Developing New Products (Correct PP)

1. DEVELOPING
NEW PRODUCTS
PRODUCT LIFE CYCLE

2. PRODUCT LIFE CYCLE
The Product Life Cycle
The stages products goes through as they enters the market,
establishes itself, and leaves the market; providing marketers a
starting point for their strategic planning; often reflecting current or
predicted marketplace trends.

3. PRODUCT LIFE CYCLE
The 4 Stages
• 1. Introduction Stage: When product first launces
• 2. Growth Stage: Product gains acceptance, sales increase
• 3. Maturity Stage: Industry sales reach their peak
• 4. Decline: Product not rejuvenated, exits the market

4. PRODUCT LIFE CYCLE
MOTOROLA RAZR V3
• For a new product, usually the product
is introduced by a single company. This
is true for the Motorola Razr V3. The
Razr V3 took the cell phone market by
storm selling 50 Million phones between
2004 and 2006. Creating long lines and
product sell out. Inspiring innovators to
follow suit, creating the obsession with
slim cellphones that continues into
today. (Stinson)

5. PRODUCT LIFE CYCLE:
MOTOROLA RAZR V3
• 1) Introduction Stage: Product first launch in July 2004
Sales high: 50 million by 2006
Very high company profits
Consumers purchased product first
No competitors at the launch
No other phone like it on the market
Competitors force to compete by
creating products to compete (Stinson)

6. PRODUCT LIFE CYCLE
MOTOROLA RAZR V3
• 2) Growth Stage: Product gains Immediate acceptance
Intended as a high-end fashion phone
Initial sale price of $600, and up
Price dropped in 2005
By 2006, the Motorola Razr V3 was a hit
Available in every color imaginable
Catapulting numerous upgrade models
(Stinson)

7. PRODUCT LIFE CYCLE
MOTOROLA RAZR V3
• 3) Maturity Stage: Product sales reach their peak in 2008
Introduction of the Blackberry smartphone
Introduction of the iPhone smartphone
Motorola rejuvenates the Razr with
upgrade versions of the phone/design
By end of 2008, 23.8 Razr owners switched
to the new Blackberry and iPhone (Duncan)

8. PRODUCT LIFE CYCLE
MOTOROLA RAZR V3
• 4) Decline Stage: 2008 Product begins to exit the market
Motorola Razr owner’s provider contract ends,
consumers switch to new products
Slim style fashion styling no longer popular
2009 Motorola introduce Razr V13 to compete
Cellphone market switched to the much larger
new touchscreen trends. Flip phones no
longer the popular trend of cellphone
2011 sees the end of the Motorola Razr (Hill)

9. PRODUCT LIFE CYCLE
MANAGEMENT STRATEGIES
• The product cycle curve will take shape in reflection of the product sales,
depending mainly on how valuable the product is to the consumer. It is the job
of the Management Strategies Team (MST) to manage each stage of the
product’s life cycle.
• Manufacture the product at a reasonable cost, introduce the product to the
market in a way that the sales will recover the initial investment and start to
make a profit by marketing the product in a manor that the consumer believes
they cannot live/function without this product.

10. THE PRODUCT LIFE CYCLE
MANAGEMENT STRATEGIES
• The MST must pay close attention to the growth of the product as sales
increase and its market value rises. Easy for the MST to think that their job is
done because the product’s consumer value is keeping sales high. The MST
cannot afford to be lazy.
• Imperative for the MST to watch how the product growth sales fluctuates in
each market. Take advantage of opportunities to improve upon the product,
alter the product to fit the growth of the market the product created, and
reposition the product in new or existing markets to increase the product’s
value to the current consumer market or new consumer markets.

11. THE PRODUCT LIFE CYCLE
MANAGEMENT STRATEGIES
• The MST’s job is still not over. The MST must be mindful of the products
maturity. Know when to invest more effort in the product to keep sales from
coming to fruition. To reinvent the product to attract more consumers.
• MST must be mindful of the coming decrease of sales and the decrease in
the marketability of the product. To strategically plan how to close out the
product in a way that it still can hold some value in the eye of consumers. The
consumer should continue to think they cannot live without this product.

12. THE PRODUCT LIFE CYCLE
MANAGEMENT STRATEGIES
• Now the product’s life cycle comes to a close. Other products have caught the
consumer’s eye and therefore the need for this product is no longer valuable
to the consumer. How will the MST phase out the product in the current
market yet reposition it is another possible market that might keep the product
afloat for a awhile longer?
• Such was the case with Motorola Razr cellphones. The market for the
newest, best cellphone in the USA changes very rapidly. So, what does the
Motorola Razr MST do? Take the product overseas and give it a second life in
a market that is envious of American culture.

13. THE PRODUCT LIFE CYCLE
CONSUMER NOTES
As a consumer of cell phones during the late 80’s, the 90’s, and into the turn of the century, I personally remember the large “Cellphone in the bag,” with the
battery backup system. The phone was a band new concept but too expensive to market to the working class. Only the higher income market could afford
these phones. Next was the large handheld cellphones. Basically, the same cellphones without the bag. Again, too expensive for the working class.
Finally, Motorola introduced a flip phone for the working class. Sturdy, reliable, some with a built-in walky-talky. All construction workers, law enforcement,
etc, were able to purchase these phones, but only through communication companies. Working for the county at that time, we thought we had entered the
Star Trek era.
Finally, the Motorola Razr v3 was introduced. I remember these phone hitting the market. Here was Captain Kirk’s communicator. They were expensive but
stylish, and everyone wanted them. Cellphone stores had begun to pop up everywhere and the Razr was the “It” phone to sell and have. The cellphone
“Price Wars” were on! Deals were being made through new cellphone providers. Now working in the private sector, I remember how competitive the market
was for these phones. My group missed out on getting these phones for our workers by one day. We procrastinated making the decision and missed our
opportunity, by one day! And that is with having a co-worker whose husband worked for the cellphone store. The cellphone stores were having a difficult time
having enough of these phones to go around. Then all of a sudden, they were gone!
On the store shelves were the Blackberry. I remember these new cellphones being marketed as a personal pocket computer, or PPC. We were told you
could do all your personal and working business on these phones. They were small, easily to handle without flipping open the cover.
This consumer note is my personal experience for the Product Life Cycle of the Motorola Razr v3. Although recently reintroduced, I would prefer the original
style. I still want Kirk’s communicator! But with 5G!

14. CITATION PAGE
Stinson, Ben. “Motorola Razr 3: the greatest phone of all time,”
Techradar, The Source For Tech Buying Advise, 22 May 2015
http://www.techradar.com/news/phone-and-communications/mobile-
phones/Motorola-razr-v3-the-greatest-phone-of-all-time-1294669
Duncan, Geoff. “Many iPhone Users Switched from Razr,” DigitalTrends,
Mobile, 23 June 2008, http://www.digitaltrends.com/mobile/many-
iphone-users-switch-from-razr/
Hill, Simon, “Remembering the Razr: the device that snapped shut the era
of flip phones,” DigitalTrends, Mobile, 28 December 2012, https://www.
digitaltrends.com/mobile/ghosts-of-christmas-past-the-original-motorola-razr/