Date: 5 June 2015
Course: MKT 571
Instructor: John Hawes
SIMULATION TITLE: Product Life Cycle
SIMULATION DESCRIPTION: Holden Evan is creating its own brand of hot sauce, Burnin\ ' Rock, using exotic peppers sourced through fair trade. As product brand manager, your task is to successfully introduce the new product into the marketplace, and manage the brand through the product life cycle.
You earned 100 percent.
You chose to place Burnin\ ' Rock in health food store chains and the organic food sections of supermarkets. This was the best choice for reaching your target demographic.
You chose to use the best ingredients. This was the best choice, since it was consistent with the product…show more content… What would be a reasonable figure?
Now that you are in the growth stage, how should you adjust the amount of your budget for promotion, compared to the launch year?
Keep promotion spending the same
The CMO is pleased so far and wants to know how you plan to adjust prices in response to growth.
Keep prices the same
Now it\ 's year three. The CEO wants to know your plan for sustaining market growth.
Create new lines of the product, such as different flavors and different degrees of heat.
The CMO is pleased. \"You\ 've achieved sales of $32 million a year, with profits of $9 million a year. Great job! You\ 'll be getting a big bonus this year.\"
It\ 's five years later, and sales have reached a plateau. The product is clearly in the maturity stage. What should you do to increase sales?
Modify the market by finding new users for the product.
Burnin\ ' Rock has reached maturity. Sales growth is slowing down. Competitors are numerous and have introduced products that are better, or cheaper, or more aggressively marketed. What will you do to keep sales up?
Find alternative markets and new customer uses for Burnin\ ' Rock.
After some market