Product Life Cycle Analysis Essay Example

to a different product.

Although the decline in profit for companies may be unavoidable, there is still a possibility for them to generate some profit by transitioning to less costly production methods and cheaper markets. To better illustrate the different stages of the product life cycle, examples of various products can be provided. One such example is the process of watching recorded television, which goes through different stages as outlined below, including the respective methods used:

1. Introduction - 3D TVs
2. Growth - Blueray discs/DVR
3. Maturity - DVD
4. Decline - Video cassette

The concept of the product life cycle has been present for a while and is crucial for manufacturers to grasp in order to be profitable and sustain their business. However, successfully manufacturing products requires not only understanding this life cycle but also actively managing them throughout their lifespan by utilizing appropriate resources, sales, and marketing strategies based on the product's stage in the cycle. In the modern Product Life Cycle (PLC) model, there are three stages: Introduction, Peak Point, and Existence/Replacement. This portrays the life cycle of a product in the contemporary era. It is introduced and quickly reaches its peak point due to high demand but soon declines and exits the market. Examples of this modern PLC can be seen with newly arrived products in retail stores or trendy mobile handsets. One such example is Micromax mobile, which introduced and discontinued over 50 varieties of its mobile handsets within one year (2010) in the Indian market.

In 2010, Nokia launched its E-Series which initially gained popularity but later declined in the market. In the same year, Bajaj introduced the Discover 100 cc bike and quickly captured a significant portion of the market within two

months. By September, they also introduced a 150 cc version. Currently, new products experience rapid growth followed by decline due to factors like changes in customer buying behavior, fashion trends, increased competition, availability of alternative products impacting brand image, and introduction of replacement goods. Hindustan Motors' Ambassador model serves as an example of a product in its decline stage. The company aims to boost sales by introducing a new fuel-efficient engine that complies with emission norms.

Hindustan Motors intends to invest Rs 6 crores to upgrade engines in order to comply with BS-3 regulations, increasing the mileage from 11 km/l to 16 km/l. The new model will undergo several changes. Additionally, HM has introduced a buy-back scheme where customers can exchange their old Ambassador models for the new one at a discounted price of Rs 35K. The production of this 50-year-old model currently takes place in Uttarpara, Kolkata. It is available with 1.5L CNG and petrol versions, as well as 2L diesel engine variants.

At present, the car has the majority of sales in Delhi, West Bengal, Tamil Nadu, and Kerala. It currently has 110 dealers located across India. The car offers unmatched space, comfort, safety, and sturdiness while also being fuel efficient. Despite once being the leader on Indian roads, the Ambassador has been overshadowed by newer Japanese, Korean, European, and American cars. Hindustan Motors, the manufacturer of the car, has made efforts to reinvent it as a contemporary classic similar to Enfield (Bullet) motorcycles, with less success.

Despite my confusion, I have noticed that they continue to sell a few thousand cars annually. I don't understand why anyone would desire an AMBY, except for nostalgia. During

my childhood, it was considered the ultimate car to possess. It was more affordable to maintain than a Fiat, had a superior turning radius of 5.4m, had versatile capabilities, could accommodate more passengers and luggage, and most importantly, could be fixed by a roadside mechanic! It seems nobody had heard of the concept of regular car...