while texting on an 11 mile test track and they were required to stop when they saw a flashing light, the experiment was also done when they were not texting. The researchers recorded the reaction times in the different cases, and according to this study, drivers

Human Resource Information Systems Essay Example | Topics and Well Written Essays - 500 words

Human Resource Information Systems - Essay Example In this industry, there is need for the employees to work in a friendly and comfortable environment. Their working environment can only be comfortable if they have things to do with their health looked into; if they get their salaries effectively and other things related to work made easier for them. This will definitely boost the morale of the employees and they do their work effectively (Gupta & Chhabra, 2004). When Mr. Morgan approached me regarding all this for advice as a HR Consultant, I decided to introduce him to the Human Resources Information System (HRIS). Since he would like to travel less due to the cost of fuel, the HRIS should be able to help him execute most of his work effectively and at cheaper costs. This will save him time, energy, and money. IDENTIFIED PROBLEMS: The HR problems Mr. Morgan is facing will be no more as soon as the use of HRIS is put in place. The main problem was travelling every week, which wasted so much time and was expensive in terms of fuel. The manner in which he made the payroll checks and the use of Excel spread sheet to prepare them would greatly be improved through HRIS. Some of the HR functions, which will be efficient, in this case are: Salary determination is one of the most important functions in this business. The work of HRIS in this field acts as the software for clarifying for data entry, data information, and data tracking. It helps the Human Resources to manage accounting functions and payrolls within the company or business. It is the most efficient and effective way of transacting accounting calculations. It will provide data, which is very accurate. It can also keep and retrieve big amounts of data making work much easier (Gupta & Chhabra, 2004). HRIS NEEDS ASSESSMENT: The computerization used in the HRIS might create more effective process in the functions above, due to the fact that it has the ability to perform very heavy tasks within a short time. For instance, if the HR

Ottoman history Research Paper Example | Topics and Well Written Essays - 1500 words

Ottoman history - Research Paper Example Occupying this important chokepoint, the Ottomans were able to derive a great deal of riches based upon control and management of the trade that forever flowed between East and West. Much like the Byzantines before them, the Ottoman Empire served as a link between Europe and Asia in greatly benefited from the profits of the exchange that was perennially flowing over these geographic boundaries. Although there can be many identifications and definitions for the means by which the Ottoman Empire was able to exert such powerful degree of influence, military might, and cultural dynamism, it will be the purpose of this analysis to discuss and analyze the means by which a pervasive in nearly continual process of centralisation can ultimately be understood as the most powerful dynamic that allowed the Ottoman Empire to survive and thrive for such a very long period of time. As such the following analysis will trace this trend through three different secondary sources: The Great Ottoman-Turk ish Civilization, The Ottoman Empire, and The Ottoman Empire and the World around It. Whereas other, lesser powers, have grown powerful, wealthy, and then almost mysteriously vanished into the annals of history, the Ottoman Empire, through this process of centralisation, was able to oversee and ensure that the continued strength and wealth that such a process had previously been able to integrate was furthered into the future. This process was referenced specifically by the book The Great Ottoman Turkish Civilization.... Rather, the only one dimensional aspect of centralisation refers to the level to which a central figure in power structure oversaw, directed, analyzed, and guided nearly every decision that was made within the state/Empire. Accordingly, the multidimensional aspects of what centralisation necessarily implies will be discussed and analyzed as a means of integrating the reader with an understanding of how centralisation was ultimately affected within the Ottoman Empire (Cicek 47). Moreover, by identifying the level and extent to which centralisation played with regards to ensuring that the Ottoman Empire remained resilient and strong, the author will further be able to detail particular practices and unique approaches that the Ottoman Empire utilized with regards to dealing with its large, multi-religious, and multiethnic population. The second text under consideration within this analysis, The Ottoman Empire, argues that centralization played an important role within the administration and direction of any empire; so much so that it helped to define and constrain the way in which the entire process of imperial power was directed. By the very nature of Empire, it is a system in which territories and peoples that are otherwise not necessarily similar to the conquering power are incorporated into the governing structure (Kia 82). As a function of this incorporation, the Empire is usually made relatively wealthier, more populous, and more secure due to the fact that it has been able to extend its boundaries beyond the regions to which it previously laid claim to. Yet, the fundamental drawback that has been seen by a host of imperial powers within the past is the fact that the