Product Life Cycle

Product Design at Regal Marine

Jane Doe

1/30/12

Module Session Two

Summary

The process of designing boats at regal marine is one that has been refined to the point where integration with its customers and suppliers has become one of the key points to providing innovation and quality. Global firms like Regal Marine know that the basis for an organization's existence is the goods or services it provides society. Excellent product lines are the keys to successful businesses. With hundreds of competitors in the boat business, Regal must work to differentiate itself from the competition. Regal continuously introduces innovative, high-quality new boats. Its differentiation strategy is currently reflected in a diverse product line consisting of many different models and styles for customers to select from. It is crucial that Regal be constantly designing new boats, as the product has a life cycle dictates that once a product is born, it eventually dies.

Techniques Used

A products life cycle can be divided into four phases: introduction, growth, maturity, and decline. The product life cycle stages and the relationship of product sales, costs, and profit over the life cycle of a product and are depicted in the graph below:

When Regal is developing a new model boat, it usually has a negative cash flow. If the boat is successful, those losses may be recovered and yield a profit prior to its decline. The life cycle for a successful Regal boat is between three to five years.

Question Answers

1. How does the concept of product life cycle apply to Regal Marine products?

The concept of product life cycle applies to Regal Marine products. The reason is that the product life cycle of a new product introduced ranges from three to five years. Regal Marine products develop new innovations to remain competitive in the boat market. For this it develops new products, introduces these into the market, encourages the market for the boat to grow, the product then reaches...