The characteristics of a growing and a mature product market Essay

The characteristics of a growing and a mature product market - Essay Example Under this phase, there are rapidly rising sales volume and profit, and the overall-growth is at a very fast-paced manner (Kotler, 2002, p.173). For example, consumer electronic markets, particularly entertainment devices, are in the growing product market. Portable DVD player is the hottest, trending category and â€Å"derives its popularity from its portability and compact size† (Atico International, n.d.). It also constitutes an annual growth rate of 25% in the hi-fi product market together with turntable, amplifier and digital radio tuner, MP3 players, four-unit speaker and wi-fi capability. During this stage, the average production cost of portable DVD player is being assessed as to what the company could sustain. Samsung Electronics is one of the prominent manufacturers of consumer electronic devices, but because it is not the first-mover, it needs to do extensive research to enhance the quality and features of its product. It has launched the world’s smallest por table DVD with a tiniest DVD format, quality screen format and a good battery life. In addition, the high production cost during the introduction stage is initially recovered in the growth phase because of scale economies or increased output. Customers at this stage are early adopters and old-users because the former will become aware of product benefits and participate while the latter will increase their consumption level or usage rate. This phase is very attractive to new entrants because profitability and market share are certain; thus, the business must expect a growing competition. A higher sales volume and profits that Samsung have gained from its portable DVD players make competitors such as Sony, Philips and LG to emerge. For the product to compete and obtain superior sales rate and market share, its product features should be unique and different, and the cost of promotion should be increased. Strategies. Sales and marketing strategies should be strengthened by providing t he market segment with the necessary information about the product. The product quality, feature, style, and design should be improved to increase the usage rate and brand identity. It is also an advantage if the business will involve in new market segments such as first-time buyers or non-users to widen its distribution coverage as demand increases. Furthermore, the original price should be maintained because the demand is rising, and it should use an informative promotion to attract a wide market audience. 1.2 Mature Product Market The mature product market is the third product life cycle phase. During this level, the rate of sales and profits is high, but starting to level-off because the overall growth is at a very slow manner (Kotler, 2002, p.174). For instance, Coca-Cola and Pepsi-Cola are the two well-known competitors in carbonated soft drinks (CSDs) market wherein the former is the leading sales and market shareholder in the early years of competition. However, in the most recent soft-drink sales, Pepsi has total sales of $43.23 billion while Coca-Cola has $30.99 billion (Dlugosch, 2010). The

Describe a situation in which you combined analysis and creativity to Personal Statement

Describe a situation in which you combined analysis and creativity to solve a challenging problem - Personal Statement Example A major factor in the retail industry is the influence by policy published by Chinese government that takes the anti-corruption campaign against gift-giving culture. Men luxury, jewelry will definitely be affected by the policy. This year, I come back to China to find out the many new stores of famous brands in the Chinese market that have been closed and its sales have reduced from about 150 in 2012 to about 100 in 2013. Meanwhile, the decrease rate is one-third and I think it is very puzzling and challenging to figure out the real reasons of this phenomenon. It is said that Chinas luxury market has grown rapidly from the enclosure stage to the development of sustained attention to the customer experience and comparable store sales stage. I want to establish the reason because I feel very interested in this situation and want to research the reasons for this problem. In this regard, I plan to apply the theoretical and practical knowledge to study this problem. It is not easy to learn all the pictures of all the problems faced by stores of famous brands. Therefore, I run to many stores that sell the famous brand clothing and learn this price in China since I am a Chinese and want to study Strategic design a nd management. It is easy and creative for me to know some situations, sales, and styles by communicating with sellers. Usually, it is thought that the price is the most important reason to explain the reduction and decrease of the sales for luxury clothing. However, only the price in China is higher than the clothing with same style, but also the types of styles are rich. This probably explains the phenomenon that many Chinese customers want to buy luxury clothing in foreign countries instead of China. Meanwhile, from my own research I established that the main method is to search for information from the internet and library in the university to establish the reasons behind this whole scenario. Essentially, 73% of