Question

John Verdes Electric is about to enter Ghana with their electronic appliances. Discuss with him what strategies he should adopt at each stage of the Product life Cycle in view of the high competitive environment.
Explain how and why the approach to pricing changes during the product life

Answer 1

Strategies that John Verdes Electric to enter Ghana with their electronic appliances-

1. Introduction- At the introduction stage, the company should look to integrate suppliers by providing them with trade promotion and sales promotion schemes. This will be a market penetration strategy where the company will look to strengthen long term relationships. Also, Digital marketing campaigns will be an effective mode to reach the target consumer.
2. Growth- For this stage, the company should opt for aggressive sales strategy. A mix of advertising, sales and trade promotions would be effective in this stage. The company should also opt for an effective CRM strategy in order to nurture relations with existing customers.
3. Mature- After entering mature stage, in order to maintain competitive edge, investment in R&D and providing an USP as compared to the competitors would provide an immense opportunity to capture the competitors market share.

Approach to pricing changes as we enter different stages of product life cycle because the company's value that they offer changes. In the first stage they look to onboard new customers, during growth stage they seek to gain competitive edge over competitors and hence pricing change but as soon as they reach mature stage emphasis is greatly on new products and new market development and hence the cost incurred by company shifts to different segments.