The product life cycle is divided into several stages depending on the revenue generated by the product. The duration of the cycle depends on the type and use of the product. The incubation stage is when product development takes place. At this stage, the product does not generate any revenues, as there are no sales. The next stage is the introduction stage this is where the product is introduced to the market, and sales at this stage are low as clients are not so far aware of the manufactured goods. At this point, advertisement costs are high, and the company incurs additional costs because of the initial distribution. This is a period of negative profits. At this stage, the primary goal is to establish a market and demand for the product. The growth stage is characterized by increased sales and rapid revenue growth. It is at this point that distribution could be increased. At this stage, the goal is gain consumer preference and increase sales. The maturity stage is characterized by super normal profits, while sales may continue to increase, they do so at a decreasing rate. However, the brand name at this point is strong, and advertisement costs are low. Finally, the decline stage where sales begin to decline this may be because of product saturation or change in consumer preference. If the business has developed brand loyalty, it will still maintain its customers (Business Knowledge Center, 2010).
Toyota Prius is at the growth stage while Blue ray discs are at the introduction stage. These two products are facing a different market. Toyota has gone through the introduction stage where instead of distributing the cars to the dealers they opted for a different marketing strategy instead of distributing to the dealers directly, they opted to take the dealers receive orders from clients and then distribute the cars from a centralized inventory. Since it is at the growth sage, the demand of the Toyota Prius is so high that, they have been incapable of meeting the demand at some point. They are being sold at higher prices than they had initially. At this stage, Toyota is considering manufacturing its hybrid vehicles such as the Prius in America and going back to using dealership-based placement. It is continuing to work on the product growth of the Toyota Prius and aims take the lead in the next generation hybrids (Toyota Prius group team post, 2005).
Blue Ray, on the other hand, being at the introduction stage in a competitive market is using coupons that customers can use to get massive discounts ion the price of the blue ray. The most popular is the buy one-take one coupon, and the offer lasts for a period of one to three months. These coupons enable the customer at special retail shops to be provided with another Blue Ray disc free of charge after buying the first one. Other coupons provide discounts to customers of anywhere from 10% to 100%. In addition, those who buy Blue Ray disc players or camcorders are entitled to free discs. Favored and repeat customers are also provided coupons, which are rewards after gaining points from the retail shops (Blue Ray, 2008).This has seen Blue Ray disc sales increase and start gaining a customer following. While Toyota is trying to retain its already acquired customers, Blue Ray is trying to gain customers.
Business Knowledge Center. (2010). The Product Life Cycle. Retrieved from
http://www.netmba.com/marketing/product/lifecycle/
Toyata Prius group Team Post. (2005). Retrieved from www.mktg411.com
Blue ray. (2008). Blue Ray coupons. Retrieved from http://www.blue
raysite.com/blue_ray_coupons.html
