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Pasta Hut And Pizza Hut , Product Life Cycle

1025 words - 4 pages

On April 2008, Pizza Hut announced the introduction of a new product line called the "Tuscani Pasta". Like any product, this product has a life cycle. Different strategies should be maintained through each stage of the cycle in order to move the product throughout the cycle.1.Introduction Stage:The main purpose of this stage is to introduce the new product to the market. The company must be aware of the tremendous amount of time and money which will be spent at this stage in order to attract consumers, grab their attention to this new product, and make them try it.In this stage, there are several strategies for the company to follow:•The company must well advertise their new product and obtain a trademark for it so customers will be aware about this product. Pizza Hut had spread many of announcements about their new product "Pasta Hut". They alerted the customers by several ways:Pizza Hut's web site was redesigned and many attractive pictures of the new pasta were added in their homepage. They also created a new URL to market the Tuscani Pasta. In addition, they gave out coupons and they advertized the new product everywhere in the newspaper, magazines, and TV.•At this stage, sale growth might be slow. So, it is recommended to keep the price relatively high in order to overcome the high costs associated with introducing the new product. Therefore, the revenue may be low, too.•At the beginning, the distribution must be limited until people become more familiar with the product. Pasta Hut has followed this pattern by introducing this new product in main cities that are known with their multi-cultural population.•A company should also start first with one or few products in order to test the customer's reaction. As in Pasta Hut, they produced only two types: creamy Chicken Alfredo and Meaty Marinara.2.Growth Stage:In the growth stage, the highest rate of sales for the company is maintained. The raise in the number of customers who are aware of the product will lead to rapid growth in revenue. During this stage, competitors have just started to arise and they are still in the introduction stage.This stage is the best time of every new product where the costs are less and the revenue is high and strategies can include:•Increase the amount of advertisements to build brand preferences and to attract new target market. For instance, Past Hut made more ads and added new slogans to the ads to attract more customers. They gave it an Italian name (Tuscani Pastas) to give it a classy Italian atmosphere and to attract different ethnic groups. They also put some ads, which shows the pastas as a luxuries meal and not a fast food.•Price can be maintained at the same level if the company noticed the demand is increasing. In some situations, the company can reduce the price as a strategy to attract new customers who cares about the price. In the case of Tuscani Pasta, a reduction in the price can be a clever idea to attract students...

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