1. Develop a revised international product life cycle plan. Introduction Phase
The introduction phase is when the public first sees or hears about a product. The product appears in stores for the first time, and people start seeing print and television ads. As the global manager of a retail company, the prices of product will be set high to recoup initial expenses that went into producing the product. For innovated products, a retail company with new products could introduce products 10 percent to 20 percent above the prices of same kind of products. The higher price is because of the hype and anticipation of the new technology (Doha, Das & Pagell, 2013). For the same products, company could gain new customers through reducing price. Growth Phase
The growth phase is when sales and profits for the new product start rising. A company will usually keep product prices about the same during the growth stage to maximize earnings. Product quality is also maintained. However, a company will usually expand its product distribution during the growth stage. To increase marketing share, the stages in growth phase includes 1) providing new customer service, such as free guarantee for three months; 2) increasing number of outlets and stores in main cities of China, like Beijing, Shanghai, and Guangzhou, and 3) a set of promotion strategies, such as increasing advertising through TV, magazines and radio. Maturity Stage
Success inevitably leads to increased competition. Other companies eventually will start introducing similar products, especially if the initial product is highly successful. Consequently, the demand for the product and its competitors will peak at some point. Sales growth will start to decline. The plan in maturity stage are following: 1) developing new product features to differentiate its products from the competition's; 2) enhancing its customer-service department to establish itself as the service leader...
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