Product Life Cycle
The product life cycle of the self-service vending machine is dependent upon many variables compared to the human condition of aging. The vending machine will be born or introduced into new markets in order for the organization to expand its sales volume and ultimately its profit. The company will focus on differentiating its new product from others by promoting its two main attributes; convenience and saving the end-user money. The company will promote its products in the new markets by advertising. Companies use the approach to create brand awareness and entice independent distributors to purchase the machines and in turn lease them to the public. The self-service vending machine will have its birth announcement in each new market and price setting will be commensurate with demand.
With any newborn the next stage will involve growth. The authors of this paper are taking the position this product will be successful in its new markets. The manufacturer will raise prices because of increased demand. The demand from new distributors will increase and this will in turn increase lease rates at the end-user level. Both the distributor and the manufacturer will have additional funds for advertising to build brand preference. The manufacturer will focus its distribution channels to equipment wholesale distributors who in turn will focus their distribution channels on the vending machine operator or the vending machine site owner. The manufacturer estimates the growth stage duration to be short as the product is not complex and the end-user receives an immediate economic benefit.
The maturity stage also known as the “over forty crowd” to some records sales at a more slowly pace. The vending machine no longer requires an extensive promotional push. The brand is well known and advertising costs can shrink. Reduced costs result in greater profits. The manufacturer will focus on modifications to...
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