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The first priority would be to find out if the customer is willing to pay the price for the product. Since the product would have a short life cycle, it is essential to have an effective pricing strategy in place.

Then it is very difficult to predict whether the product will be successful or not. Whether the product would be able to add to the existing Brand Equity of the company or capitalize on it and build it's unique brand equity.

Another issue with products having short product life cycle is that the retailer and the whole-saler is always in dilemma of how much to stock. In case the product fails, then the remaining stock would be a waste, and if the stock is not sufficient enough, then there is a chance of creating unsatisfied customers, which in turn would damage the existing brand equity of the company. Therefore, the challenge is to strike a balance between sufficient and insufficient stock.

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* Contributed by: -
Saikat Dey & Madhulika Verma,
ICFAI Business School, Gurgaon.