Marketing Plan Phase III Research Paper Example | Topics and Well Written Essays - 500 words

Marketing Plan Phase III - Research Paper Example This new product idea will undergo the phases of a product life cycle. â€Å"The product life cycle describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline† (Perreault, Cannon, & McCarthy, 2011). In the introduction stage of the turkey burger, McDonald’s objective is to build product awareness and develop a market for the burger. Informative promotion is an essential method to communicate potential customers about the benefits of the new turkey burger. â€Å"In the market growth stage, industry sales grow fast—but industry profits rise and then start falling† (Perreault et al., 2011). During this stage the company will seek to build brand preference and increase market share. Adding qualities while maintaining the quality of the burger may increase the demand of the product. This stage is the best time to invest in advertisement for a broader audience. â€Å"The market maturity stage occurs when industry sales level off and competition gets tougher† (Perreault et al., 2011). At maturity stage, the strong sales diminish and persuasive promotion becomes crucial for the company. â€Å"The primary objective at this point is to defend the market share while maximizing profit† (QuickMBA.com, 2010). The company can achieve this by enhancing product features and enforcing competitive strategies. During the sales decline stage new products replace the old and competition becomes more vigorous. However, McDonald’s strong brand will continue making profits until the end. During this stage the company has several options: maintain the burger and possibly rejuvenate it by adding new features and offering new benefits; reduce costs and continue to offer the turkey burger to a loyal market segment; or discontinue the product and liquidating the remaining