Product Life Cycle of Nokia Nseries Mobile Phones

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Product Life Cycle of Nokia N-Series Mobile Phones

Table of Contents

The Product Life Cycle
Introduction……………………………………………………………………. .2 The Product Life Cycle of Nokia N-series mobile phones……………………….3 Advantages of the Product Life Cycle…………………………………………...7 Disadvantages of the Product Life Cycle………………………………………...7 References………………………………………………………………………...8

The Product Life Cycle: Introduction

The product life cycle is defined as a generalized model of the sales trend of a product class or category over a period of time and of related changes in competitive behaviour (Buzzell, 1966). In order to accommodate the product life cycle as a predictive tool for a product marketing outcome, Scheuring (1974) proposed two main factors that could affect the application of the product life cycle. The first factor is the effect of population growth change, and the level of personal consumption. Secondly it is necessary to be clear on the product type involved.

There are five stages of the conventional life cycle of a product, namely; product development, introduction, growth, maturity and decline.

Fig. 1: Product Life Cycle (William, D. and McCarthy J. E.)

The Product Life Cycle of the Nokia Nseries mobile phone will be discussed in the section below.

Product Life Cycle of Nokia N-series Phones

The Nokia N series is a branded range of mobile phones. This product consists of the N70, N90 and N91. Nokia N-series is the predecessor of new mobile product groups through the an attractive designed, and simple device. The Nokia N- series phones support print-quality photography and high quality video recording. In addition, Nokia N-series mobile phones offer a rich music experience. The Nokia N-series range is a good choice for consumers who want to be mobile having a portable gadget with an elegant design at that time.

The Development Stage of the Nokia N-Series
The product development phase starts when the company finds and develops a new product idea. This involves processing various pieces of information and incorporating them into a new product. A product undergoes several changes involving a lot of money and time during development. It is then exposed to target customers via test markets. Those products that survive the test market are then introduced into a real marketplace and the introduction phase of the product begins. During the product development phase, sales are zero and revenues are negative.

The Introduction Stage
Prior to 2005, Nokia was making conventional phones mainly for texting and voice calls. The internet ages led to the necessity of a gadget which can be used to access the internet. To fill this gap, the N series was born. The first set of N series phones comprised of N70, N90 and N91.

All were introduced at the same time, having slight variations in their features. Like any product at this stage, huge investments had to be made to get the product into the market with only a small percentage of the investment being realised. Even though the N70 was more successful than the other two models, the total sales figures showed an overall increase.

Year| Sales Volume(10,000)| Growth Rate of Sales Volume(%)| 2000| 3029.5| 41.3|
2001| 4601.6| 51.9|
2002| 6247.4| 35.8|
2003| 7378.6| 18.1|
2004| 7869.6| 11.9|
2005| 8806.1| 6.7|
2006| 11932.6| 35.5|
2007| 14813.2| 24.1|

Tabe 1: Combined Sales Volume of Nokia N70, N90 and N91 from 2000 – 2007 (http://press.nokia.com/PR/200504/992467_5.html)

Fig 2: The Product Life Cycle of Nokia N-series (N70, N90 and N91) mobile Phones (http://press.nokia.com/PR/200504/992467_5.htm)

The Growth Stage
The growth phase offers the satisfaction of knowing that the product is growing in the marketplace. This is a suitable time to...
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