How does the concept of product life cycle apply to Regal Marine products?
In general, the life cycle of the product is the period starting from the design and development of the product, and ending with market withdrawal of the product. Every product passes four stages: introduction, growth, maturity and decline (Gitman & McDaniel, 2008). For Regal Marine, the life cycle of the product is only three to five years, which means that new boats quickly move to their market decline. In the innovation phase, the product is only being introduced to the market, and the demand for it is quite low. The company is suffering losses in this stage, and the design should be innovative and attractive for customers, in order to generate revenue in future. In the growth phase, the boats start being popular, and the demand for them increases. These two stages take about 1-1.5 years only. Later on, the product becomes mature, the demand for it slowly decreases, as well as customer interest to it (Gitman & McDaniel, 2008). In fact, the boats just go out of fashion. This stage might also take about a 0.5-1 years. Maturity stage is the one when most revenue is gained. After this stage, the decline period comes, when the product becomes outdates and starts generating losses instead of revenues. Product life cycle determines all Regal Marine operations, since their revenue and market position are strongly affected by their products’ life cycle.