Francis Bukenya & Paroma Enterprises Limited have finally introduced ASP products in Uganda, Kenya, Tanzania, South Sudan, Rwanda, Burundi, Congo and Zanzibar. PRODUCT LIFE CYCLE: Development In the development stage, the product goes through testing and a prototype is developed. This is after considerable market research to identify consumer needs and wants. If the product is deemed commercially viable, then the product may be put into mass production and launched. It is important to remember at this stage expenditure for the company is high. No income is being received as there are zero sales. This is the first stage of the product cycle lifespan. Introduction Introduction is the stage in which a new product is first made available in the market. In the introduction stage, customers are few, competition is less, sales are low, risk is high and profits are low or nil. There are heavy distribution and promotion expenses. This stage is full of risks and uncertainties. prices are also high because(1) costs are high due to low level of output.(2) technological problems in production may not have been solved, and(3) high profit margins are required to support the heavy promotion expenditure. the product at the introduction stage requires high activity in promotion. Growth If the product is popular with consumers, then sales will start to rise. It may be a rapid growth or a slower one. Rapid growths that fall away just as quick are called Fads. That process is known as Growth. Advertising is often still heavy at this point. Maturity Once the product is well established and consumers are satisfied, then the product is widely accepted and growth slows down. Before long, however, a successful product in this phase will come under pressure from competitors. The producer will have to start spending again in order to defend the products market position or introduce extension strategies. It may only be in the Maturity stage where companies will receive a return on their original expenditure and investment due to potentially high start up and development costs. Saturation: At the very end of the Maturity stage, and where there is no further growth possible, saturation occurs. This is also referred to as Saturation Point. This is when little or no advertising is needed and sales are leveling off. This is the period of stability. During this period, the sales of the product reaches the peak. There is a steady demand for the product and no possibility for growth. However, at this stage other competitors also become popular and capture the market. Decline Sooner or later sales fall due to changes in consumer tastes or new choices available from competitors products. Again, extension strategies may be open to the company to keep the product alive. The product can be declined if there is no proper growth and the later stage which has been discussed above
Posted on: Thu, 22 Jan 2015 05:41:48 +0000
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