Describe The Product Life Cycle Of A Given Product - 825 Words

Describe The Product Life Cycle Of A Given Product (Coursework Sample) Content: Mapping the Product Life CycleNameInstitutionIntroductionThe product life cycle (PLC) refers to the path that a product takes from the time it is first launched into the market to the final stage at which it is withdrawn. It is pretty much similar to the life cycle of any living organism, which starts at birth and expires at death. Likewise, a new product or service is birthed when it is created and introduced into the market, it becomes productive during the growth period, declining sales symbolizes its old age, while withdrawal from the market signifies its death. In marketing terms, a product undergoes four major stages namely, market introduction, growth, maturity, and decline (Saxena, 2005). With reference to Colgate Herbal toothpaste marketed by Colgate-Palmolive Company as a case scenario, this essay discusses the concept of Product Life Cycle and its significance to marketing and marketing managers.The Introduction StageThe introduction stage is the initial ph ase of a product in the market, and it marks a period when the product is not popular among consumers, and is dominated by established rival/substitute products (Saxena, 2005). Accordingly, the introduction stage is characterized with heavy corporate spending to promote the product. Consequently, the new product experiences slow growth, while posting low profits as a result of low sales and high marketing costs.Pricing is important at this stage because it should be designed to make the new product more affordable than established rivals. The product life cycle, in this regard, plays an important role in informing marketing strategies by helping marketing managers to identify consumer needs that the new product should target to meet, for example affordability (Pillai, 2010). In addition, the company focuses on aggressive advertising to create awareness about the product and its attributes. A good example is the launch of Colgate Herbal toothpaste by Colgate-Palmolive in 2000, in whi ch the company promoted it as a natural (chemical-free) toothpaste (Krishnamacharyulu, 2010). This attribute of Colgate Herbal helped to increase interest and demand among health-conscious consumers by creating the impression that they will be safer using a herbal toothpaste.The Growth StageThis stage is marked by increasing sales by volume and profitability, increased consumer awareness about the product. At the same time, costs start to decrease because the business is investing less in promotional advertisements. The products growth stage is important to marketing managers as it is the phase in which distribution should be expanded to maximize revenues (Saxena, 2005). In this regard, the product life cycle is significant to marketing as it helps managers to know when to limit and maximize distribution (introduction and growth stages, respectively). At this stage, the main objective is to increase the market share by expanding into new markets and increasing, and maximizing output to meet market demand. In this regard, marketing managers should take advantage of high demand to create a strong brand in anticipation for future competition. For instance, Colgate-Palmolive used the toothpastes growing demand to promote customer loyalty to aggressive marketing and promotions, such as giving free toothbrushes for every purchase.This stage has an impact on pricing strategy as it allows marketers to sell at optimum price (at or near market price) to maximize profits. For instance, marketers will not have to reduce prices to attract customers, but to sell at the same price as established rival brands. This will allow the business to generate the necessary profits to fund expansion into new markets.Maturity stageMaturity is the peak stage in the product development cycle, and it marks the longest phase in the existence of most products (Saxena, 2005). The primary interest of companies in this stage is protecting their market share by pursuing customer loyalty. In this regard, knowledge of the product life cycle is important in allowing managers to anticipate competition from rival marketers, and respond accordingly to retain market share. For instance, the profits that a product generates in its growth stage allow the company to give discounts as a means of creating customer loyalty. The market performance of Colgate Herbal nearly two decades after its launch points to the strength of its brand name and ability to sustain customer loyalty in a competitive market environment.Decline StageT...