The paper “ Marketing Plan for Promotion of Gravity Lights - Product Life Cycle, New Market Entry, Growth Strategies" is an impressive example of a case study on marketing. The chosen product is gravity lights, a product that provides an alternative source of energy especially to individuals in remote areas or energy-sensitive people who prefer saving energy by using alternatives that consumes less from the atmosphere and emits almost no harmful gaseous to the atmosphere. Gravity lights work by converting mechanical energy to electrical energy and uses the energy for about 30 minutes.
A small load needs to be placed for only about 30 seconds for the lights to be on for 30 minutes. Mission statementThe aim of this analysis is to create effective market strategies that will ensure the success of the new product in the market. Product life cycleEstablishment stageThis is the first stage of the product life cycle which is mainly characterized by the introduction of the product to the target market. At this stage, the monopoly can be created depending on the usability of the product to its customers. Most firms normally attract losses at this stage; this is especially evident if the product belongs to a new class of products.
The users are not normally aware of the product and its usage, in order to gain a place in the market; companies invest in information dissemination strategies or promotional strategies in order for the product to be known. This stage is mainly characterized by low competition, loses and limited or no profit at all (Hellriegel, & Slocum, 2007, p. 34). Growth stageThis is the second stage of the product life cycle, it comes with the acceptance of the innovation in the market and profit as a result of increased sales starts flowing.
In the event that a monopoly exists, companies can commence experimenting with new ideas and innovation in order to ensure the maintenance of sales growth. At this stage, companies can introduce new and effective products in the market in order to create a lasting image of the product class Hielkema, 2012, p. 36). This will also play an important role as the competitors try to copy and improve the product. Maturity stageAt this stage, the sales start to slow down as the product has achieved its acceptance in the market.
Most new firms will try to become innovative by developing similar products in order to compete with the existing product. Since there are a number of companies now in the market with similar products, competition for customers increases tremendously. As a result of competition, the product profit declines and hence marking the beginning of the maturity stage. Decline stageThis stage is the last stage in the product life cycle and is market with declined rates of sales.
This is because many companies are now in the market, a factor that makes it hard for all the existing and new entrants to maintain sustainability in terms of sales levels. At this stage, the efficiency of the company plays an important role as well as the product class, the market at this stage may perceive the product as old and hence not in demand at all (Hollenbeck & John, 2006, p. 534). All these stages are necessary but may vary subject to the product, competitors and other external factors such as taxes.