The value of the product life cycle is that it provides clues as to what marketi
ID: 330760 • Letter: T
Question
The value of the product life cycle is that it provides clues as to what marketing mix strategies might need to change as the product moves through the cycle. For example, a high-tech product being launched will have to decide whether to use penetration or skimming pricing strategy. That pricing strategy will then determine how much marketing communications is needed and what distribution strategy is needed. Because high-tech products are particularly susceptible to competition and entry of substitute products, the company needs to stimulate sales early, knowing the product life cycle may be short.
Pick one of the following products and identify which stage of the life cycle you believe it is in and why. You don't need to do research; just use your personal experience and judgment. You may want to check out the product's website. Then, identify what needs to be done to the marketing mix based on the stage you selected.
Apple iWatch
Kellogg All-Bran cereal
Crest Complete toothpaste
Ford Focus automobile
Häagen-Dazs ice cream
Libby Sweet Peas canned vegetables
Rolling Barn Door Hardware by CSH
Beyond Meat Chicken Free Strips
Since each of you are picking different products, scroll through some responses and see if you have a different point of view and post as appropriate.
You don't need to post to another student; however, you need to use a reference.
As a reference, here is a graphic showing the marketing objective at each stage.
Explanation / Answer
I am selecting Haagen-Dazs ice cream. It is at the top of the of its product life line in the maturity area. It has few years left before it will start declining as In the United States the premium ice cream market is declining and the low fat and yogurt market is growing because people are concerned about fat and cholesterol and ice cream is high in cholesterol. So to remain in the market Haagen daz must bring in new low cost ice cream with low fat content but by doing this the company may lose its prestige and profits. It would not be worth putting money in to adverting a new ice cream when their old ice cream is still making money for the company and is in the maturity stage of the life cycle.
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