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The Product Life Cycle Of Pepsi-Cola

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The Product Life Cycle theory was developed by the economist Raymond Vernon in 1966 and this theory is a widely used model in economics and marketing. According to Raymond Vernon, a product has a certain life cycle. It begins with its research and development stage and ends with its decline stage. The product life cycle consists of four stages which are introduction, growth, maturity and decline stages. Millions of products are produced and consumed every year around the globe and these products have a life cycle. Existing or long-established products will become less popular and also the demand for new, innovative products will increase rapidly after they are launched. 2.1.1 Introduction After developing a new product, it will be introduced into the consumer market. Investments need to be made on advertising and other promotional channels to build up customer awareness. Profits…show more content…
This is a key tool for marketers to evaluate the progression of a particular product throughout its life. In 1898, Caleb Bradham who was a pharmacist in profession, developed a medicinal drink called ‘Brads Drink’. This was introduced by Caleb for aid digestion and consumers were interested in his product and then Caleb renamed the drink as ‘Pepsi-Cola’. 2.2.1 Introduction – 1902 Initially Caleb wanted to generate brand awareness among consumers and after started selling Pepsi-Cola he was able to exceed the targeted sales by selling more than 7,900 gallons of syrup in the first year. To create brand awareness, advertising and promotional activities was done with the appearance of Berna Eli "Barney" Oldfield who was an American pioneer automobile racer in 1902-1918. A basic product was sold only in Caleb’s pharmacies and a simple cost-plus pricing strategy was used at the initial stage. 2.2.2 Growth –
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