Branding and product life cycle Essay Example | Topics and Well Written Essays - 1000 words

Branding and product life cycle - Essay Example In this stage the products are newly launched in the competitive market place by the organizations. In this product life cycle stage, monopoly can be developed based on the demand and efficiency of the product. The organizations generally achieve losses rather than profit during this product life cycle stage. The organizations generally implement aggressive promotional strategies in order to create awareness about the newly developed product. This introduction stage has two characteristics, such as low competition and low sales growth rate. Growth Growth stage is the second common stage in the product life cycle model. This stage comes with the recognition in the competitive market. Profit of the products starts to flow from this stage. The organizations can try some new innovative ideas in order to maintain the sales growth of products. This growth stage is considered as the appropriate time to develop new competitive and effective price in the competitive marketplace. This strategy helps the organizations to develop a potential customer base for the products. Maturity Maturity is the third stage in the product life cycle model. ... It affects the sales of product. Several organizations try to redesign their products to secure market share and customer loyalty towards it. However, low profit margin, limited sales growth rate and implementation of new innovative models are the major characteristics of this maturity stage. Decline Decline is the last stage of product life cycle model. Generally, majority of the products dies in this decline stage due to huge low sales growth rate. Several organizations share the same market for a single product class. It is difficult for these products to compete with the new entrants. It is true that, market demand and needs of customers change constantly due to the organizations’ product differentiation strategy (Lamb, Hair and MacDaniel, 2008, p.30). This strategy reduces the demand of the existing products. Target customers generally perceive these products as the old and ineffective products. Therefore, people try to experiment with newly developed products in the mark et place. It is not necessary that, every product would go through this specific product life cycle stage. It highly depends upon the category of products, scope of that particular product and market competition. Question 2: Branding Strategies Branding strategy can be defined as the long term plan for a particular brand. It includes determination of potential target audiences and a significant understanding of the market demand and needs of target customers. Effective branding strategy helps to identify the brand and its experience. There are several branding strategies that have been implemented by the organization. This part of the essay will discuss about Company Name Branding, Individual Branding, Attitude Branding,