Chapter 5 : Product Life Cycle For Fingerprint Recognition Payment System
1. Can we use the PLC for deciding the brand promotion strategy? How will the market and brand influence the PLC?
2. Evaluate what techniques can be implemented by the marketer to extend a product‘s life.
3. Can a product stay in the maturity phase for an extended period of time? If yes what must be some of the key factors that can help it stay in this phase.
4. Why does a marketer have to be careful in using the PLC while planning in promotion strategy?
5. What is the advantage of Innovators for a company launching a new product?
6. What is the advantage of Laggards for any brand?
Can.
Rebranding by enhancing or adding features. Expanded artificial intelligence capabilities to deliver the highest level of performance, speed, security, privacy and accuracy with reduced user friction for fingerprint recognition payment.
Advertising after rebranding to send the new information about the fingerprint recognition payment system to existing customers or new customers.
Brand managers must increase the distribution during the growth stage. For example, more promotion about the fingerprint recognition payment system to let more customers know about this service. When the customer has higher brand loyalty to our product, we can have a longer product life cycle.
Can.
Enhance advertising by targeting the online customer since nowadays online shopping has become trendy in society.
Price cut.
The current situation analysis should be conducted to know what the current market needs. For example, online shopping is popular nowadays. The fingerprint recognition payment can be recognized by using it in online shopping. Advertisement by using online platform can be conducted to target more potential users.
If fingerprint recognition payment system need to extend period of time in maturity stage, the service charge can be reduced by giving free registration fee.
Introduction Stage
Growth Stage
Can increase sales and profit
Can be differentiated with competitors’ product
Can attract the attention of new customers to purchase the product
Can fulfill different needs of customers
When the fingerprint recognition payment system is newly introduced in the market, it can grab the attention of customers to purchase this new advanced technology.
When the payment system is innovative, it can attract more new customers to use it. When the fingerprint recognition payment system started to be commercialized and commonly used by the companies, many users will prefer to use this system for their payment. When there is an increment for the number of users, companies can earn more sales and lead to the growth of the company's profit.
When a company launches new and innovative products, it can be differentiated with other companies’ products. For instance, fingerprint recognition payment systems have special attributes which use biometric authentication for payment. It can be specially recognized by the customers,so the customers will alert with the existence of this payment system and use it. So, the company can also get market share because it is unique compared to other types of payment systems.
Fingerprint recognition payment systems adopt a new and innovative concept whereby customers can use their fingerprint for the payment and the payment will automatically successfully transfer within a short period of time. It can fulfill different needs of customers, for example, customers who have fast-paced lives would like to use this system because it is fast for transactions. For the people who prefer security, this payment system is also good for them because every customer has unique attributes for the fingerprint, and this will enhance the security of this system.
Can maintain the sales to avoid bankruptcy.
Can have buzz marketing, word of mouth recommendation.
Have loyal customers.
When fingerprint recognition payment system just launched in the market, industry have low sales and negative profit. Marketers need to be careful to create awareness in consumers’ minds by giving proper sales promotion to trigger product trials.
It is the best stage to do promotion for competing in the market but marketers need to ensure that the resources are sufficient for production.
Maturity Stage
The market need for fingerprint recognition payment reached maximum for the current users' market. Marketer need to observe the market and find new market to develop the products and services. For example, online shopping markets. If marketer can develop the plan in a good manner to promote the fingerprint recognition payment system and give some promotion such as discounts and rewards to enter the new market, the fingerprint recognition can increase the sales and gain more profit.
Decline Stage
During this stage, the sales that gain from fingerprint recognition payment is started to decline or even negative. Improper promotion strategy may contribute to higher loss to the company. Therefore, it is very important to consider carefully for promotion strategy before making the final decision.
Good reputation of the company.
Laggards are extremely important for a company especially during the decline stage of product life cycle. They can help to maintain the company's sales.
Laggards are the people who have best understanding of the services that a company provide. When they are loyal to the brand, they will give high recommendation to others and talk about the benefits for using fingerprint recognition payment system. This will contribute to good reputation of the company and can successfully increase the sales.
When customers only support a particular brand, they will be the loyal customer to purchase the products or services. Therefore, the fingerprint recognition system can have longer life to exist in the market.
Laggards are the main and most important resources to extend the product life of a particular product or service. For example, if fingerprint recognition payment system have laggards, they will promote the payment system to everyone who they know and more people will alert with the existence of fingerprint recognition payment and start to use it.