Product Life Cycle -
A commercial product undergoes metamorphic stages in life. These stages constitute the product life cycle. They illustrate the various phases like induction, growth, maturity and decline of a product in the market.
A product enters into the market owing to a lot of pre launch research. The product is under constant development and the pre launch activities are carried out with rigor. Early investors and creditors are identified.
Business idea -
in 1968, a scientist at 3M in the United States, Dr. Spencer Silver, was attempting to develop a super strong adhesive, instead he accidentally created a low tack, reusable, pressure sensitive adhesive. For 5 years, Silver promoted his solution without a problem within 3M both informally and through seminars but failed to gain acceptance. In 1974 a colleague who had attended one of his seminars, Art Fry, came up with the idea of using the adhesive to anchor his bookmark in his hymnbook. Fry then utilized 3M's officially sanctioned permitted bootlegging policy to develop the idea. the original notes yellow color was chosen by accident, as the lab next door to the post it team had only yellow scrap paper to use.
Introduction -
The first sale of the product, marks the introduction of the product. The introduction stage gives weighted importance to the marketing and promotion of the product. The phase is characterized by low sales and as an outcome, low revenue and hence low profit. The product is introduced into the market and is waiting for acceptance from the consumer. This phase also sees customers known as Early adopters, who welcome new products with ease and start purchasing the the product at this stage. 3M launched the product as "press n peel" in 4 cities in 1977, but results were disappointing. People thought that the press n peel was a very expensive item compared to the ordinary, non stick scratch pads which were sold for just 7 US cents and the people who did buy it were the top executives in an organisation.
Growth -
The growth phase shows gradual pickup in sales. Revenue is generated and the product is well recognized and welcome in the market. The early majority breed of customers start purchasing start purchasing the product after the initial review showered by the early adopters. Advertising and marketing play a key role in this phase. A year later 3M instead issued free samples directly to the consumer in Boise, Idaho, with 94 percent of those who tried them indicating they would buy the product and soon it became an indispensable part of everyday life, making it as important as a ball point pen or a stapler on a table. The communication in offices became more personal and hence post it came in handy.
Maturity -
Maturity phase is where the sales are at an all time high. The market is raided by a several new players. The competition is fierce and everyone is vying for market share during this phase. The late majority group is the group of people who start buying at this stage. On April 6, 1980, "Press n Peel" was reintroduced in US stores as "Post It Notes". The following year they were launched in Canada and Europe. One year after 3M officially launched the post it note, the packs of sticky paper raked in more than US$2 Million in sales. Post It Notes are now available in 27 sizes, 57 color and 20 fragrances and generate around $1 Billion annually and dominate the self sticky note market. Research from the NPD group indicates a 13.5 percent increase between 2006 and 2007. In 2003, the company came out with "Post It Brand Super Sticky Notes", with a stronger glue that adheres better to vertical and non smooth surfaces. Until 3M's patent expired in the 1990s Post It type notes were produced only in the company's plant in Cynthiana, Kentucky. Now post it is more used by people for reminding themselves and marking important files and locations in offices rather than just as a means of communication. In technology virtual post it notes have been created for computer in the form of desktop notes. These include 3M's own "Post It Brand Software Notes", "Stickies" in Mac OS, "Sticky Notes" in windows, or other for fee applications like ShixxNote. Additionally, some web applications have developed Post it like notes for online use.
Decline -
Decline is when the product no longer finds its place in the shopping basket. The sales decline and gradually the product fades out of the market. There is still time for the Post It Notes to see a decline.
A commercial product undergoes metamorphic stages in life. These stages constitute the product life cycle. They illustrate the various phases like induction, growth, maturity and decline of a product in the market.
A product enters into the market owing to a lot of pre launch research. The product is under constant development and the pre launch activities are carried out with rigor. Early investors and creditors are identified.
Business idea -
in 1968, a scientist at 3M in the United States, Dr. Spencer Silver, was attempting to develop a super strong adhesive, instead he accidentally created a low tack, reusable, pressure sensitive adhesive. For 5 years, Silver promoted his solution without a problem within 3M both informally and through seminars but failed to gain acceptance. In 1974 a colleague who had attended one of his seminars, Art Fry, came up with the idea of using the adhesive to anchor his bookmark in his hymnbook. Fry then utilized 3M's officially sanctioned permitted bootlegging policy to develop the idea. the original notes yellow color was chosen by accident, as the lab next door to the post it team had only yellow scrap paper to use.
Introduction -
The first sale of the product, marks the introduction of the product. The introduction stage gives weighted importance to the marketing and promotion of the product. The phase is characterized by low sales and as an outcome, low revenue and hence low profit. The product is introduced into the market and is waiting for acceptance from the consumer. This phase also sees customers known as Early adopters, who welcome new products with ease and start purchasing the the product at this stage. 3M launched the product as "press n peel" in 4 cities in 1977, but results were disappointing. People thought that the press n peel was a very expensive item compared to the ordinary, non stick scratch pads which were sold for just 7 US cents and the people who did buy it were the top executives in an organisation.
Growth -
The growth phase shows gradual pickup in sales. Revenue is generated and the product is well recognized and welcome in the market. The early majority breed of customers start purchasing start purchasing the product after the initial review showered by the early adopters. Advertising and marketing play a key role in this phase. A year later 3M instead issued free samples directly to the consumer in Boise, Idaho, with 94 percent of those who tried them indicating they would buy the product and soon it became an indispensable part of everyday life, making it as important as a ball point pen or a stapler on a table. The communication in offices became more personal and hence post it came in handy.
Maturity -
Maturity phase is where the sales are at an all time high. The market is raided by a several new players. The competition is fierce and everyone is vying for market share during this phase. The late majority group is the group of people who start buying at this stage. On April 6, 1980, "Press n Peel" was reintroduced in US stores as "Post It Notes". The following year they were launched in Canada and Europe. One year after 3M officially launched the post it note, the packs of sticky paper raked in more than US$2 Million in sales. Post It Notes are now available in 27 sizes, 57 color and 20 fragrances and generate around $1 Billion annually and dominate the self sticky note market. Research from the NPD group indicates a 13.5 percent increase between 2006 and 2007. In 2003, the company came out with "Post It Brand Super Sticky Notes", with a stronger glue that adheres better to vertical and non smooth surfaces. Until 3M's patent expired in the 1990s Post It type notes were produced only in the company's plant in Cynthiana, Kentucky. Now post it is more used by people for reminding themselves and marking important files and locations in offices rather than just as a means of communication. In technology virtual post it notes have been created for computer in the form of desktop notes. These include 3M's own "Post It Brand Software Notes", "Stickies" in Mac OS, "Sticky Notes" in windows, or other for fee applications like ShixxNote. Additionally, some web applications have developed Post it like notes for online use.
Decline -
Decline is when the product no longer finds its place in the shopping basket. The sales decline and gradually the product fades out of the market. There is still time for the Post It Notes to see a decline.
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