Tuesday 18 December 2018

Product Life Cycle Strategies

Product Life Cycle Strategies

If in the life cycle of Products (Product Life Cycle) is consider as a strategic value in a company, then the Manager should be able to determine which position the product life cycle (Product Life Cycle) of that product. Identification in the stages of the product life cycle (Product Life Cycle) can be determined by combining factors that indicate the status of a product characteristic and also comparing with common patterns.

Stages of the product life cycle (Product Life Cycle) in a product can be determined by identifying its status in market volume, rate of change of market volume.

In all four stages of the life cycle analysis of products (Product Life Cycle) has several strategies including:

The stage of Introduction (Introduction)

  • Quick Launch Strategy (rapid skimming strategy)
    The launch of a new product at a high price with high promotion through the levels.

  • The slow roll out Strategies (slow skimming strategy)
    is a new product launch at a high price and also a little bit of promotion.

  • Quick penetration Strategy (rapid penetration strategy)
    is a product launch at a low price with a big promotion costs.

  • Slow penetration Strategy (slow penetration strategy)
    is a new product launch with low promotion rates as well as low prices.

Stage of growth (Growth)

during the growth phase in the company use some strategies to be able to sustain the rapid growth of the market as long as possible in a manner as the following:

  • Improve the quality of the product and also add privilege on new products as well as style.

  • The company must add model > new model and Companion Products > Products (i.e., products of various sizes, flavors, and others who can protect the main products)

  • Company will have to enter a new market segment.

  • It had to increase the scope of its distribution as well as entering new distribution channels.

  • The company switched from ads that can make people aware of the products (product awareness advertising) to the advertising that makes people pointing (choose) your product (product preference advertising)

  • The companies are lowering prices to attract buyers who are sensitive to prices on each layer.

Stages of maturity (Maturity)

  • The company is eliminating products that are less powerful and also to concentrate more resources on more profitable products as well as on new products.

  • By modifying the market where the company is trying to expand the market for established brands.

  • The company is trying to attract consumers who is was as users of its products.

  • By using the strategy of increasing privilege (feature improvement) which has the purpose to be able to add new privileges and expand usefulness, security or comfort in the product.

  • Defensive Strategies with which to maintain the market products which result from the strategy will modify in the marketing mix.

  • With increased quality Strategy that aims to improve the ability of a product, such as durability, speed, and also performance products.

  • With a strategy of improvement model that aims to be able to add aesthetic appeal in products such as model, color, packaging and so on.

  • By using the take-off strategy which is one of the strategies used to achieve consumer acceptance of new that phase, this strategy could renew growth when the products enter into the process of maturity.

Stages of Decline (Decline)

  • Add to it investment in order to dominate or occupy a position of competition is good.

  • Change the product or use or benefit are also looking for new products

  • Looking for new markets

  • Keep the present investment company is currently up to the uncertainty in the industry can be addressed

  • Reduce investments in companies with in active by means of leaving less profitable consumer products who.

  • With a Harvesting strategy to be able to realize a return on your cash quickly

  • By leaving the business as well as selling the company's assets.

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