What is the retail life cycle? The retail life cycle concept states that retail institutions--like the goods and services they sell--pass through identifiable life stages:
Every product goes through a product life cycle consisting of four stages: Every product also needs to be differentiated from its competitors by offering a unique set of valued differences to a consumer. Introduction Differentiation At the introduction stage, marketers need to focus on informing potential consumers about the product.
The product is differentiated simply by being new and establishment of a strong brand name. Promotion and pricing are geared to generating product trials -- getting consumers to buy and try the product. Retail distribution is established, but through limited channels.
Determining where a product can be purchased significantly differentiates it from the competition. Growth Differentiation As product sales start to take off, marketers increase the offerings by expanding the sizes and flavors or types available.
Use of lower prices becomes more common, either through a lower list price or more frequent promotional pricing. Profit margins actually increase despite lower prices because of the economies of scale achieved through increased sales. The lower pricing helps differentiate the product from competitors that are introducing similar products but are in their introductory stage.
Because of the increasing product sales, marketers can expand the channels of distribution to get new retail distribution. Services such as increased warranties or better return opportunities are usually introduced.
Additional uses are promoted to attract new target markets. For example, Cheerios are marketed to senior citizens as lowering cholesterol, daily aspirin is marketed as heart healthy, baking soda is presented as a refrigerator deodorant.
Decline Differentiation The expanded selection of different sizes and types introduced in the growth stage are slowly eliminated in the decline stage.
The focus is on consolidating volume into a few basic options, to achieve economies of scale where possible. If the company feels there is a limited hard-core customer base, it may decide to pursue a strategy know as harvesting.
Under this strategy, the price is increased and it is assumed that the profits from the increased prices will more than offset the decline in volume that typically accompanies increased pricing.According to Figure above, "C" represents which stage of the retail life cycle?
maturity According to lecture, retailers can be classified based on the form of ownership and their marketing strategies. 89The retail life cycle Although it is an evolutionary process that cannot be counteracted, it provides retailers and suppliers with oppo 1/5(1).
The product life cycle and product differentiation are intertwined. Every product goes through a product life cycle consisting of four stages: introduction, growth, maturity and decline.
The seasonal retail cycle is absurd. I would never have been able to grasp it if I hadn’t been a buyer for years.
Why is it that when the weather is hot, you The retail cycle – when to buy what — by Angie. on April 11, The seasonal retail cycle is absurd.
I would never have been able to grasp it if I hadn’t been a buyer for years. Crossing Threshold Periods in the Retail Life Cycle:: Insights from Wal-Mart International.
Author links open overlay panel Mark Palmer. Show more. Put differently, the retail life cycle does not indicate the processes by which the retailer will progress from one stage to another. It also assumes that all firms will pass through each stage. Retail Life Cycle A theory of retail competition that states that retailing institutions, like the products they distribute, pass through an identifiable cycle.
This cycle can be partitioned into four distinct stages: (1) innovation, (2) accelerated development, (3) maturity, and (4) decline.