2a) The product life cycle

The product life cycle describes the stages of a produce from launch to being discounted. It is a

strategy tool they helps companies plan for new product development and refine existing

products. So now we are moving on to look at how the marketing implications for each and

every stage of the product life cycle. The main of Marketing is to provide customer value at a

profit of the organisation so we will look the profitability side on this discussion but obviously

you cant provide profit without providing value to the customers. For example a cinema, it's only

get customers of they plays the movies that is best to the audience so they will keep coming

unlike if they play what they like.

So now moving to the first stage of a product life cycle which is introduction of a product to the

marketing. This is usually after the new product development thus when come the start of the

product life cycle which means if a company follows the good way of new product development
they are aware to whom they will introduce their products at what time and cost. Even though the

short comings is there and the marketers must address them properly for example the product is

completely unknown to the company. This means no one will be care to taste the product unless

there is persuasive factors like relatively cheap prices. They can't have more product in the

market since they will not be sure if the customers accepted their products or it will result in

expires. They can even charge low prices because the distribution is limited and promotion will

be personalised. It is very difficult for a product to proceed from this stage as the already existing

players will try by all means to stop a new product. According to the Gabrielle Wright 95% of

new products fail on this stage, for example maxi drink is failing to penetrate the because the

existing players is not even allowing their products to decline the likes of Coca-Cola. So the

marketing implications include advertising so that customers will be aware of your product and

be eager to just taste, which means obviously the product must be of best quality like what

Probrands did on Maas until now the people realising that it's inferior to ever existing lacto but

they have already loyal customers who will buy their product no matter what.

Now the product is accepted in the market, it moves to growth which is the gaining of popularity

of the product, in other words we are saying the product is now diversifying in different markets.

This is the increase on market share, the marketers will now move on to focus on RACE

objectives on market penetration and development such as communicating product benefited and

building the brand. In this stage price is now declining since the product is now brought in

greater numbers and with volume. In this stage promotions will be done in different ways and

the mass selling will be introduced since the product is now outclassing the already existing

product for example Cook more cooking oil is now gaining the market at time it can be
purchased even though there is products like Roil and Zimgold on shelves. In this case marketers

will make sure the product will be always available in the market so that it will not create a gap

for the customers to revisit it's past.

Now that the product had grown very well obviously it will mature, yes sometimes other

products will end in growth stage due to premature growth issues. At this stage product competes

with alternatives and it's pricing drops. Distribution becomes intense (It's available everywhere)

and promotion on the differences to competitor's products. In this stage when managing

differentiation strategy we make us of DRIP model which differentiate, reinforce, inform and

persuade. At this stage thus when organisations adopted the sponsorship ways of advertising, for

example Castle Lager sponsoring football in the country, or what is called cooperate

responsibility (giving back to the community).

If the organisation fails to embrace enough strategies on the maturity stage the product will

decline and that is the end of products. The product is no longer acceptable in the market thus

when the strategies like rebranding will be harnessed. The will rice and the distribution has

become selective as some distributors have dropped the product due to long shelf presents.

Promotions will be done to remind the customers that the product is still available.

So they are many ways we can use to extend the product life cycle that includes advertising or

changing of packaging (rebranding), specifications for products like if a cinema, you can add a
restaurant alongside so a customer will be served for both and lastly you can also consider new

markets or platforms.

Question b

STRATEGIC BUSINESS UNIT

Stars Question mark

Consolidate/expand Invest/ improve or Divest

Cash cow Dog: divest

Harvest

High Low

Relative Market share

Product life cycle

The BCG Matrix and the product life cycle are the two components tools that relate to different

aspects of the product's performance. The BCG looks at market share and market growth and

how they impact on cash usage and generation. The PLC looks at sales or revenues over time and

level of profitability. So as results the maim relationship between the two is they follow a trend

on product performance from it's introduction in the market which are questions marks on the

BCG matrix where by an organisation askes if they can invest on new or improve the already

available or divest, so if its in the PLC thus the introduction of new products, them the product

accepted in the market and moves to growth in the PLC which is the Stars in BCG thus we say

the product is gaining market share growing very fast.

Then comes to maturity which is cash cows on BCG matrix and thus when the investor is getting

their profits at it's pick. On the PLC the product will decline that means the end of the product

and the same as in the BCG the product will also decline on the dogs also. So to polish up the

relationship between the let's illustrate with the final diagram below:
So looking at the above each and every stage for BCG suits in the product life which means it's

just different models only.

References

Prof Samarth Singh (December 2020) The psychology of selling

Elon Mask (December 2020) Marketing Approach in digital age

Andrew Crofts (1987) Market Focus

Michael J Thomas and Norman waite (1994) The marketing digest

Leslie de Chernatony and Malcolm H.B. McDonald(1987) Creating powerful brands