Mercedes Benz Case

Product cycle

A theory is based on the evolution of how a product moves through a four-step process, or life cycle, from beginning to end. This process begins with the introduction of the product, and then it moves on to the growth stage, the maturity stage, and ends with a decline in the product's sales.

Given this theory to BMW product life cycle, BMW's strategy is to keep its products in the introduction and growth stages by periodically introducing new models in each of its product lines. In fact, BMW does not like to have any products in the maturity or decline stage of the product life cycle. If a product is declining, they would prefer to withdraw it from the market, as opposed to having a strategy for dealing with the declining product. They're kind of a progressive, and they don't think it does their brand image any good to have any declining products out there. So that's why they work so hard at managing the growth aspect

Growth factors (if any):

(1). Demographics change will affect the way dealers relate to their consumers changing styles and lifestyle situations.

(2). Country's current economic environment will affect the consumer purchasing and spending habits.

(3). Natural environment or natural resources: With tensions rising in the Middle East and a finite amount of crude oil; gas prices have gone up dramatically, to about $90 a barrel. Besides the fact this is scary, it has completely altered the way cars are manufactured and built.

(4). Safety standards and regulations are passed through the political environment which can also affect the automobile industry. It will let the marketer promote their products to improve the sales.

(5). Technological changes or forces that create new technologies, creating new product and market opportunities which has