Business Question

Consider the four (4) stages of the product life cycle (introductory, growth, maturity, and decline) for the company you selected in the Week 3 DQ and Discuss how cultural context and location of the marketing strategy affects the product life cycle stages.

Ensure that you support your response with at least two (2) peer-reviewed sources plus the textbook. If possible, use resources outside of the USA and include perspectives from different countries, contexts, and cultures.

Introduction
Define your marketing objectives under each one of the four stages
DRAFT
In marketing, understanding the Product Life Cycle (PLC) is crucial for strategic
planning and decision-making. The PLC serves as a valuable tool for analyzing market
dynamics, tracking historical trends, and forecasting future market conditions (Book).
In this paper, we will examine the PLC through the lens of Hailey Bieber’s skincare
brand, Rhode. Launched on June 15, 2022, Rhode aims to address common skin care
concerns while promoting affordability and environmental sustainability. Hailey’s
vision for Rhode stems from the belief that the abundance of skincare options can be
overwhelming, leading to a focus on offering a curated selection of high-quality
products. Initially introducing a 3-product skincare line, Rhode emphasizes its
commitment to clean and effective skincare solutions. This paper will explore how
Rhode navigates through various stages of the PLC, from introduction to potential
maturity and beyond.
In the context of the PLC, the introductory phase marks the initial launch of a product
into the market. For Rhode, entering the skincare industry amidst a competitive
landscape required strategic planning and a strong marketing approach. With Hailey
Bieber’s celebrity status lending credibility to the brand, Rhode capitalized on her
influence to generate anticipation and excitement among consumers. Utilizing various
social media platforms, Rhode strategically teased its audience with glimpses of its
products before the official launch, building anticipation and curiosity. The brand
invested significantly in marketing efforts to create widespread awareness, highlighting
its commitment to offering high-quality skincare solutions. Partnering with marketing
and skincare experts, Rhode meticulously crafted its brand image and product lineup to
resonate with its target audience. Upon its release, Rhode introduced three key skincare
products, including the Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip
Treatment, each designed to address specific skincare needs while adhering to the
brand’s standards of cleanliness and quality. Rhode’s successful entry into the market
can be attributed not only to its innovative product offerings but also to its strategic use
of scarcity marketing, creating a sense of urgency and exclusivity among consumers.
In the Growth phase of the Product Life Cycle, products experience a rapid increase in
sales as they gain traction in the market. For Rhode, this phase marked a period of
significant expansion and success, driven by the growing popularity of its Peptide Lip
Treatment. Sales figures in 2023 indicated a remarkable 58% year-over-year increase in
lip treatment sales, reaching $207.9 million. Within just 18 months of its launch, Rhode
surpassed the million sold milestone for its Peptide Lip Treatment, highlighting its
widespread appeal among consumers. To capitalize on this momentum, Rhode
introduced innovative variations of its bestselling product, such as the limited-edition
“Strawberry Glaze Peptide Lip Treatment” and the Peptide Lip Tint, a tinted version
offering a glossy finish. The brand’s strategic expansion efforts extended beyond
product development to include broadening its distribution network, with the addition
of five new European markets. Rhode utilized social media platforms like TikTok, using
Hailey Bieber’s influence to tease its audience and generate excitement for its new
offerings. Despite facing competition from new competitors and alternative products,
Rhode’s commitment to product innovation and strategic marketing ensured its
continued growth and market dominance.
In the Maturity phase of the PLC, products experience a transition from rapid growth
to a period of sales stability. For Rhode, this phase is exemplified by the introduction of
its first cleanser earlier in 2024, marking the expansion of its product line to meet
evolving consumer needs. Priced at $28, the cleanser represents Rhode’s fifth product
offering, alongside its popular Peptide Lip Treatment and other skincare essentials.
With the addition of the cleanser, Rhode aims to sustain its market presence and cater
to a broader range of skincare concerns. Despite the market nearing saturation and
sales growth slowing down, Rhode’s strategy of diversifying its product portfolio
emphasizes its commitment to maintaining relevance and meeting the demands of its
customer base. As the brand continues to widen its product range and adapt to
changing market dynamics, it aims to prolong the maturity phase and sustain its
position as a key player in the beauty industry.
In the Decline phase of the PLC, sales begin to decrease, posing challenges for
sustaining the product’s market presence. For Rhode, a celebrity-driven brand, the
decline may be attributed to various factors, including the public perception of its
founder, Hailey Bieber, and quality issues with its products. As a celebrity figure, any
controversies or scandals involving Hailey Bieber can directly impact Rhode’s success,
leading to a decline in sales and consumer trust. Additionally, reports of allergic
reactions and quality concerns among customers have tarnished Rhode’s reputation
and contributed to its sales decline. Instances such as undisclosed allergens in products
and quality control issues can undermine customer confidence and accelerate the
decline phase of the product life cycle. However, despite facing challenges in the decline
phase, companies like Rhode have the opportunity to revitalize their products through
innovation, addressing quality concerns, and adapting to changing market conditions,
potentially initiating a new growth phase and extending the product’s lifecycle.
Explain how you will use the marketing mix to create your marketing strategy under
each one of the four stages.
Stage 1: Introduction
At the onset, Rhode Beauty faces the daunting task of establishing itself in a
crowded marketplace. To captivate consumers’ attention, the brand must unveil
innovative and compelling product offerings that resonate with its target audience.
This entails meticulous product development to ensure uniqueness and relevance.
Moreover, adopting a penetration pricing strategy can entice price-sensitive
consumers to try Rhode Beauty’s offerings. Carefully selecting distribution channels,
whether through exclusive partnerships with select retailers or leveraging the power
of e-commerce platforms, is crucial to ensure widespread availability. Additionally,
strategic promotional efforts, such as influencer collaborations and social media
campaigns, are instrumental in generating buzz and fostering brand awareness.
Stage 2: Growth
As Rhode Beauty transitions into the growth stage, expansion and differentiation
become imperative. Building upon its initial success, the brand must diversify its
product portfolio to cater to evolving consumer preferences. Introducing new
variants, formulations, or product categories can broaden Rhode Beauty’s appeal
and capture a larger market share. Adjusting pricing strategies to reflect the value
proposition of its products while remaining competitive is essential. Moreover,
expanding distribution channels, both domestically and internationally, enables
Rhode Beauty to tap into new markets and amplify its reach. To foster brand loyalty
and sustain momentum, ongoing promotional campaigns, loyalty programs, and
strategic partnerships with influencers and beauty enthusiasts are indispensable.
Stage 3: Maturity
In the maturity stage, Rhode Beauty faces the challenge of maintaining relevance
and market share amidst heightened competition. To prolong the product lifecycle
and sustain profitability, the brand must focus on product optimization and
innovation. This may involve revamping existing offerings, introducing limited-edition
collections, or capitalizing on emerging trends. Pricing strategies should be
recalibrated to reflect market dynamics while safeguarding profitability. Optimizing
distribution channels ensures seamless accessibility for consumers, whether
through traditional retail outlets or online platforms. To reinforce brand positioning
and differentiate Rhode Beauty from competitors, strategic promotional initiatives,
such as experiential marketing events and collaborative campaigns with industry
influencers, are imperative.
Stage 4: Decline
As Rhode Beauty navigates the decline stage, proactive measures are necessary to
mitigate the impact of diminishing sales and market saturation. Streamlining the
product portfolio by discontinuing underperforming SKUs and focusing on core
offerings can optimize resources and minimize losses. Implementing price
adjustments, such as clearance sales or bundle deals, facilitates inventory clearance
and maintains competitiveness. Rationalizing distribution channels and
consolidating efforts on high-performing channels enhance operational efficiency
and reduce costs. Strategic promotional activities, such as targeted marketing
campaigns and loyalty incentives, help to sustain customer engagement and
mitigate brand erosion.
Discuss the level of competition under each stage as you develop your strategy.
In each phase of the Product Life Cycle (PLC), the level of competition for Hailey Bieber’s
skincare brand, Rhode, evolves along with the brand’s growth and market dynamics:
Introduction Phase:
During the introduction phase, Rhode faced moderate to high competition in the skincare
industry. While Hailey Bieber’s celebrity status lent credibility to the brand, the skincare
market is saturated with numerous established brands and new entrants. However, Rhode
strategically utilized scarcity marketing and Hailey’s influence to create anticipation and
excitement, helping to distinguish itself from competitors.
Growth Phase:
Rhode experienced intense competition during the growth phase, especially with the success
of its Peptide Lip Treatment. The rapid increase in sales attracted attention from competitors,
leading to the introduction of alternative lip treatments and similar products. Despite facing
competition, Rhode’s focus on product innovation and strategic marketing efforts allowed it
to maintain market dominance and sustain its growth trajectory.
Maturity Phase:
In the maturity phase, Rhode is facing heightened competition as the skincare market became
saturated, and sales growth stabilized. With the introduction of additional products like the
cleanser, Rhode aimed to diversify its offerings and cater to evolving consumer needs.
However, competition intensified as other brands also expanded their product lines and vied
for market share. Rhode’s strategy of diversification helped sustain its market presence but it
requires continued innovation to differentiate itself from competitors.
Decline Phase:
In the decline phase, Rhode might encounter challenges due to various factors, including
public perception issues related to its founder, Hailey Bieber, and quality concerns with its
products. Negative publicity or controversies surrounding celebrity figures can directly
impact brand reputation and contribute to declining sales. Additionally, quality issues and
allergic reactions reported by customers can further erode trust and competitiveness. To
counteract the decline phase, Rhode would need to address these issues promptly, innovate its
products, and rebuild consumer confidence to remain competitive in the market.
Throughout the PLC, Rhode’s ability to navigate competition relies on strategic decisions,
product innovation, and maintaining brand reputation amidst evolving market dynamics.
Discuss how cultural context and location of the marketing strategy affects the product
life cycle stages.
Reference