Regal Marine Essay Example | Topics and Well Written Essays - 500 words

Regal Marine - Essay Example The product life cycle has four stages: introduction, growth, maturity, and decline. During the introduction stage sales are low because there are few customers buying the product (Netmba, 2011). The product needs advertising in order to attract new customers. The profits during this stage are nonexistent due to the fact that expenses are high and sales are slow. Regal Marine losses money when new boats are introduced, but eventually if the products survives and stays in the market during its entire product life cycle the firm generates a profit from the model. The maximum amounts of profits are generated during the growth stage. The growth stage of the product life cycle is considered a period of rapid market acceptance and substantial profit improvement (Kotler, 2003). Regal Marine should produce a lot of units during this stage. Investments made in advertising during this stage have a high return. The third stage of the product life cycle is the maturity stage. Competition is high during this stage which causes sales to decline (Valuebasedmanagement, 2011).The firm should lower its advertising expenses during this stage because the product is well known. The final stage, declining, is a period of downward sales and eroding profits. At the end of the declining stage the boats model is taken off the market.