1. Product Life Cycle of Floppy Disk.

▪ Development:
The first floppy disks, invented and made by IBM, had a disk diameter of 8 inches
(203.2 mm). Subsequently, the 5¼-inch and then the 3½-inch became a ubiquitous form of
data storage and transfer

▪ Introduction:
The floppy disk was introduced in 1971 and was a success because it was the only
way to store and transfer data. made of flexible plastic coated with a magnetic material and
enclosed in a hard-square plastic case.

▪ Growth:
It was majorly used in the years 1980’s- 1990’s. As the years passed it improved its
design and also maximized its storage capacity. The first floppy disks were 8 inches (20 cm)
across. In the late 1970s, floppy disks became smaller, with the arrival of 5.25-inch (13.3-cm)
models, and the final floppy disks

▪ Maturity:
It was very much in the market throughout the 80’s and 90’s. Its maximum storage
space was 200 MB. And its size was 3.5-inch.

▪ Decline:
The product faced a major decline after the advent of better innovation in the
market. The computer produced did not support floppy disk. There were better alternatives
such USB card, CD’s, external hard disks and pen drives. In 2009 Hewlett-Packard stopped
making floppy disks completely which was stopped by Dell earlier in 2003. In April 2010,
Sony, the only company still producing floppy disks, announced it would stop manufacturing
them in March 2011. But the format is still in use by the United States Department of
Defense.

2. Pricing Strategy when the Market is Price-Sensitive

& Need Based Buyers. And why?

If the customers are sensitive to price, a significantly lower price can make our
product stand out. You can motivate customers to switch brands and build demand for your
product. Also, when there is a need and they get lower prices from our they will surely
choose our brand. Once they used our product and if they are satisfying by the product
there is chance that they will buy the product again, whether there is a little rise in prices.
Therefore, I use price penetration Technique.