product life cycle
DESCRIPTION
Marketing ProjectTRANSCRIPT
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MM 2711 – Introduction to Marketing
Team Members
Balduin Metz
Chan Wing Yee 09174543d
Christian Beshold
Kwok Jo Ho
Mark 07865182d
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IntroductionProduct life cycleGolf mk 6
Product life cycle of mk 6IntroductionGrowthMaturityDecline
Conclusion
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Manufactured by VolkswagenIntroduced for sale in UK in Jan 2009Improved 20% in productivity
More aerodynamic helping fuel efficiencyQuieter
Allow to choose different modesNormalComfortsports
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Characteristics:• 1st stage of the product life cycle• Only a few products are launched • Low profits• Few competitors
Marketing effort:• Inform and educate customer• Increase the market share• Increase the number of distribution channel
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Product• Introduce a product that may
impact the market• Lack of competitors • Product performance may not
be the best• No other similar product in
market
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Place• Only few distribution channels• Number of distribution channels increases
rapidly
Price• Usually under market expectation• Slightly adjusted in response to customer
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Promotion• Inform customers of the new product • Use product to build up brand image• Increase the numbers of distribution channel can
be a kind of promotion• Normal ways – Magazine, TV commercial,
website…etc• Not aim at boosting sales
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Characteristics:• Demand and Sales volume increase significantly• Profitability begins to increase• Public awareness raised• Competitors start to enter the market
Marketing effort:• Gain market share• Boost sales
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Product
• Increasing interior and exterior varieties (textiles, colours)
• New variants for segmentation of the markete.g. sport versions like Golf GTI and R32
• Differentiation to competitors through technology BlueMotion, Safety
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Price• Maintained at a high level if demand is high or
reduce to capture additional customers • New versions highly priced
Place• Car dealerships• Extending the sales to different countries• E-Commerce (Car Configurator)
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Promotion• TV Commercials• Magazines, Newspapers• Free test drives• Billboards
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Characteristics:• Most profitable stage• Costs are lowered as a result of production volumes
increasing, experience curve effects and lowering advertising expenditures
• Sales volume peaks and market saturation is reached• Many competitors
Marketing effort:• Defend market share through differentiation• Maintain brand loyalty
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Product• Offer full product line• New car body variants like Golf Estate or Golf Plus for
families or travelling salespersons• Provide highest variety of interior and exterior
options to give the customer the opportunity to customize his car
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Price• Decrease in prices for the original golf through competition• Special (financial) offers to obtain market share for the
original golf• High prices for new car body variants golf plus and golf estate
Place• B2B and B2C • Maximum outlets and car dealerships• Extend sales to driving schools or car rental companies• Incentives for retailers to hold market share
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Promotion• Reminder oriented advertisement for the
original golf• Strong advertisement for the new variants• Promotional campaigns for the whole “golf
family” to build brand loyalty
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Characteristics:• Last stage of the product life cycle• Profits continue to fall• Discontinued product
Marketing effort:• Reduce expenses• Milk the brand
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Product• Reduce product line• Only produce the popular type
Price• Lower down the price• Some discount
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Place• Close up some retailer shops. Can be sold in other
manufacturers' retailer shops.• Online shop to reduce cost
Promotion• Get a new one by returning the old one• Some meaningful gift• Limited items from the company• No adds on TV or newspaper. Only in the retailer
shops
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Modify product characteristics in maturity stage stimulate sales
Quality improvementsEnginesSafety measures
Feature improvementsDifferent modes: normal, sport, comfort,
Style improvementsDifferent colors, designs
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http://blogs.venturacountystar.com/motorhead/2007/12/
http://www.thatsoftwareguy.com/zencart_discount_preview.html
http://www.youtube.com/watch?v=AyvNIU6t6T8http://www.docstoc.com/docs/22483699/
PRODUCT-LIFE-CYCLEhttp://www.volkswagen.com/vwcms/
master_public/virtualmaster/en2/models/golf_start.html
http://www-rohan.sdsu.edu/~renglish/370/notes/chapt11/life_cycle_01.gif
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