The Product Life Cycle of Gourmet Coffee
Cycle of Gourmet Coffee
In the food and beverage industry, there are several steps in the product life cycle, which can help you plan your marketing strategy. You can use this cycle to determine the right timing for your product launch and marketing strategy, as well as the right timing to discontinue it. Once a product reaches a certain point in the life cycle, it may be time to refresh it, add on other services, or tap adjacent markets.
During this stage, the coffee industry is maturing. The key characteristics of a mature market include wide distribution, high brand awareness, lower prices, and new product modifications. In order to remain competitive, many specialty coffee chains are targeting particular demographics, such as millennials. Other major players in the market include Starbucks and Dunkin’ Donuts. They are catering to a niche market, with different tastes.
The coffee industry must prepare itself to meet the growing demand. Consumption of coffee is projected to grow by over 10% by 2010, from 2.8kg in 2005. Constant value retail sales are expected to grow by 10% during the forecast period, or nearly U.S.$6.5 billion. This industry is highly competitive, and firms must develop a strong strategy to succeed. Listed below are five key steps in the product life cycle for gourmet coffee.
The Product Life Cycle of Gourmet Coffee
The product life cycle is an important part of the business life cycle, and understanding the life cycle helps you create a detailed plan for your company. Using the life cycle to guide your business growth will help you make better strategic decisions and financial forecasts. You should always consider exploring your market position as part of your regular planning sessions. This will help you determine how to position your product for success in the future. If you’re trying to establish a new brand, the process will help you get there.
The introduction stage is the same as commercialization. The introduction stage is the last step of the product life cycle. This stage requires more funds, since new products are generally expensive to introduce. Marketing must include promotions to create awareness, placement alternatives to entice consumers to try your product, and supply chains to deliver it to the customers. Once you’ve established your product’s life cycle, you can move on to the next step in the development process.
During the growth stage, the number of distribution outlets can increase. As the product is sold more, the company may expand distribution and production, which increases the costs of the product. The price of a product will typically remain stable during this stage, although some companies will decrease prices to attract more buyers or to match the prices of competitors. This is done to increase profits and attract more customers. The rise and fall of a product’s price depends on how the product performs, how it’s perceived in the marketplace, and how many people are willing to pay.