PRODUCT LIFE CYCLE

Product Life cycle of Sony CD Player



Product Life cycle of Sony CD Player

Introduction

Product life cycle was first studied by the example of branded goods. In the life cycle of the product reflected the changes of fashion, taste, style, technical progress, and technical obsolescence. The cycle can be found not only among brands and products, but also materials (natural materials, synthetic materials). Traditional curve includes distinct periods of introduction, growth, maturity, and decline. The duration of the life cycle as a whole and its individual phases depends on the product itself, and from a market. The general grounds of commodities have a longer life cycle, finished goods - a shorter, and the most sophisticated technical products - very short (2-3 years).

The life cycle of the same product but in different markets varies. Cigarettes in the U.S. at the stage of decline, as consumers are showing greater concern about health. In Japan, most European countries, Russia has a habit of smoking remains unchanged, and cigarette stay here at the stages of growth or maturity. Skin care; by contrast, are at the stage of maturity in countries such as Hungary and France, where women are more concerned about their skin because of cultural traditions. These products come in a stage of growth in the U.S., where women were later realized the importance of skin care (Kaplan, 2000, 11).Discussion

We will be considering an example of the life cycle of real goods phonograph records, audiocassettes, CD-ROMs. With the advent, of new technologies are experiencing a stage of decline records. In 1989, Companies sold less than 40 million records, while in 1977. Cassettes enter a stage of maturity of the product life cycle in 1988. The CDs are in the process of growth, with growth rates of sales increase. CD sales will increase, and growth may stop if the market will be new technologies such as digital film, providing a more uniform sound.Product Life Cycle

Introduction phase

This period is a period of moderate growth for the new product is gradually introduced to the market. During this period, the first customers are pioneers, and competition is sluggish. Promotional spending must be important to inform the consumer, the incentive to buy the product and ensure distribution of the product in as many outlets. The more a product is distributed, the visible by the consumer and therefore, will be better results at its launch phase.

Growth phase

This period is characterized by an increase in product sales with a favorable word of mouth brings new clients. New competitors also arrive on the market, attracted by the possibilities of development (which may even be beneficial to the product). During this phase, we must try to support growth as long as possible by improving product quality, expanding its range to reach more customers, increasing distribution, continuing communication campaigns, dropping low prices.

Maturity phase

This phase is characterized by a slower pace of sales of the product: it has reached maturity. On the other hand, competition is more intense than in previous stages the company must reduce its price. It is a phase longer than the previous two: the most common products are mature ...