...Life Cycle Management Analysis for Apple’s iPod MKT / 230 September 6, 2009 Life Cycle Management – Page 2 The Apple iPod allows consumers to download music, videos, and various other entertainment items. The iPod can be seen everywhere from the gym to the local coffee shops. Even automakers have started to install iPod outlets in newer vehicles to draw a new kind of consumers to their autos. This report will provide some insight into Apple’s product objectives, marketing strategies, introduction phase, product growth, maturity stage, and decline of product in the market place. Product life cycle typically consists of five main aspects: (1) product development; (2) introduction; (3) growth; (4) maturity; and (5) decline. Various marketing objectives that will help the company achieve the overall product goal are as follows: Be the leading supplier of MP3 players in all markets in which Apple competes. Increase product sales. Increase company revenue. Increase brand awareness. Expand distribution to department stores. Develop a campaign to encourage current users to increase current use of product. Life Cycle Management – Page 3 During the introduction stage, Apple made careful choices with their marketing strategies by paying close attention to pricing, promotional and placement decisions. The introduction of the iPod transformed Apple into an entertainment giant. Apple’s approach to introducing the iPod to consumers was geared more towards...
Words: 914 - Pages: 4
...PRODUCT LIFE CYCLE ON STRATEGIC ORIENTATION OF A ENTREPRISE Mohammad N. Shahidi, KIMEP, Almaty, Kazakhstan ABSTRCT The impact of product life cycle (PLC) on strategic orientation (SO) in dynamic environment, which is a subject that has interested strategic management scholars, is the focus of this proposal. The literature reviewed shows that despite the worldwide research on strategic management, there is still not a single definition for such a term. As a result, a wide range of conceptual frameworks exists for the formulation and implementation of strategies. There is no consensus on the factors among the scholars that affect strategic orientation of a enterprise. The consideration is mostly towards market/costumer satisfaction, technology, competition, with the enterprise’s capabilities affecting the most. Some of the scholars emphasize management issues and strategic thinking. Others such as Porter, focus on typology and resource bases. However, few scholars focus on the impact of product life cycle on strategic orientation. The attempt in this paper is to show that not only does the PLC orient strategy of an enterprise faster and straight forward than any other factors, but it also takes all other factors into account. The main question is “how product life cycle affects the strategic orientation of a enterprise”. This study began by defining strategic orientation, product life cycle, and their analysis. The study is focused on how the product life cycle has...
Words: 11783 - Pages: 48
...PRODUCT DESIGN Product Decision / Analysis / product Development Product Design 1) Product is anything that is capable of satisfying a felt need. A new product is the one which is truly innovative and is significantly different from other products. 2) Product Design specifies which materials are to be used, determines dimensions and tolerances define appearances of the product and sets standards of the performance. 3) Service Design specifies what physical items, sensual benefits and psychological benefits the customer is to receive from the service. Design has a tremendous impact on the quality of product or service. An Effective Design Process 1) Matches the product or service characteristics with customers requirement 2) Ensures customers requirements are met in simplest and least costly manner 3) Reduces the time required to design a new product or services 4) Minimize the revisions necessary to make a design workable. Product Design and Development 1) New Product Design 2) Improvement in the design of existing product due to life cycle of a product Product Decision: 1) the selection, definition and design of the products. The existing of the organization depends upon how well it provides goods and services to society. Since every product has life cycle the old product live for some time and die and hence new product are required for society this is due to changing societies, habits, tastes, liking etc. Thus operation...
Words: 3814 - Pages: 16
...MARKETING AND PLANNING MANAGEMENT COURSE CODE: MKTG 627 PARTICIPANTS NAME: SAITOT K JOEL REG //: 2015010034 NAME: STEPHEN L SULTAN REG //: 2015010035 LECTURER’S NAME: Dr. JANETH ASSIGNMENT N0 1 Describe the stages of the product life cycle and how marketing strategies change during the product life cycle. INTRODUCTION All products and services have certain life cycles. The product life cycle refers to the period from the product’s first launch into the market until its final withdrawal and it is split up in phases. During this period significant changes are made in the way that the product is behaving into the market i.e. its reflection in respect of sales to the company that introduced it into the market. Since an increase in profits is the major goal of a company that introduces a product into a market, the product’s life cycle management is very important. Some companies use strategic planning and others follow the basic rules of the different life cycle phase that are analyzed later. The understanding of a product’s life cycle, can help a company to understand and realize when it is time to introduce and withdraw a product from a market, its position in the market compared to competitors, and the product’s success or failure. For a company to fully understand the above and successfully manage a product’s life cycle, needs to develop strategies and methodologies. The product’s life cycle - period usually consists...
Words: 2189 - Pages: 9
...Section A: Short Answers 1) It is difficult to improve service productivity because services cannot be stored on shelves for sale at a later date. Also, in the service sector, it is not always possible to increase output given the same number of input, as the input is usually people and the service experienced by them contains many variables, each of which can lead to a different outcome for the consumer. For example, whenever I visit my hairdresser in Jades Hair Salon, I come back very happy knowing that my hair will look neat and perfect. However, recently, my hairdresser seemed very rough while combing and trimming my hair and even at the end, my hair setup did not turn out quite well, and thus it made me very unhappy about it. Another example is my favorite restaurant Wishbone, recently the service quality seemed very poor to me as the staffs do not greet in a friendly manner plus the food takes so much time to get served which makes us even more frustrated. As with manufacturing firms, successful service businesses use marketing as a tool to strongly position themselves to selected target markets. These firms develop their positions by using marketing mix activities. Since services are different from tangible products, they need additional marketing approaches. For example, products of Pure Fiji are manufactured to the premier American Quality Control Criteria with the use of the proper manufacturing guidelines. Pure Fiji produces in bulk, stocks their outputs and sells...
Words: 2056 - Pages: 9
... Subject Group Business Administration Level First cycle Progression G1F Date of Ratification Approved by Organizational Committee 20091218 The syllabus is valid from the autumn term 2010 Prerequisites Program course from the customer's perspective Learning outcomes After completing the course students are expected Expected learning outcomes The student shall Have broad knowledge of * Competition Profile * Differences Between Product, Service & Experience * Product Life Cycles * Differentiation versus Commodification * Innovation and Product Development * Branding * Pricing Methods * Pricing Tactics Be able to apply * Competition profile as "brief" for product development * Strategies for Product Development * Management of Product Development * Pricing Understand * Differentiation and Commodification * Innovation and product development * Differences between products, services and experiences * Separation, "Detachment", the needs and solution information * Differentiation and Commodification * Innovation and product development * Differences between products, services and experiences * Separation, "Detachment", the needs and solution information * Innovation, product development against, for, with and by customer * Branding * Contents Content From need to offer; from value analysis of competitive profile; competitive profile as a brief for...
Words: 660 - Pages: 3
...or 10 ounce aerosol can) and whether she should move forward with a market test. This case provides the opportunity to consider common issues in product management, namely product life cycle management, and the role of packaging in the marketing mix. As we have discussed, organizations are always looking to grow their business. For the Soft and Silky brand, how do you “bend” the product life cycle curve upwards? Soft and Silky appears to be in the mature stage of its product life cycle. This case also provides the opportunity to address risk (uncertainty and amount at stake) in a straightforward manner. Case data/information allows you to interpret focus group information and case histories, calculate margins and payoffs, compute the expected monetary value (EMV) of the two aerosol packages, and determine the value of “perfect information.” Valuing perfect information provides a benchmark when considering research outlays. You are to read Kerin and Peterson Chapter 3 section (pp. 55-61) on decision analysis and perfect information as a primer (note that these tools are embedded in a discussion of general case analysis). For you margin analysis, you are given suggested retail pricing and associated distribution margins to derive the manufacturer’s selling price (Dermavescent Laboratories, Inc.). Your analysis should consider contribution margin per ounce. Note that the $10,000 supplier setup charge is a relevant cost only for the decision whether to introduce an...
Words: 459 - Pages: 2
...Chapter 9 New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as...
Words: 9355 - Pages: 38
...unique crispy-thin crust. A third wants pizza from Smokey’s because of the wood grilled oven taste. Even a simple product like a pizza can have different features unique to its producer. Different customers have different tastes, preferences, and product needs. The variety of product designs on the market appeal to the preferences of a particular customer group. Also, the different product designs have different processing requirements. This is what product design and process selection are all about. We can all relate to the product design of a pizza just from everyday life. Now consider the complexities involved in designing more sophisticated products. For example, Palm,Inc. (www.palm.com) is a leading provider of handheld computers whose slogan is “different people, different needs, different handhelds.” The company designs different products with differing capabilities, such as personal information management, wireless Internet access, and games, intended for different types of customers. The company also has to decide on the best process to produce the different types of handhelds. The challenge of product design can also be illustrated by an example of the Alza Corporation. Alza is a leader in designing new ways that pharmaceutical drugs can be administered to different types of patients. One of their product designs is an under the skin implant for pharmaceutical drugs that previously could only be administered by injection. The product design had to include time release...
Words: 3808 - Pages: 16
...Product Life Chycle”: Product life-cycle (PLC) like human beings, products also have an arc. From birth to death, human beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is seen in the case of products. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes, Product life cycle The concept of product life cycle is based on the following observations: * Products have a limited life. * Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller. * Profits rise and fall at different stages of the product lifecycle. * Products require different marketing, financial, manufacturing, purchasing, and the human resource strategies in each stage of their life cycle. Stage Characteristics 1. Market introduction stage 1. costs are very high 2. slow sales volumes to start 3. little or no competition 4. demand has to be created 5. customers have to be prompted to try the product 6. makes no money at this stage 2. Growth stage 1. costs reduced due to economies of scale 2. sales volume increases significantly 3. profitability begins to rise 4. public awareness increases 5. competition begins to increase with a few new players in establishing market 6. increased competition leads to price decreases 3. Maturity stage 1....
Words: 3108 - Pages: 13
...BETWEEN PROJECT MANAGEMENT AND PRODUCT CYCLE TIME TOWARDS COMMERCIAL SUCCESS TABLE OF CONTENTS Pages Executive Summary 2 1.0 Research Overview 2.1 Introduction 3 2.2 Research Background 3 2.0 Literature Review 2.1 Review of the Literature on the relationship between cycle time and products 3-9 3.0 Analysis and Discussion 9-10 4.0 Conclusion 11 5.0 References 12 CHAPTER I 1.0 Introduction 1.1 Research Background As global competitive pressure increase and product life cycle compress, companies are trying to shorten product development cycle times (Griffin, Journal of Marketing Research, Febuary 1997). Nevertheless, faster may not be always good. Intensive research in one firm shows that rapid development times are not correlated with expected commercial success (Utterback M. H., 1995) New product development (NPD) cycle time is critical because life cycle are shrinking, and obsolescence is occurring more quickly than in the past while competition also has intensified. To keep up with competition and continue grow in the face of shorter product life cycle, it has become...
Words: 1869 - Pages: 8
...Product Life Cycle Stages Explained The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products. Introduction Stage – This stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Growth Stage – The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Maturity Stage – During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage. Decline Stage –...
Words: 1704 - Pages: 7
...April 2009 QUESTION 3 Identify the stages in the product life-cycle. Discuss the strategies that marketers could utilize as the product goes through each stage of the product life cycle. First is introduction stage, this stage of the cycle could be the most expensive for a company launching a new product. The size of the market for the product is small, which means sales are low, although they will be increasing. On the other hand, the cost of things like research and development, consumer testing, and the marketing needed to launch the product can be very high, especially if it’s a competitive sector. Example is 3D TVs which need to compete with the LCD’s TV in pricing and cost. The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage. Example is Smartphone. Nowadays, people getting interest to buy smartphones as they can fully utilize the phone to help them in daily activities. During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products and businesses need to invest wisely in any marketing they undertake. They also...
Words: 3685 - Pages: 15
...Understanding the Product Life Cycle (PLC) is of critical importance to a firm launching a new product. It helps a firm to manage the risk of launching a new product more effectively, whilst simultaneously maximising the sales and profits that could be achieved throughout the product's life cycle. 1. What is the product life cycle? The PLC indicates that products have four things in common: (1) they have a limited lifespan; (2) their sales pass through a number of distinct stages, each of which has different characteristics, challenges, and opportunities; (3) their profits are not static but increase and decrease through these stages; and (4) the financial, human resource, manufacturing, marketing and purchasing strategies that products require at each stage in the life cycle varies (Kotler and Keller, 2006). Whilst there is a common pattern to a product's life cycle, which is bell-shaped in nature, this pattern does vary depending on the specific characteristics of a given product. These life cycle patterns are illustrated and discussed in the subsequent section. 2. What are the main aspects of the product life cycle? The typical PLC consists of five main aspects: (1) product development; (2) introduction; (3) growth; (4) maturity; and (5) decline. In the diagram below, the respective sales (in red) and profits (in blue) across these five stages are illustrated. Figure 1 The PLC begins with product development, during which time the firm devises and creates...
Words: 2038 - Pages: 9
...Chapter 9 New-Product Development and Product Life-Cycle Strategies 1) What are the two ways that a company can obtain new products? A) line extension and brand management B) internal development and brand management C) new-product development and acquisition D) service development and product extension E) market mix modification and research and development Answer: C Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 2) Product improvements, product modifications, and original products can all be classified as ________. A) pioneer products B) new products C) product concepts D) product ideas E) test products Answer: B Diff: 1 Page Ref: 258 Skill: Concept Objective: 9-1 3) Which of the following is NOT a potential reason for a new product to fail? A) an underestimated market size B) a poorly designed product C) an incorrectly positioned product D) higher than anticipated costs of product development E) ineffective advertising Answer: A Diff: 2 Page Ref: 258 Skill: Concept Objective: 9-1 4) Which of the following is NOT a challenge presented by the product life cycle that a firm must face? A) All products eventually decline. B) Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages. C) A firm must be good at developing new products to replace aging ones. D) A firm must be good at adapting its marketing strategies. E) It is difficult to plot the stages as...
Words: 9355 - Pages: 38
