WA U4 BUS5112 Tesla a well-known leading electric car manufacturer even though after more than 10 years of production it\'s still in the early stages of the product life-cycle growth stage. PDF

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WA U4 BUS5112 Tesla a well-known leading electric car manufacturer even though after more than 10 years of production it's still in the early stages of the product life-cycle growth stage....

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Written Assignment Unit 4 Marketing Management BUS 5112

For this assignment, choose from any two categories products that are at different product life cycle stages. Identify the product life cycle stages for your selected products and provide explanations for why you believe they are at these stages. Then, provide answers to these two questions: Introduction Products and services offered by a company all have a life cycle. Product life cycle (PLC) refers to the various stages a product goes through during its life from development through decline and withdrawal. Typical stages of a product life cycle are development, introduction, growth, maturity and decline (Migrator, 2019). In the development stage the product is designed with prototypes, In the introduction stage the product is released to a small target group. In the growth and maturity stage the product is further marketed to a wider target group. In the decline stage the products reaches its end of life and eventual withdrawal (Migrator, 2019). Although some products may stay in the maturity stage for a very long time eventually it will phaseout due to various factors such as decrease in demand and increased competition which leads to decline in sales. By examining a products life-cycle stage, you can better understand its potential and ways to increase the profitability & demand (Sraders, 2021). In this paper we will examine two products to evaluate its product life-cycle stage we will examine an electric car from Tesla and a diesel car from Volkswagen. Tesla Model 3 The demand for electrical vehicles has been on the rise in the last decade and they are considered to be the cars of the future, however up till now these vehicles present less than 1% of the total vehicles around the Page 1 of 4

world, possibly due the fact that most consumers are concerned on the battery reliability of these electric vehicles and also due to the fact that the retail price on these electric vehicles is high (Boilard & Confais, 2019). Tesla a well-known leading electric car manufacturer even though after more than 10 years of production it's still in the early stages of the product life-cycle growth stage. Based on data for the rise in electrical vehicle demand around the world and Tesla being a pioneer in this field Tesla has already passed the introduction stage which it gained brand recognition which it has been striving to achieve since 2009 with its first production car and with various other models up till now, with growing sales year after year and with the recent spike in company valuation tesla is starting strong in its growth stage. As more cars are sold and more electric charging points are built, we will see a rapid spike in consumer demand and confidence (Pettinger, 2019). Volkswagen Tiguan (Diesel) Diesel cars became popular due to superb fuel efficiency achieved from the usage of diesel fuel, sales of diesel cars have been on the rise since the mid 2000's however in recent years for specifically after 2015 they have been a significant decline in the sale of diesel car and the sales of diesel-powered cars are falling every year this is due to environmental concerns raised by governments around the world (Automotive News Europe, 2020). Diesel cars are losing market rapid and taking their place alternatives such as gasoline fueled cars and electrical cars. It is clear to see that diesel fueled cars will soon reach the end of their life cycle (Sclar, n.d). Since the sales have fallen considerably as shown by Automotive News Europe (2020) based on this it is clear to see that that diesel cars are disappearing because they are causing major problems when it comes to air quality, they are in the decline stage and sooner or later will be phased out. Examine the product life cycles for your chosen two products relative to how it affects the company’s marketing strategies

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The current marketing strategy for the Tesla model 3 is rapid skimming which focuses on launching the product with a high price and high promotional level. Their aim is to creates awareness because a large portion of the potential market is unaware of the product therefore creating awareness and for those who become aware will be eager to buy it and can pay the asking price (Goreham, n.d.). On the other hand, the current marketing strategy for the VW Tiguan is product modification which focuses on launching new models with new features and differentiating it from other products in the market, this strategy helps to extend the product's life the end of its lifecycle. Hence, tries to raise sales and stay profitable (Automotive Daily, 2021). Therefore, you can see the major difference in the marketing strategy for both these products completely differs due to each one of them are in different stages of its life cycle and therefore different marketing strategies is required to make the product successful. How would your suggestion be different for the two companies' brand managers about making decisions on price, advertising, and distribution channels? For the Tesla Model 3 the high price tag of more than $50k limits the target audience and this strategy of rapid skimming might not be the right method to help with product growth, if I were the marketing manager, I would try a different marketing strategy which is rapid penetration which is launching at a lower price with significant promotion (Migrator, 2019) I believe this strategy will help the Tesla model 3 to gain dominance over its competitors For the Volkswagen Tiguan the release of new models with newer features may not be enough to sustain large sales and prolong the maturity stage or delay the decline, if I were the marketing manager I would try to penetrate new markets by using market modification strategy which redefines target markets and converting non-users to become customers this can be done a few ways, one way could be reducing the production cost and ultimately reducing the sale price therefore attracting a wider customer base this strategy would help to sustain large sales and prolong the products life cycle (Migrator, 2019). Page 3 of 4

References Automotive News Europe. (2020). Diesel decline has ended but long-term outlook remains bleak. https://europe.autonews.com/automakers/diesel-decline-has-ended-long-term-outlook-remains-bleak Automotive

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