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 Huts web site was redesigned and many attractive pictures of the new pasta were added in their homepage.
They also created a new URL
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 customers reaction. As in Pasta Hut, they produced...