Question

The new Fresh-Cola product by Fresh-Cola Inc., a manufacturer of carbonated drinks, has just been introduced. What patterns develop during this phase of the product life cycle?

Answer 1

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If Fresh-cola, the product by Fresh-Cola Inc. has just been introduced, then it is going through to introduction face in the product life cycle. Patterns that developed during this phase is as follows:

1. Low sales level: as the product has just been introduced, and many people don't know about it, the sales level of the carbonated drink would below.

2. Increase promotional expenses: in order to make the target market aware of our product and in order to attract them towards our product, there would be huge promotional and advertisement expenses.

3. Lower prices: since there is already a huge amount of competition in the market is prevailing, in order to attract customers the prices would be set lower as per the market penetration model.

4. Low profits: profits would be low because of low sales and heavy expenses show the company can suffer losses at this stage.

5. Lack of knowledge: the customers and the target market lacks knowledge regarding the new product, even if they have the knowledge, they hesitate to buy because of no reviews and goodwill.

6. Narrow product line: The product line is narrow because the risk of its success as a reputation and Goodwill is not achieved.