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Product life cycle (PLC) - Assignment Example
Author : hwolff
Pages 5 (1255 words)
Name Lecturer Subject Date Product life cycle (PLC) I have chosen the food and beverage industry. I believe that companies in this industry face numerous challenges, for example, the stiff competition in the industry. Another key challenge is the ever-increasing regulatory requirement…
Introduction Stage Pepsi Next is a beverage drink manufactured by Pepsi. Pepsi introduced it into the United States market in 2012, and therefore, it is at the introduction stage. Ever since, Pepsi has introduced the product to the international market. The company had a strong launch for the product. This shows it commitment to making the product globally recognizable. Its target market includes lapse cola drinkers. According to Pilger,”the company had lost a significant number of cola drinkers to competitors and the main aim of Pepsi Next was to win them back” (54). The company used “drink it to believe it” tag line in launching the product. The philosophy has worked well for the company. In terms of promotion mix, the company applied television adverts, direct mail, digital marketing, and heavy free trials. The product is at the introduction stage because of the high cost per a new customer acquired. The high cost is associated with the marketing costs, for example, the heavy free trials. The company offered free samples for the product including the over 800 Wal-Mart stores. Although the company’s top leadership believes that the product has performed beyond expectation, it has registered low sales. For example, because of a strong launch and promotional activities, the product had acquired a market share of 1 percent. ...