Technology lifecycle model for the new product – vertical-axis wind turbine (AAS CAPSTONE ASSIG)

Assignment 3
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Assignment 3
Technology lifecycle model for the new product – vertical-axis wind turbine (VAWT)
The life of a product is typically considered to start when it is made available to the target customer. A product’s life comes to an end when the manufacturer ceases manufacturing it, or does not support the product anymore. The product life cycle for VAWT describes the phases of the product from when it is launched to when it is discontinued, that is, the time period over which the product is developed, brought to the marketplace and finally removed from the marketplace. The phases that can be used in describing the lifecycle of the new product include: introduction, growth, maturity and decline. It is of note that in the initial parts of the product lifecycle, the costs incurred to promote the product might be larger in relation to the revenue that the product will be bringing in (Gunendran & Young, 2010). Nonetheless, this VAWT new product will be marketed effectively and it is expected to be successful. This will in turn make the product become more and more profitable during the succeeding phases of Growth and Maturity.
Introduction phase: during this stage, price penetration strategy will be adopted. This product will be priced rather low, at $300 per product, in order to encourage widespread adoption and market penetration. In this first stage, branding, Quality level and intellectual property and protections will be obtained in order to stimulate purchasers to purchase the product. The new VAWT product is under more consideration, since first impression is the last impression. Given that this phase will require heavy advertising so as to encourage widespread adoption and market penetration, it is expected to cost $60,000, funds that will be used in advertising and promotional activities. This initial stage is expected to last for 6 months.
Growth phase: at this stage, promotional activities will be inclined to concentrate on expanding the market for the new product into new segments geographically. Along with maintaining the existing quality of the VAWT product, new improvements and features might be done. All this is done in order to effectively compete and maintain the market share. The promotional, marketing and advertising activities will be carried out for over a period of 6 months. In regards to timing, the growth phase of the product is expected to last for roughly 4 years. It will cost $58,000 in advertising and promotional activities yearly. This phase will be supported by expanding the product family in the form of new product sizes and design features. In expanding the product family, more VAWT products will be produced such that there will be a wide product category comprising VAWT products of various sizes, specifications, features and price ranges.
Maturity phase: by the time the vertical-axis wind turbine product attains its maturity, the manufacturer making it should enjoy substantial rewards for the finance as well as time spent in developing the technology thus far. It is of note that the features of the product will continue to be invigorated from time to time. Th...