A product life cycle is based on a biological analogy (Day S.G, 1981 pp, 60-64). The four stages are: Introduction stage, Growth stage, Maturity stage and Decline stage. Regal marine has applied this concept in its products to ensure success in the market. Regal continuously introduces new boats into the market by being more innovative in terms of design. By use of the Computer Aided Design (CAD) technology, it has successfully made high quality products from time to time. Being a global company, there is a very high competition and therefore requires introduction of new products continuously into the market.
At the introduction stage, the costs of advertising costs increases and product manager must understand customers well to satisfy them (Linda, G., 2000). Currently, it has 22 models since it keeps on adding new products. It brings new suppliers on board so as to facilitate the development of new designs of boats like the 3-passenger $11,000 Rush developed a few years ago. The costs were very high at this stage but Regal has recovered them after the product has been successfully introduced. Since the life cycles are short, new boats continue to be developed. The negative cash flow can be recovered if the product is highly demanded after customers are aware of the new boats.
At the Growth stage, the new boats have already been introduced through the advertisement and therefore more clients begin to buy the new boats as they try the new designs that are very attractive. Regal increases the sales and profits due to lack of many competing products in the market. Other competitors then can begin noticing the decline in their sales due to the customers shifting to the Regal Marine’s new boats. The competitors try to come up with similar boats to compete.
At maturity stage, there are many competitors in the market. The boat sales are very high, since the sales are at the peak, for a few years. Regan has to plan on redesigning its boats as it deed in the year after; a 20-foot inboard- outboard performance boat. After some time, the sales begin to decline due to very high competition in the market.
Decline stage, is when the sales have declined finally after customers shift to other products of competitors. The company has to come up with a completely new product innovated and introduce it in the market. Hence this led to redesigned 42-foot Commodore which was another new model that was made. This product can then begin its life cycle for some time, usually 3-5 years.
In order to stay competitive in the market, Regal Marine has employed different strategies. It constantly redesigns inputs from the customers, dealers and consultants. It also uses the CAD technology to facilitate the development process of innovations. It has also keeps key suppliers early on board to help in development.
The CAD has some benefits over the traditional techniques. It helps the designers collect data like the weight, measurements and other dimensions of the new product. Unlike the traditional techniques, CAD helps in geometrical constructions of any new boats. It can produce a 3D design models (Rowe J., 2010).The CAD technology may allow the designer to check whether all parts fit together well in the new model. It also has led to development of Product Lifecycle Management (John T., 2004). The CAD provides some specifications on the carving process whereas the traditional technique does not. Above all, all these benefits help in speeding up the production process.
George S. Day, (Autumn 1981). The Journal of Marketing,(Vol. 45, No. 4 pp.60-64).
Gorchels Linda, (2000). The Product Managers Handbook: The Complete Product Management Resource.
Jeff Rowe, 3D-model Based Design: Setting the Definitions Straight. (2010).
Telesko John, (2004). The PLM Revolution.Industry week.