DEPARTMENT OF BUSINESS ADMINISTRATION
BAYERO UNIVERSITY, KANO
MBA (REGULAR) FULL TIME
COURSE FACILITATOR: Dr. MUKTAR HALLIRU
BUS 8303: MARKETING
TITTLE: BIMCO MILK BACKGRAND HISTORY AND YORGHORT LIFE CYCLE
ABDUSSALAM UBA SULAIMAN
The concept of product life cycle is a useful framework for describing market evolution, but it is of limited practical value in the strategy formulation for management of a product innovation over its life cycle. The key problems are that one does not know precisely at what stage of the life cycle the product is, when the transition to the next level occurs, and the factors that affect the movement. Bimco milk is a sole proprietorship enterprises located at number zoo road, Kano. Produces different product range from the yoghourt, scathes juice, table water e.t.c, we select yoghourt brand as the subject of discussion in this paper. HISTORICAL BACKGROUND OF BIMCO YOGHOURT
Before the year 1990 there are limited number of companies that are producing yoghourt in Kano state. Bello Ibrahim Muhammad the chairman of Bimco Milk initiation buys the idea from Madara Limited VOM Jos plateau state, where he served as co-member of NYSC 1992 to 1993. he start the yoghurt production with the small amount of capital, the product at that time is unnamed and unpacked using family house as main factory where the actual production process taking place. By the year 1995 he name the product as BIMCO YOGHOURT representing his full name. later on register with corporate affairs commission Kano state, at the same year the product become the first yoghourt to register with NAFDAK in Kano. Additional capital introduce by 1995, this give the opportunity of building first office out side the home and start packaging the product in different containers which grand the chance of marketing the product in super market such as SAHAD STORE, KALAM STORE, YAKUBU VENTURES etc. the process continuous up to this present level.
BIMCO YOGHOURT LIFE CYCLE
Basically, the product life cycle is a pattern-based approach that indicates the trends in the product sales histories from their inception to their extinction. Knowing the pattern can assist marketers to determine how a particular product can evolve. The product life cycle goes through multiple phases, involves many professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do with the life of a product in the market with respect to business/commercial costs and sales measures; whereas product life cycle management (PLM) has more to do with managing descriptions and properties of a product through its development and useful life, mainly from a business/engineering point of view. To say that a product has a life cycle is to assert four things: 1. That products have a limited life,
2. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller, 3. Profits rise and fall at different stages of product life cycle, and 4. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life cycle stage. The different stages in a bimco milk life cycle are:
1. Market introduction stage
1. costs are high
2. slow sales volumes to start
3. little or no competition - competitive manufacturers watch for acceptance/segment growth losses 4. demand has to be created
5. customers have to be prompted to try the product
6. makes no money at this stage
2. Growth stage
1. costs reduced due to economies of scale
2. sales volume increases significantly
3. profitability begins to rise
4. public awareness increases
5. competition begins to increase with a few new players in establishing market 6. increased competition leads to price...
References: 1. MUHAMMAD, B. I . (2009) HISTORICAL BACKGRAND OF BIMCO MILK, ITS LIFE SPAN FROM INCEPTION TO DATE. Interview with group members
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