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Exploit the product life, image - Coggle Diagram
Exploit the product life
Historical pattern
• Decline
It lose the consumer appeal and sales drift downward.
Three operating questions will quickly occur to the alert executive:
Given an existing product, how can one determine what stage it is in?
Given all this knowledge, how can it be e!ectively used?
Given a proposed new product or service, how and to what extent can the shape and duration of each stage be predicted?
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• Maturity
Demans levels off and grows, for the most part, only at the remplacement and a new family.
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• Growth
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"used apple policy"
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• Take advantage of the product lifecycle
• As acceptance rate accelerates industry-wide factory sales increase
• lower prices due to later advances in technology, production shortcuts
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The story of the most successful products, have four stages
Development stage
The product is created, the existence of substitutes is taken into account and its usefulness to consumers is fixed.
Maturity stage
The market maturity stage forces the producer to concentrate on holding his distribution outlets, retaining his shelf space, and, in the end, trying to secure even more.
Vs. Chances of Success
The novelty creates a certain special visibility for the product, with a certain number of people on the sidelines to see how the first customers are doing.
Taking advantage of the product life cycle requires having many retailers who can provide considerable help in the correct use of the product
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Favorable: you will get, for the same reason
Profit Squeeze
During the market growth stage unit profits boom as output rises and unit production costs fall. Total profits rise enormously.
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Originator's Burdens
The original producer is most at stake
-This company bears most of the costs and risks of developing both the product and market
Competitive Pressure
The innovators help creat the boom that becomes the market growth, takeoff, the potencial rate of aceleration is diminished, these developments restrict the originating company’s rate of growth
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Frequent usage
The trend toward more casual living
The “social necessity” of wearing stockings
Promoting more frequent usage among current users as a means of extending the product’s life
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Varied usage
Promote the “fashion smartness”
The idea was to raise each woman’s inventory
Hosiery was to be converted from a “neutral” accessory to a central ingredient of fashion
New users
Advertising, public relations, and merchandising of youthful social and style leaders would have been called for
legitimize the necessity of wearing hosiery among early teenagers and subteenagers
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New uses
The systematic search for new uses for the basic material stretched the product’s life.
Demonstrates how the continuous development of new uses for the basic material constantly produced new waves of sales
Product innovations designed to create new uses
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