Product Life Cycle

4.0 Fruit Float Life Cycle Stages

4.1 Introduction Stage

Introduction stage refer to the stage which product is introduced in the beginning of expanding market to build the identity of product in the market. During introduction stage , Fairy Tale company core focus is on establishing market in UMS and arise demand for the product. The marketing mix in this stage include price, place, promotions.

The branding and quality level of the fruit float is stressed during that stage to stimulate the demand and the loyalty of the customer for the fruit float. This is to build the confident among the customers, that is the students in UMS.

In this stage, low pricing is used to penetrate and gain the market share. This is to gain the profit in long term also. We set RM3.50 for each fruit float to every customer, which is in the low price to build product awareness and expand the market. UMS is set as the location of market to sell and distribute the fruit float.

In this stage, fruit float can be distributed to the students either in DKP lama, DKP baru or library. Promotions is held to increase the awareness among students. For example through coupons, those who purchase 1 cup of dessert can get 1 on the date and time given only. Sampling has the obvious benefit of stimulating product trial because it gives the customer opportunity to try the product for free. Other promotion activities is free trial to the student like course mate, lecturer and those students who go to the library and the trial is limited to 100 person only. From the trial, we can get faster feedback and response from the student. we also will ask some question about our product such as is it the dessert suitable with the contain of a flavour? How about the price? Is it affordable and reasonable? From their feedback we will improve toward our product and make it more attractive and will get high demand from student.

4.2 Growth stage

Growth stage is the stage where company's sales and profits starts increasing and competition also begin to increase. Fairy Tales becomes well recognized at this stage and some of the buyers repeat the purchase of fruit float patterns. During this stage, Fairy tale focus on brand preference and gaining market share. The quality of the fruit float is maintained and improved and additional features such as adding topping or different patterns of packaging to compete and maintain the market share. The price of fruit float is slightly increased as Fairy Tale get high demand at low competition. The distribution of fuit float becomes more significant with the increase demand and acceptability of the product. More channels are added for intensive distribution in order to meet increased demand. For example, through putting more stocks in the stall for the convenience to take stock. Another example is through some of the students to deliver the fruit float. In this stages also, the distribution of product is more focused on the place where more products get more popular. Promotion is increased and more efforts are made for brand preference and loyalty.

4.3 Maturity Stage

In maturity stage, the Fairy Tale brand awareness is so strong so the company sales continue to grow but at a declining rate compared to the past as compared to past. At this stage, there are more competitors with the same products as fruit float. So, Fairy Tale defend the market share and extending product life cycle, rather than making the profits, By offering