Pepsi Product Life Cycle

The product life cycle has to do with the life of a product in the market with respect to commercial costs and sales measures . When we say that a product has a life cycle it means that the product sales pass through different stages and that profits rise and fall.
The product life cycle takes place over a variety of stages. For this essay, the example of a new flavor of Pepsi will be used, and the first stage is the New Product Development Stage. At this stage, this product is being brought to existence after ensuring that the product will be something that people will be interested to buy. At this stage, this product (just like any other product in this stage) does not leave any profits as it is still being created and therefore, there

The costs begin to lower due to economies of scale and the general market is aware and starts to accept the product. Profits grow and the initial costs of producing and promoting the product are covered. The competition may start to increase, with for example Coca Cola also producing a new flavour to compete with the Pepsi one. The product is therefore further improved, and the price is maintained as there is an increase in demand. In addition, the promotion is aimed at a wider audience as people already have an idea about the product through the opinion leaders. There might also be personal selling to ensure that the consumers buy the new flavour of the Pepsi, and not the Coca Cola’s. More distributers are also ready to distribute your product to a wider circle of target

This is when customers choose a different flavour with only some customers staying loyal to the product. The sales volume decreases and companies start to drop out of the market as there are no more profits for them. At this point, the product is harvested by reducing costs and is generally offered to niche markets instead. The price will be maintained to ensure that costs are covered, but profits are not usually made. The Promotion is also aimed at saving the product’s reputation and reinforcing the brand image. The distributors are also quite selective as the marketers need to ensure that the few loyal consumers left get their products.
There are also a lot of benefits for using the Product Life Cycle as a marketing strategy. This system helps companies in the planning process, as the company can know how many funds they will be spending in accordance with the stage the product is in. If, for instance, the product is in its decline stage the manager will be able to eliminate unprofitable distributions to minimize