OPM Case Week 3 Paper - 550 Words

OPM Case Week 3 Paper (Essay Sample) Content: OPM Case Week 3NameInstitutional AffiliationProduct life cycle is a marketing concept thatà ¢Ã¢â€š ¬s seeks to address the behavior of revenue from sales of a particular product over a period of time (Kotler, 2000). This period of time can be divide into introduction, growth, maturity and eventually decline depending on the return revenue a company gets from sale of the product. This concept applies to all products and its implications for a company cannot be overlooked.For this case of Regal Marine, this product life cycle concept plays a major role in avoiding losses and maximizing profits for a particular product in the market. This is made possible by understanding the timeline for which a particular product will be in the market to avoid unnecessary costs that end up as losses. These losses may be incurred by overproduction of products which spills into the decline period of a product in the market (Wiersema Marketing Science Institute, 1982). This is very crit ical to Regal Marine as production of boats is expensive and production into the decline period can result in major losses for the company.Since every product has a life cycle in the market, it becomes very important for Regal Marine to release new products into the market to avoid becoming obsolete. However, this release of a new product must be correctly timed to coincide with the decline of a former product. This will provide the consumers a newer and better alternative not forgetting a contribution to a fast rise in sales of the new product. This in turn raises the return revenue of a product and enables the losses and cost incurred in production to be recovered and profits realized.Regal Marine applies the differentiation strategy to remain competitive in the industry. This is where a business entity creates a product or service that is perceived to be unique in the industry and that customers can relate to (Porter, 1980). Also, it involves applying features that are unique to a particular manufacturer that are not easy to imitate. This has been achieved through creating a brand image and boats with unique and innovative designs that are of high quality. This strategy to some extent relies on customer loyalty to a particular brand and willingness to pay more for the additional features that differentiate it from the generic and non-differentiated products (Peter, Olson, Peter, 1990). This strategy method eventually leads to a reduction in price elasticity which emanates from customer brand loyalty. It also eradicates the need to be a low cost producer which allows for production of high quality and classy boats. This strategy cuts out a niche for Regal Marine as a high quality manufacturer of boats in the industry (Paley, 2006).Regal Marine has clearly ripped out a lot of benefits from the Computer Aided Design (CAD) technology and enhanced their production of boats. The CAD technology has greatly helped in reducing the time needed to design a new boat d esign. This is due to the speed at which CAD technology enables the design engineer to come up with new boa...