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Bachelor of Business Administration (Hons) Finance (BA242)

The document discusses the product life cycle of Xing Fu Tang Boba Milk Tea in Malaysia. It goes through each stage of the product life cycle: product development, introduction, growth, maturity, and decline. In the introduction stage, sales of Boba Milk Tea were slow as it was new to the market. In the growth stage, sales increased as it became a trend but competition also emerged. In maturity, sales slowed as competition increased overcapacity. In decline, Xing Fu Tang maintained Boba but lowered production and focused sales in high traffic areas.

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845 views3 pages

Bachelor of Business Administration (Hons) Finance (BA242)

The document discusses the product life cycle of Xing Fu Tang Boba Milk Tea in Malaysia. It goes through each stage of the product life cycle: product development, introduction, growth, maturity, and decline. In the introduction stage, sales of Boba Milk Tea were slow as it was new to the market. In the growth stage, sales increased as it became a trend but competition also emerged. In maturity, sales slowed as competition increased overcapacity. In decline, Xing Fu Tang maintained Boba but lowered production and focused sales in high traffic areas.

Uploaded by

shafirahmamat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Bachelor of Business Administration (Hons) Finance (BA242)

Principles and practice of Marketing (MKT420)

D1BA2421A

Product Life Cycle


Boba Milk Tea Life-Cycle

Every product in the market have its own life-cycle. Product life-cycle are divided
into five stages which are product development, introduction, growth, maturity and
decline. There are three types of Product life-cycle strategies which are style, fashion
and fad. For example, Xing Fu Tang Boba Milk Tea having fads which is the
temporary periods of unusually high sales driven by consumer enthusiasm and
immediate product or brand popularity.

First and foremost, product development. In this stage, Xing Fu Tang have made
an investment to made their new product which Boba Milk Tea. The investment is for
the research and development of their new product. This is to ensure that their
product fulfill the taste of customer.

Besides, introduction stage. At this stage, the sales growth are slow since Xing
Fu Tang Boba Milk Tea still new in the market. This situation leads to little profit for
Xing Fu Tang Boba Milk Tea. This is due to the lack of information about this
product. Xing Fu Tang have made a large investment for high distribution and
promotion expense by expanding their outlet in Malaysia.

Next, growth stage. In this stage, the sales of Xing Fu Tang Boba Milk Tea have
increases. This is because Boba Milk Tea have become the new trend among
Malaysians. However, there are a lot of competitors starting to sell Boba Milk Tea
too. For example, Secret Recipe and Family Mart launching Boba Milk Tea as their
new product. This leads to decline price of Xing Fu Tang Boba Milk Tea.

Last but not least, maturity stage. During this stage, the sales of Boba Milk Tea
become slowdown. This is because there is overcapacity of competitors selling Boba
Milk Tea. Due to slowdown of sales, Xing Fu Tang getting the R&D support for
product modifying in order to produce new flavour of Boba drinks. Xing Fu Tang also
makes a lot of promotions in social media like sponsored ads at Instagram, YouTube
and Facebook to attract customer.
Lastly, decline stage. At this stage, Xing Fu Tang still maintain their product Boba
as their main menu. However, Xing Fu tang lowering the harvest for the product and
selling the product at potential place like Kuala Lumpur. This is because city is the
place where the most people visiting everyday.

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