It’s as far back as I can remember, when I’d see a product on television that captures my attention, I’ve always had this feeling overcome me. It was at that very moment that new things become a priority for me. I can remember always shouting that I must have that particular item in my life immediately. This is the very same projected ideal and sentiment intended to manifest within the marketing demographics of the newly popular Hoverboard. This technological prototype seems to offer a wide range of impressive but also simplistic hoverboard models.
Living in today’s technologically advanced society, creators have been able to provide buyers with our most basic purchasing ...view middle of the document...
Musical celebrities began showing up riding Hoverboards in music videos, paparazzi magazine ad pictures, and on celebrity news channels as the new toy of the stars. This is the product’s initial growth start in the product life cycle; market saturation. “Hoverboard is a famous item that you can use in your daily life. Your kids are going to love using this device for enjoying their daily activities. There are some great items that you can find on the market today. Different Hoverboards may come with their own benefits and features for all customers” (Top Ten Best Pro, n.a.).
After it’s now low cost versions have been introduced into the market the next step in its product life cycle is its Growth phase. Currently the product is meeting a need that was foreseeably already there within its targeted market. The ability to move faster is more efficient with time and travel, while looking cool doing it. In addition, the supplier can demand of the estimated market size. While the competition is low, sales volume will continue to grow.
Once the product reaches maturity the demand will die off and then the creators will begin introducing the other prototype. The original cost will reduce just to maintain market sales but when the new upgraded versions of the slightest detail are introduced, cost and demand will go up. This is considered the Maturity phase of the product Life Cycle.
It is important to ensure that with the packaging of this product that potential customers can obtain all the information that they need to make a purchasing decision at first glance. “Packaging can also differentiate one brand of product from another brand. Because the product packaging can contain company names, logos and the color scheme of the company, it helps consumers to identify the product as it sits among the competition’s products on store shelves” (Lorette, 2015). These ads add value to the product line because it’s not aligning itself with any particular celebrity or other established brand.
Pricing and Service Strategy for the Hoverboard
One of the most important business decisions you will make is the pricing of the service(s) or product(s) your business sells. The business must research what the target market is willing to pay for the service or products, and determine the price; one that will offer profit for the business or the business will not be in business for long. There are numerous methods to determine the pricing of items, some technical and some that are not technical. A main background for determining prices, are decisions which take the businesses costs into consideration and the consumer's perception on the value of the item and the effects of the competition.
It is essential to understand and determine your Cost of Goods Sold (COGS). The overall cost of the materials, labor, etc. it takes to produce your product gives you the baseline to determine the starting point for the purchase cost. Analyze the industries data of...