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market life cycle stages. The Nike Company primarily operates within the shoe apparel industry and is an established company. The company is in the growth and maturity stage.
Pace. The product life cycle needs to be viewed as a dependent variable, which is determined by marketing actions. (Clancy & Krieg, 2004). The new product, the skin, will move through its own life cycle at a faster pace than other company products on the market. The reasons for this are due to consumer loyalty and financial resources impacting the movement. Nike has enough resources at their disposal to move this product quickly. The Nike brand is well known and trusted by many consumers. The years of trust will help the marketing department move this product faster than a start-up company would move.
Movement Factors. Nike will be able to penetrate the market during introduction by using low prices. The competitors may be held back longer by this type of strategy. The competitors will continue to try to catch up and the marketing department will need to stay one step ahead of the game. During the growth stage, the profits will go up and down.
Big profits will be made as more consumers buy the new product but competitors will see the opportunity to enter the market (Perreault & McCarthy, 2004). In the growth stage, marketing will be geared towards improving the quality or adding more features. Nike will need to keep up with the new competitors entering the market, so they are not left behind.
Marketing Impact. Once the skin has reached maturity, the sales will level off. Promotion techniques will become more aggressive to fight competition (Perreault & McCarthy, 2004). The marketing strategy will need to keep adjusting to address new target groups. Nike can look to an international level if the product succeeds in the home country. Another option to keep the product in growth and maturity would be allowing other companies to use the rights to the new product.
If Nike markets...
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