Audii’s The Reservoir 2012 is a fuel-efficient vehicle that is guaranteed to deliver power and performance at the most cost-effective endeavour. This product came out of the rising gas prices that are currently facing our economy. As such Shavin’s Automobiles Ltd decided to expand their marketing goals by introducing this new fuel-efficient vehicle. It has as its target market young, well-educated, moderate to high individuals, couples, or small families seeking practical, environmentally responsible transportation. The car will be positioned as more economical to operate, more fun to drive and less polluting than today’s internal combustion engine or hybrid cars. This fuel-efficient vehicle will be offered in three colours: red, white and blue and will have optional air-conditioning and power-drive features.
With this in mind then, as the Marketing Manager I will be assessing this product with regards to the product life cycle. In other words, I will be looking at the different stages in the product life cycle and ascertain ways in which the product can be properly managed through this process in order for it to have certain success. Product life cycle (PLC) refers to the course a product’s profit and sales take over its life time. Now, to say that a product has a life cycle is to assert four things:
1. Products have a limited life.
2. Product sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller.
3. Profits rise and fall at different stages of the product life cycle.
4. Products require different marketing, manufacturing, purchasing and human resource strategies in each life cycle.
Most product life cycle curves are portrayed as bell-shaped as indicated in the diagram below.
This curve is typically divided into four stages:
1. Introduction: This is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent because of the heavy...