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Cyclical Marketing Case Study

900 Words4 Pages

Executive Summary

Mature and Cyclical Product Market

The mature market is the third stage in the product life cycle that the sales reach their peak (see Figure 1) and the market becomes saturated as there are fewer new customers. The majority of the consumers who are ever going to purchase the product have already done so. In a mature product market, there are the highest levels of competitions that many companies are competing for a share of the market. The product category is well-known, which is no longer making the news. Because the channels are pretty full, it is hard to get new product into a store. There are already many different products in the segment. It presents manufacturers with a wide range of challenges as it is very difficult …show more content…

A cyclical market experiences fluctuating demand for the product due to factors without the product. In this case there are no prospects because the movement of the product is not consistent. When the companies are characterized as cyclical or non-cyclical, it is typically with respect to the overall business cycle. (A cyclical pattern is one that has wave-like trends or cycles.) Cyclical markets have seasonal goods and services that are popular at a certain time of the year. For example, the demand for toys is high during gift giving holidays and that of ice cream is high during summer months and low during winter months. Demand for industrial products like heavy machinery and consumer durables are affected by macro-economic conditions, making companies in these sectors cyclical. In contrast, basic consumer necessities such as food and pharmaceuticals are non-cyclical. Mature companies and industries tend to be more cyclical than young ones. Because cyclical companies tend to be mature and mature companies tend to keep at least some debt on their balance sheet, the earnings pattern of a cyclical company will often be the most cyclical characteristic of that …show more content…

Malaysia Airline is operating in a mature and cyclical product market as there are a lot of airlines competing with him for a share of the market and the air tickets are actually seasonal goods which the demands are fluctuating. A chronically loss-making enterprise, Malaysia Airlines saw it finances turn completely unsustainable in 2014. It posted a second-quarter net loss of MYR305.7million (USD95.1million) exacerbated by the presumed missile strike of MH17 and the loss of MH370 tragedies. The incidents claimed the lives of 524 passengers and crewmembers and led to decision to furlough 30 percent of the airline’s workforce and remove several routes from its long-haul network in favor of Asian regional

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