Essay about Product Life Cycle

Increase in sales by using the same sales channels, offering more styles, and increase presence in new markets for AGI products.

When a business can provide a lower cost, then the business can have the ability to lower their price. Providing a better pricing system, along with sharp value products can only increase the chance of growth and customers’ overtime.

The company is looking to increase profitability and find a long-term solution to the inventory problem.

A company would have to use strategies outside of price to lure consumers in such as aggressive advertising, better customer support, market saturation,

Lastly, the company suggest to expand their current inventory through increasing production and capacity. With the increase in production rate the company can gain more consumers as a whole through supply and demand. Doing this would give the company an opportunity for more exposure and perhaps better brand recognition.

* Acquire higher amount of shelf space to distinguish itself away from the competition, this can be done by utilizing promotional allowances to create discounts.

· This leads to cost cutting for marketing techniques as we don’t have to target whole market

* Higher sales volume in wider location and hence higher profit (distributor require either high volume sales or high advertising, hence if tied up with any one distributor, the sales target might go high requiring the company to be more competitive)

Develop an increase in sales while achieving a status quo state or decrease in marketing expenses.

The introduction stage is when a new product is made and it is lunched into its new market. Some problems that people face in this stage is people don’t know what the product is or they don’t know what it does. So most of the money in this stage is spent on explaining to people what they product does. In the growth stage the market is starting to like and accept the product and sales start to grow. Problems that people run into hear is the sceptics people who don’t believe in the product or don’t see a need for it. So to solve the problem is showing and convincing these people of the need and why it will help them and make their life easier. The maturity stage is when people know of the product and what it does. In this stage this is when sales will reach its peak. Some problems in this stage is up and coming products that are similar to yours and could do more then your product and offers more of a need. So to solve that problem innovate your product. Don’t get complacent at where you are with the product keep evolving the product and keep making better and more appeling. Then there is the decline stage. In this stage the product had become old something better has been created or come a long. This is when sales start to fall. To solve this problem is creating a new product or make server changes to the existing product that makes it better then the

Based on pricing our product, after we see that our competitors were undercutting us on price in the Low-End/Traditional and meeting the demand increased, we lower our price and at the time of their stock out, we get to take their potential market share at a higher profit level.

• Expand the limited advertising program for current niche market products to retain and gain market share.

Another form of change comes from introducing a new product line. As a result of market demands or diversification measures, changing the product line increases profit as well as market

Price, which is one of the most important elements of the marketing mix, can be difficult to get right. Pricing too high, or low, can negatively impact on customer satisfaction and revenue. Adopting a pricing strategy is necessary to achieve desired sales objectives (Chan & Wong 2005).

➢ Product differentiation - Products that are relatively the same will compete based on price. Brand identification can reduce rivalry.