Is A4 now in growth or maturity stage of "product life cycle"?
#1
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Is A4 now in growth or maturity stage of "product life cycle"?
I am bored study my Marketing final exam now. I am just curious if A4 is now growth of maturity stage of the Marketing "product life cycle". Here are what my notes tell me:
Growth stage: STARS
Sales climbs quickly
Profits begin
Competitors emerge
Maturity stage: CASH COWS
Saturation level: intense competition, increase product availability. decrease prices
Sales volume drops
To me A4 sounds like growth stage. Dealers and Audi itselt got profits all every A4 they sold, unlike introduction stage in 96/97. Sales climbs every month and every day. The BMW E46 and Saab 9-3/9-5 are now A4's new competitors.
Tom (A college student who wants to think of Audi/VW in some marketing thoughts!)
97 A4 1.8TQMS
99 BORA GLS 2.0
00 (OR 01) NEW BEETLE GLS 1.9TDI (ON ORDER)
98.5 A4 1.8TQAS WETTED
Growth stage: STARS
Sales climbs quickly
Profits begin
Competitors emerge
Maturity stage: CASH COWS
Saturation level: intense competition, increase product availability. decrease prices
Sales volume drops
To me A4 sounds like growth stage. Dealers and Audi itselt got profits all every A4 they sold, unlike introduction stage in 96/97. Sales climbs every month and every day. The BMW E46 and Saab 9-3/9-5 are now A4's new competitors.
Tom (A college student who wants to think of Audi/VW in some marketing thoughts!)
97 A4 1.8TQMS
99 BORA GLS 2.0
00 (OR 01) NEW BEETLE GLS 1.9TDI (ON ORDER)
98.5 A4 1.8TQAS WETTED
#2
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Posts: n/a
Re: Is A4 now in growth or maturity stage of "product life cycle"?
It depends which way you look at it. If you look at the model as a whole it is the product maturity stage. The product has a well established consumer base and it has been around for enough time that it is now longer in its growth (emergence) stage.
Now, If you look at this particular body style of the A4 (96-2000), although it is the first one, it is in product decline in the marketing cycle. This model is due to be replaced next year (I belive, not positive). The more people that find out that this current bodystyle of the A4 will be replaced, the more sales will begin to decline. Consumers will opt to wait and purchase the new model next year or buy a used model much cheaper. The decrease in sales signals decline in the marketing maturity model.
So to review, the A4 is a cash cow and is in product maturity. This particular body style, I believe, is in decline as far as the marketing maturity cycle goes.
-Bill
Finance Major at the University of Rhode Island
Class of 2000
1988 Mazda MX-6 turbo. 170 HP with mods.
Now, If you look at this particular body style of the A4 (96-2000), although it is the first one, it is in product decline in the marketing cycle. This model is due to be replaced next year (I belive, not positive). The more people that find out that this current bodystyle of the A4 will be replaced, the more sales will begin to decline. Consumers will opt to wait and purchase the new model next year or buy a used model much cheaper. The decrease in sales signals decline in the marketing maturity model.
So to review, the A4 is a cash cow and is in product maturity. This particular body style, I believe, is in decline as far as the marketing maturity cycle goes.
-Bill
Finance Major at the University of Rhode Island
Class of 2000
1988 Mazda MX-6 turbo. 170 HP with mods.
#3
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But luckily for us, Audi hasn't really adopted a harvest strategy........
they're still adding substantial new features. Witness the 99.5 improvements - of considerable expense to Audim but not passed on to the consumer.
Mark
99.5 1.8tqms, APR
Class of 2000, Saint Mary's University, Halifax, Canada, Small Business and Entrepreneurship Major.
Mark
99.5 1.8tqms, APR
Class of 2000, Saint Mary's University, Halifax, Canada, Small Business and Entrepreneurship Major.
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