Nothing lasts forever. It’s a tired phrase, but a true one, that is often applied to consumer goods. In the past couple of years, two of the most ubiquitous consumer products that have been deleted include the VCR and the iPod. It happens in all industries.
In the automotive industry, some of the famous car brands that have been deleted in the past decade include Pontiac, Saturn, Maybach, Mercury, Hummer, Saab, Isuzu, Oldsmobile, and Plymouth. The most recent company to delete a car line (but not the entire company) is Ford. Ford plans to kill off its entire sedan lineup (except Mustang!). The company plans to delete Taurus, Fusion, Focus, and Fiesta – some of which have had high rankings and sales. Why cut the lines?
Strategically, Ford needs to cut costs and improve its overall financial performance. The company’s decision also seems to reflect changing consumer preferences for SUVs and crossovers, instead of traditional family sedans. Generation Y and Millennials are now starting families, but they still want to maintain an active lifestyle. This makes SUVs a popular choice. By 2020, Ford plans to have nearly 90% of its vehicles in the categories of truck, SUV, and commercial vehicles. And, let’s not forget about emerging demands for electric and autonomous vehicles.
Out with the old – in with the new.
Instructions:
Read the stages in the product life cycle in chapter 10 of your textbook and view the Product Life Cycle videos under Resources.
In separate paragraphs, thoroughly explain each stage of the product life cycle.
In separate paragraphs, thoroughly explain the marketing objectives in each stage of the product life cycle.
Provide an example of a product or service within each stage of the product life cycle and explain why that product or service fits with the chosen stage.
The paper should be at least two full pages.
