BANGAYAN, MELODY D. PROF.

PAULO NOEL MAZO, DBA

MAN 010 - ACTCY31S1 December 10, 2020

DISCUSSION #2
PRODUCT LIFE CYCLE

Discuss the following questions below:

1. Briefly compare the lifecycle development of Apple to Sony. What factors might
have caused the change in the life cycle?

In life cycle development of a product there are four stages which are the introduction,
growth, maturity, and decline stage. As an example:

Life Cycle Development of Apple

Recently, they introduced a red colored iPhone. Because this is a new product, it is in the
introduction stage. This stage is characterized by few sales and slow growth. During the
introduction phase of apple products, the prices are high. Apple is selling red iPhones in an effort
to raise awareness, and money for the Global fund to fight HIV and AIDS. Nevertheless, this is still
a new product in the introduction stage and Apple has to bring awareness to consumers.

Apple’s AirPods on the other hand are in the growth stage of the product life cycle. This
stage is characterized by many sales and increasing market share growth. In the growth stage,
there’s a need to keep up with the growing demands of audience because of the competitors.
Apple consumers are aware of the new AirPods, and many are purchasing them. They haven’t quite
reached the maturity stage however, because they are still a relatively new product.

Apple iPhones however are in the maturity stage of the product life cycle. This part of the
life cycle involves a slowing of total industry sales and revenue. Apple has been developing iPhones
consistently over the years, and consumers are well aware of them. Also, many iPhone users are
“repurchasers,” meaning they consistently buy iPhones and do not switch brands. Because of this,
iPhones are in the maturity stage.

Finally, Apple has some products that are in the decline stage. Apple’s iPods are definitely
in this stage. The decline stage occurs when sales drop. Many former iPod users do not need them
anymore because they have all their music on their phones.

Life Cycle Development of Sony

Sony products in the introduction stage, the prices are low for them to capture a large
market. The Sony Walkman was developed in the Sony Research Center, Yokohoma, Japan.
 Sony invested billions of dollars in R&D, especially product development. It had 4 corporate
laboratories, nine development groups, and R&D labs around the world.

On average, minor Sony product changes occur about once a year. For Sony Walkman, new
models were introduced every six months or less. Plus an anniversary model on 1st July every year.
Major model changes that require the introduction of new technology occurred only once every
three to five years. Sony worked to prolong the product’s life in the marketplace.

By late 1980s, competition grew, from Toshiba (Walky), Aiwa (CassetteBoy) and Panasonic.
Sony’s compact disc player, the Discman, was introduced in 1984.
As CDs became more popular, cassettes naturally began to disappear. As a testament to the
strength of the brand, though, Sony began to market other products with the name “Walkman,”
abandoning the Discman name altogether. Walkman lived its product life well. It set the stage for
innovation and further development and brought about new products like MP3 players and iPods.

Sony failed to maintain its leadership in the segment that it had created itself! MP3 players
were more popular soon, and not many people were interested in the cassette player.
Sony’s youth-in-motion branding was taken over by the more dynamic and aggressive iPod from
Apple. In October, 2010, Sony announced that April 2010 was the last month of production in
Japan.

Based on the comparison above, both brands have almost encountered the same changes
in the life cycle development of their products. There are actually various factors that caused these
changes in the life cycle development such as technological changes, market acceptance, and
marketing technique. If the rate of technological changes is relatively high, most likely the life cycle
development might be cut shot short because it will pave the way for new improved products. It
also depend on the market acceptance because a product with small target segment tends to have
a low market acceptance which eventually yields to short span of life cycle development. Lastly,
marketing technique affects the changes in the life cycle. Basically, how a brand market its products
fall under the growth stage.

2. Why will Apple’s iPhone and iPad continue to grow in emerging economies?

We can learn from Apple’s description of a product marketing manager position in its own
company: One of the product marketing manager’s responsibilities is to “closely follow emerging
technology, consumer, and societal trends and make recommendations for how products will leverage
or fit into those emerging trends.” This broad view is critical to successful marketing.

It demonstrates the importance of creating a diverse set of products. When the iPod lost
market share to the iPhone, Apple won. Other companies that have lost market on account of the
transition to smartphones—Nikon and Canon in cameras, Garmin in navigation devices, etc.—have not
fared as well.
 Apple’s iPhone and iPad continue to grow in emerging economies because we cannot deny the
fact that Apple has a come a long way in establishing and introducing its product in the market. Despite
of its high price, the people specifically in the developing countries still continue to patronize this
products because Apple products (iPhone and iPad) has somehow creates an exclusivity of ownership
which also gives an impression that a purchaser of such products belongs to higher class of the society.
Indeed, the brand identity that was established under Apple was strong enough that it becomes the
most iconic brand among its prime competitors. Simply put, Apple products become a status symbol
which is also important for the people in the developing countries.

3. Is there a possibility to anticipate product change in times of saturation for Apple?

Discuss.

Saturation During the product saturation stage, competitors have begun to take a portion of
the market and products will experience neither growth nor decline in sales. Typically, this is the point
when most consumers are using a product, but there are many competing companies.

Market saturation happens when products no longer entice customers. In this sense, developer
of such products needs to be creative in order for them to cater the possible loss that it might have
caused. As we all know, Apple brand have a regular launch of new product models. Basically what they
have launched in the previous years are all in the same ground. However, the difference is they are
outdoing the specifications of the previous model. With that, before it reaches the market saturation
of Apple products, they already have a new product to launch.