Design of goods and services regal
Regal Marine is a global company that deals with designing, construction, and marketing of boats. This company can use the concept of product cycle to carry out its activities competitively so that it remains relevant in offering its goods and services. The concept of product cycle studies how long a product remains profitable to a company. By doing this, the company can be able to identify the right time when it has to make new products especially when the performance of the other product declines. The cycle is composed of five stages; right from the point Regal Marine begins to develop the new product. The stages include development, introduction, growth, maturity, and decline. By taking much consideration into this concept, the company can be able to plan how it uses it money in creating the product, marketing it, and earning substantial revenues (Heizer & Render, 2001, p. 23).
In the development stage for instance, Regal marine at this point devotes its time and machinery to come up with the most competitive and relevant boats to the market. During this time, the company channels it funds towards modeling the product so that it can be able to counter future challenges. After developing the product, the company will then introduce the product into the market but the sales at this point will be low because customers are not yet aware of its existence. The price of the new boat by Regal for instance is usually high at this stage with the sole intention of meeting the cost of developing it. The company also spends some good amount of money to create the awareness of the new product. When the company follows this cycle, then it will also find out that the mode of distributing its new products is rather selective (Foster, 2004, p. 34).
The concept of product cycle shows that Regal Marine has the opportunity make a kill out of its newly launched product during the growth stage. The firm at this point seeks to widen it distribution network, improve on quality, and prices reduced to a relatively lower level to attract more customers. The firm also increases most of its cost used in advertising and building product awareness. The maturity stage is characterized by maximum revenue earnings and reduced advertising cost because of strong brand awareness (Heizer & Render, 2001, p. 15). The company at this stage should have enough of the boats so that it can be able to meet the demand of its customers. The company at this stage should also be ready for any possible price war from competitors and should therefore emphasize on differentiation and offering incentives in order to build brand loyalty. This concept becomes more relevant when the product is at its decline stage because the company has to come up with strategies that will help it remain relevant in the market. The company at this stage should channel it efforts to come up with new product to replace the niche left by the existing one. A firm like Regal Marine should be receptive to come up with new boats immediately before they are overtaken by competitors. The product is obviously discontinued when no more profits are being made.