Effect of Product Life Cycle on Marketing
Marketing is an essential component in a profit-seeking organization. It is entirely difficult for an organization to perform well in a competitive industry without adopting an efficient marketing strategy. In this regard Thorr Motorcycles Company is concerned about the market performance of its newly launched product. The company is a leader in heavy cruise motorcycle, and it controls over 40% of the market share. It recently invested in producing the low capacity motorcycles and launched them on the market.
However, the launch and the ensuing competition to the new products did not respond well to the market. Consequently, the Chief Executive Benjamin Bao would like to get an explanation for the poor results of the company’s new products. It is necessary to establish the challenges experienced in the launch of the new products and give possible reasons attributable to the performance. The essay focuses on the effect of product life cycle on the marketing and the key issues to consider in steering a company towards a competitive position. Thorr Motorcycles failed to compete effectively in the low capacity motorcycle range because it adopted poor differentiation strategy. The new product had no significant differences from the competitors’ equivalent.
It created no influence on the purchasing decisions of the consumers. Lack of uniqueness in a new product cannot spark competition among companies ejoying market dominance in the manufacturing sector. Product differentiation plays crucial role in positioning a new product in the market. Established companies work tirelessly to frustrate new entrants by providing unique products of the same production line, and usually at the lower prices. Therefore, taking on an adaptable product differentiation enables a company to compete effectively in a particular market.
Nowadays, firms invest in the market research to enhance the product strategy: a force behind the realization and maintenance of the product differentiation (Sharma, 2009).Apart from adoption of poor differentiation strategy, other various reasons explain the failure of successful product reposition in the market. Inherent limitations in the marketing mix and inadequate planning failed the company to meet its expectation. The marketing department projected to take over 20% of the market shares of the low capacity motorcycles at the year-end. Moreover, the management failed to realize the projection due to its inefficiency in planning the marketing process. Adoption of poor pricing strategy is the main contributor in missing the market projection.
The company price was relatively high to its competitors due to the delusion of their reputable image in offering heavy capacity motorcycle brands. The management failed to realize the negative effects of setting high prices. Failure to visualize the effect of product life cycle on the maarketing department productivity by the management explains the adoption of poor pricing strategy. Another issue that failed the company to meet the market projection is inappropriate advertisement. Lack of advertisement in the product introduction stage failed to create the required awareness of the new product. Subsequently, efforts by the company to launch a new product created no impact in the low capacity motorcycle category.
Successful launch of the new product and its future development relies heavily on the acknowledgement of product lifecycle outcomes on marketing. Product life cycle dictates the appropriate marketing mix to spur the level of sales. There are four stages in the product life cycle: introduction, growth, maturity and decline stages. The four stages point to the marketers the type of marketing mix to choose. For instance, at the introduction stage the marketers should concentrate on the advertisement, pricing and promotion to acquire the projected market share. Thorr failed to adopt a suitable marketing mix at the introduction stage leading to failure of competing in the low capacity motorcycle class.
In conclusion, adopting a proper market mix and seeking adequate knowledge of the effect of the product life cycle on marketing is essential for the company’s survival. In addition, the company should focus on an apt product differentiation to enhance its competitive power.