Product Analysis Theory Of The Airline Industry

A life cycle diagram helps businesses analysis their attempt to identify a set of commercial stages in the life of commercial products, for example, introduction, promotion, growth maturity and decline.

The product life cycle is known as the procedure where a product is introduced to the market, expands in popularity,

The impact of product life cycle on marketing is that corporations must always plan products and offerings according to the life cycle. Especially in the durable goods market like motorcycles it is imperative than a manufacturer know the product life cycle in order to maintain market share or grow. In order to maximize life cycle revenues the company must maximize revenues and profits from all sources including warranties, spare parts, and accessories. Service is an integral part of a long product life cycle.

All products have a lifecycle. They begin as an idea that needs Research and Development (R&D) or time to develop. This is a direct cost to the company. Once the product and/or service is ready to be marketed, it goes through five stages: development, introduction, growth, maturity, and decline.

During the next stage, maturity, there is intense rivalry for a mature market. Efforts may be limited to attracting a new population, leading to a proliferation of sizes, colors, attachments, and other product variants. Battling to retain the company’s share, each marketer steps up persuasive advertising, opens new channels of distribution, and grants price concessions. Unless new competitors are obstructed by patents or other barriers, entry is easy. Thus, maturity is a period when sales growth slows down and profits peak and then start to decline. Strategy in the maturity stage comprises the following steps: (a) search for new markets and new and varied uses for the product, (b) improvement of product quality through changes in features and style, and (c) new marketing mix perspectives. For the leader firm, Step c may mean introducing an innovative product, fortifying the market through multibrand strategy, or engaging in a price-promotion war against the weaker members of the industry; the nonleader may seek a differential advantage, finding a niche in the market through either product or promotional variables.

• Provide background on the global industry • Present a regional analysis • Discuss current and future evolvement of the industry (trends) • Discuss challenges and strategies impacting the industry • Discuss the new breed of airlines • Discuss why airlines fail and how to achieve success

Production: This is the processes of changing raw materials into finished goods to be sold to the customers (Dougsguides, n.d.).

Third, the effects of the product life cycle, which is “Four distinct but not wholly-predictable stages every product goes through from its introduction to withdrawal from the market: (1) introduction, (2) growth in sales revenue, (3) maturity, during which sales revenue

Buyer power has changed significantly in the airline industry over the last 20 years due largely to industry deregulation and technological innovation related to the impact of the Internet. Prior to deregulation, the Civil Aeronautics Board’s control over pricing and airline routes gave the consumer very little power as it did not provide the choices of unregulated competition. If consumers did not like the prices available for air travel, they were forced to look for substitutes, none of which offered a similar value proposition as the airline industry.

The product life cycle is an important concept used in marketing. It’s about identifying the stages a product passes through from when it was initially an idea to when it is removed from the

Product life cycle refers to the stages that a product. Changes in demand for the product is the factor that delineates the changes from one cycle to another (Daft & Sanders, 2012). The typical product life cycle has four identifiable stages;

Meanwhile the external analysis refers to the people and the process that are outside the organisation and it most unlikely that this factor can be controlled by the organisation. External Analysis can be assessed by using PESTEL.

Phase 2: Engineering and Manufacturing Development. Definition of the requirements and the technical standards for the purchase of the new aircrafts.

For the comparison of Doganis? five key product features, the Ireland based low-cost carrier, Ryanair will be compared to the German based, full-service airline, Lufthansa. Both airlines will be using a city-pair from Dublin to Frankfurt for the basis of the comparison in airfare. Since, Ryanair only offers a single fare for their seating class which is Economy, that is in accordance with most low-cost models and Lufthansa offers First, Business, and Economy classes, only Lufthansa?s economy class pricing will be used is used in this paper. Lufthansa uses a three tiers system for their economy class, with each tiers offering different cost structures based on the prices of the fare, which is based on options available. The tiers consist of Economy Light, Economy Classic, and Economy Flex, to stay close in accordance with Ryanair, the Economy Light class offered by the carrier will be used since the cost structure for this seating allows the passenger the same amenities as the low-cost carrier.

Today in the ever changing and volatile industry that is aviation every action taken has a significant impact on not only your business but also the competition and stakeholders. With any competitive market player in the aviation industry every decision made is a critical one, and behind any decision will be a strategy. These decisions and strategies implemented will put the airline, airport or manufacturer into one of 4 key strategic positions. The business will either be; the leader, usually the biggest with the most funds. The challenger who’s trying to become the next leader. The follower, who as the name implies follows the leader and challenger in focusing on a market share. And Finally the Niche who has a very specific, yet profitable market often avoided by the big players. All of these strategic positions work in their own right and have advantages and disadvantages to them, hence why an airlines strategy may change many times over the lifetime of the carrier.