Product Lifecycle Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    651

5Product Life Cycle

Product Life Cycle

Affiliation

Product Life Cycle

All products and services have a life cycle. The cycle explains all the stages that the product went through from the moment it was a raw material to when it becomes a product in the market. Rick Suttle, (2012 p.12), pointed out that in every year, about ninety five percent of the products introduced; do not survive in the market.Kit Kat Chunky is a product of nestle and was launched in the year 1935. The Kit Kat Chunky life cycle is divided into various stages which are characterized by the amount of revenue that it brings to the company.

Elliott et al, (2012 p.35) says that there are four main stages of the product life cycle. These stages are the introduction, growth, maturity and decline stages. There is no specific time frame as to how long the product life cycle will last.The graph below explains the product life cycle.

ntroductionGrowth Maturity DeclineProduct Lifecycle 4Product Lifecycle 3Product Lifecycle 2Product Lifecycle 1Product LifecycleI

Product Lifecycle 5

For the Kit Kat Chunky, its first stage was the introduction.This was when the product was introduced into the market and advertised in order to make the market aware of its presence. It was at the time named Rowntree’s Chocolate crisps.Next was the growth stage which came after the introduction stage. This is where advertising was at its peak. The producer marketed the product and mostly targeted consumers between the age of 12 and 20. This was because the sales of most products in this age group were mostly driven by habit. The company also used a lot of finances in order to market the product and for it to grow. This included the implementing of strategies such as advertising which led to increased sales. Kit Kat Chunky was also advertised as what active people needed. The third stage was the maturity stage. At this stage, the sales of Kit Kat Chunky increasedand stabilized. The product was now highly popular to people between the ages of 25 to 40. At this point the company had to differentiate the product from the competitors in order to target the young people who would ensure that the product remained popular. The final stage is the decline stage. This is when the sales will drop and profits will reduce due to new innovations in the market that will replace Kit Kat Chunky.

Dana Griffin, (2012) says that during the product life cycle, different promotional and distribution strategies are employed. For Nestle Company, at the introduction and growth stages, the main aim of promotion was to create awareness to the population about Kit Kat Chunky. The main aim of promotion at these stageswas to attract new customers and give them awareness of the product. At the maturity stage, the aim of the promotion strategy changed. It targeted stimulating repeat consumers in order to maintain sales even after the older population reduced.Distribution strategies also changed during the product life cycle. During the introduction stage, the distribution was patchy. Some distributors were not willing to risk stocking Kit Kat Chunky until it proved to be in demand. When the product entered the growth stage, the sales increased. This prompted the company to change the distribution strategy.Distribution was now intensive in order to cater for the increased demand. During the maturity stage, the saleswere at the peak and hence distribution wasrequired to be intensive. If Kit Kat Chunky goes into the decline stage, the distribution strategy will change and it will be selective only covering profitable outlets. This will help marketers plan strategies against challenges facing Kit Kat Chunky.

Reference

Dana, Griffin 2012, Product Life Cycle: Concept of Product Life Cycle, viewed 26 March 2012

<http://smallbusiness.chron.com/concept-product-life-cycle-1433.html>

Gregg,Elliott, S, Rundle & Waller, D 2012, Marketing: Interactive Study Guide,

<http://www.uwa.edu.au/MKTG2203.pdf>

Nestle Company 2013, Nestle Professional: The History of Kit Kat Chunky

<http://www.nestleprofessional.com/uk/en/SiteArticles/Pages/History_of_KitKat.aspx>

Rick, Suttle 2012, Product Life Cycle: Examples of Product Life Cycle Phases, viewed 8 January 2012

<http://smallbusiness.chron.com/examples-product-life-cycle-phases-13722html>