16

CHAPTER 3

PRODUCT LIFE CYCLE

A. Future Plans for Research and Development

A.1 Product Life Cycle

The figure depicts the stages of the product life cycle, which began with the

product's introduction, followed by the growth stage, during which brand awareness

spreads and the market begins to respond, the maturity stage, during which demand is at

its peak, and finally the decline phase, when the product has essentially reached its

saturation point. Further details will be provided below.

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INTRODUCTION

When a product advances from the development to the introduction stage, from

the development stage to the market Furthermore, the stage of introduction may have

customers must be encouraged to try the goods; Marketing, consumer testing, advertising,

distribution, and other awareness-raising measures can be costly, especially if the

industry is competitive; Customers must be persuaded to try the goods Reduced

profitability as a result of slower sales and the need to spend money on advertising; Free

manual samples, discount vouchers, refunds, or introductory prices are all options; The

demand will be lower, and the launch may be rocky, but there will be minimal

competition at this time, and if the public enjoys the product, AA 3J's Company will have

a one-of-a-kind opportunity to succeed.

GROWTH

The product life span increases as brand recognition grows and the market

responds. The growth phase of the cycle begins. Customers and distributors are aware of

this. As a result of promotion and word of mouth, the product's advantages and benefits

have increased, allowing it to become profitable and provide a higher return on

investment. Depending on the severity of the reaction, the producer may ramp up

marketing efforts, offer support services, or start producing supplementary products.

Although the expansion phase is a sign of success, the newly released product is not

without risk.

MATURITY
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The product's life cycle maturity period, which should be the longest, when

sales are at their highest. This is when the greatest demand exists. The general public

has competitors have taken notice of the excellent response. There is no development,

manufacturers concentrate on potential during the mature period maintaining market

share by extending the life cycle as much as possible before oversaturation is caused by

competitors. Sales may initially decline.  However, AA 3J's Company should eventually

improve.

DECLINE

During the declining stage, the product has almost achieved saturation. Pricing

will either remain stable or decline modestly to remain competitive. During this time,

LRJV Tech tries to extend the product's lifespan. They can either make significant

changes to the product in order to keep it on the market, or they can eliminate it and

move on to something else.

B. Time between purchases

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300,000 TIME BETWEEN PURCHASES

250,000
200,000
150,000 275522.97175
218240 231334.4 245214.464 259927.33184 04
100,000
50,000
0
2022 2023 2024 2025 2026

This graph shows the increasing sale of our product throughout the whole
year.

Technically, raw materials are assumed to be purchased per month.

However, it was assumed that purchases will increase by 6% annually. Thus, the

graph provided and shown above stated the changes in the monthly purchases,

assuming that the same number of purchases was done monthly within the

operating year.

C. Up-sales, cross-sales, and down-sales

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Up-Cells, Cross-Cells, and Down-Cells

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

This graph shows the movement of sales throughout the year.

The proposed entity only offers a single product but with innovations. The

innovations then are installed on the product itself. It will then be assembled and

will be offered on the market. Hence, up selling is the only option for the entity

provided that the markets received the offer with great interest and recommend it

to others. Thus, down selling and cross-selling will not be of use since there is

only a single product with the same features and the same price inputted.

The figure then entails only the up selling given that the product offered

greatly interest the market and recommends it; hence, the up selling is based on

the increase of sales

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Table of Contents

Front Page ---------------------------------------------i

Title - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ii

Approval Sheet - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - iii

Acknowledgement - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - - - - - - iv

Dedication ---------------------------------------------v

Executive Summary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -ix

Chapter 1 INTRODUCTION

A. Product Background ------------------------------1

B. Features of the Product ------------------------------4

C. Benefits of the Product ------------------------------5

D. Emotional and Practical Pay-offs - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6

E. Mission ------------------------------7

F. Vision ------------------------------7

G. Objectives ------------------------------8

Chapter 2 PRODUCTION PROCESS

A. Existing, new, and innovated

product or service ------------------------------9

B. Source of raw materials,

supplies or components - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10
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C. Assemble materials/supplies/components

through manufacturing or production - - - - - - - - - - - - - - - - - - - - - - - - - - 11

D. Quality Assurance - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12

E. Receive and deliver products

(supply chain logistics) - - - - - - - - - - - - - - - - - - - - - - - - - - - - -14

F. Manage daily operations,

bookkeeping and inventory -----------------------------
15
Chapter 3 PRODUCT LIFE CYCLE

A. Future plans for research and

development - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16

B. Time Between Purchases - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18

C. Up-sales, cross-sales, and

down-sales --------------------------

- - -19

Chapter 4 MARKETING PLAN

A. SWOT Analysis - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -20

B. Competition Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 21

C. PESLTLE Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 22

D. Product Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23

E. Marketing Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24

F. Market Opportunity Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 24

G. Marketing Mix - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 25
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H. Market Segmentation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 26

Chapter 5 FINANCIAL PLAN

A. Capital Outlay - - - - - - - - - - - - - - - - - -- - - - - - - - - - - -28

B. Pricing - - - - - - - - - - - - - - - -- - - - - - - - - - - - - -43

C. Sales - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 44

D. Sales Forecast - - - - - - - - - - - - -- - - - - - - - - - - - - - - - -44

E. Projected Financial Statements - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -45