Pick up a product of your choice from consumer durables. Identify the stages of PLC of the product and discuss the implications for product planning and product innovation to ensure sustainability of the product using PLC
The Galaxy Z
Product life cycle:
i) Market introduction include;
· In this stage, Samsung Group Incurred high costs due to initial advertisement, marketing, distribution, etc.
· Created demand through awareness and promotion
· There is low sales volume, increasing slowly
· Customers must be prompted to try the product
· There may be little to no competition
In this stage the public becomes more aware of the product, sales and revenue began to increase and profit is created.
· Competition begins to increase with a few new players in establishing market
· Revenue began to exceed cost and profit is created.
· Sales volume increases significantly; as the product increases in popularity, sales volumes increase.
· Increased competition leads to price decreases: price wars may erupt, technology may get cheaper
· Cost reduces due to economies of scale
iii) Maturity stage feature;
· In this stage, the product reaches market saturation
· The sales begin to decrease
· Lowering prices to fight competition
· Intensifying promotional and distribution efforts
· Finding a new targeted market.
· Increase in number of competition
· Product differentiation; improving specific features to resell the product.
· Industrial profits go down
At this stage, the product becomes less profitable to produce. Consumer tastes also change, as do new technologies which may make the product ultimately obsolete
· Fall in profitability
· A decline in the sale as competition becomes severe
For The Samsung Group to ensure that The Galaxy Z does not end at the decline stage of product life span, it needs to keep updating the product's functionalities to suit the growing need and different preferences of the consumer.