Product Life Cycle: Introduction Stage

• The product life cycle refers to the time a product is introduced to consumers until it is removed from the market.
• The four stages of the product life cycle are:
  • Introduction
  • Growth
  • Maturity
  • Decline

Introduction Stage

• The product is first launched into the market.
• Promotional costs are high.
• Profits are low or negative because of initial investment.
• Competition is limited.
• Focus is on gaining market acceptance.
• Product launch involves offering fresh, nutritious meals with various dietary customizations.
• There may be limited market awareness, requiring marketing efforts to educate about healthy eating, convenience, and dietary options.
• Customer acquisition focuses involve targeted marketing campaigns, influencer partnerships, and promotional discounts to attract early adopters and build a customer base.
• Branding and positioning involves establishing a strong brand identity centered around health, sustainability, convenience, and customization.

Introduction Stage: Activities

• Involves setting up the kitchen and operational processes.
• The business develops the website/app to manage subscriptions.
• Building supply chains for fresh ingredients is required.
• Delivery logistics need to be tested.
• Initial digital marketing, social media campaigns, and influencer promotions occur.
• Businesses offer trial periods or introductory pricing to attract initial customers.

Introduction Stage: Revenue

• Revenue may be low due to the customer base just starting to grow
• Profit margins might be thin because of initial marketing and operational setup costs

Growth Stage

• The product starts gaining traction in the market, leading to increasing sales.
• Sales and market acceptance increase rapidly.
• Profit margins improve as economies of scale kick in.
• Competition and differentiation increase.
• The business focuses on expanding distribution and improving product features.
• Due to the service gaining recognition the customer base grows rapidly, with word-of-mouth and positive reviews contributing subscriptions.
• Increased customer testimonials, digital marketing and collaborations possibly increase brand recognition.
• The meal offerings become more refined through customer feedback.
• New menu options cater to broader tastes and dietary needs, adding more plans for health goals e.g. weight loss or muscle gain.

Growth Stage: Activities

• Scaling up production and meal prep operations is key.
• Customer engagement is enhanced through personalized meal recommendations.
• The business should offer flexible subscription plans to accommodate different customer needs.
• Increasing marketing efforts is necessary, including partnerships.
• Logistics and distribution for faster delivery times need to be improved.

Growth Stage: Revenue

• Rapid revenue growth occurs as more customers subscribe.
• The business may start seeing it’s first profits, especially as the brand gains traction.

Maturity Stage

• The product reaches its peak market saturation.
• Sales growth slows or stabilizes.
• Intense competition occurs.
• High profits are possible, but margins may be lower due to price competition.
• Market saturation is reached when most potential customers have subscribed or are aware of the option.
• Competitors may emerge or existing companies may expand offerings that require innovation to differentiate.
• A stable customer base is made up of loyal subscribers, some which may switch to other options.
• The focus needs to be on brand loyalty and customer retention.

Maturity Stage: Activities

• Activities include refining and differentiating the brand.
• Loyalty programs are launched to encourage repeat customers.
• Additional partnerships through fitness centers, gyms, or corporate wellness programs need to be explored.
• Maintain high levels of customer service needs to occur to retain subscribers.
• Innovating with new meal types or limited-time offers keeps brands fresh.

Maturity Stage: Revenue

• Includes steady and stable revenue.

• Profit margins are higher as economies of scale are achieved.

• Business remains profitable, however, growth may be slower.

• The product experiences a decrease in sales and profitability. It may be due to newer alternatives.

• Customer interest wanes.

• There is increased competition from newer products in the maturity stage.

• The product has the potential for it to be phased out or discontinued.

• Marketing mix involves the combination of key elements that businesses use to promote and sell their products or services effectively. Commonly referred to as the 4 Ps of marketing or can be expanded to the 7Ps.

The 4 P's of the Marketing Mix

• Product - What meet the needs of the customer, including associated services, design and packaging.
• Price - Defines the cost of a product or service, with pricing strategies that may include premium, psychological, discount or competitive pricing.
• Place - This is how product reaches consumers and where product is available.
• Promotion - Marketing activities focused on making potential customers aware of the product. This includes public relations, advertising and personal selling.
• Advertising - Aims to grow awareness of a brand and to persuade or inform customers to take part in an action.
• Sales promotion - Involves offering temporary incentives to encourage customers to make a purchase.
• Public Relations - This builds a maintains a positive image or reputation for a brand.
• Direct marketing - This requires businesses communicate directly with potential customers to generate a response or transaction.
• Personal selling Involves direct interaction between a salesperson and a potential customer.

Discount pricing

• Reduces original price of service to draw customers, increase sales, move inventory
• Examples include, seasonal, volume, cash, loyalty, bundling or clearance discounts.

Psychological pricing:

• Affects customer behavior by influencing the price for them.
• Includes, BOGO, charm, anchoring, time-limited or decoy pricing plus free shipping, cashback or rebate offers.

Competitive pricing

• Base sets price of service or product on competitors.
• It does not consider profit margins or production costs.

The 7 P's of the Marketing Mix

• People - All individuals involved in delivery, including employees, customer service and clients.
• Process - This involves delivery, the systems and steps involved.
• Physical Evidence - Tangible elements that assists customer evaluate services.

The introduction stage is the first stage of the product life cycle. In this stage, the product is first launched into the market. Focus is on gaining market acceptance with limited competition and high promotional costs.