, PLEASE USE THIS DOCUMENT AS A GUIDE TO ANSWER YOUR ASSIGNMENT
QUESTION 1
1. Europcar is in the process of introducing a new product to the international market. Explain
in detail the five (5) stages of the international product life cycle and practically apply each stage
to Europcar.
The International Product Life Cycle (IPLC) consists of five stages through which a product goes as
it enters and develops in international markets. These stages include Introduction, Growth, Maturity,
Saturation, and Decline.
1. Introduction Stage
This stage marks the launch of the product into the international market. It is characterized by low
sales, high marketing costs, and limited competition. The focus is on building awareness and
attracting early adopters.
Practical Application to Europcar: Europcar’s initial entry into South Africa in 2009 mirrors
this stage. The company launched with a dual-branding strategy incorporating Imperial Car
Rental and Europcar. The goal was to establish a market presence without losing existing
customers (Europcar, 2013). The company invested heavily in brand awareness, marketing
efforts, and customer education to build recognition for the new brand. The introduction of
Europcar’s international reputation combined with local heritage helped to build trust and
credibility.
2. Growth Stage
In this phase, the product gains acceptance, sales increase, and competitors may begin to enter the
market. There is often an improvement in product features or offerings, and the focus shifts to
market penetration.
Practical Application to Europcar: Europcar’s growth stage began after the 2009 launch. The
brand quickly gained market share and grew to become South Africa's second-largest car rental
company, accounting for about one-third of the market (Europcar, 2013). Europcar expanded
its presence through global partnerships, allowing it to increase its inbound leisure and
corporate businesses. The brand’s global network of 5,300 rental agencies in 150 countries also
helped fuel this growth by offering customers consistent service worldwide.
3. Maturity Stage
The product now enjoys widespread acceptance. Sales growth slows as the market becomes saturated.
Companies focus on differentiating their product, improving customer loyalty, and defending market
share against competitors.
Practical Application to Europcar: By 2013, Europcar had firmly established its position in
South Africa. At this point, the company’s focus shifted to offering a differentiated customer
experience through personalized services like chauffeur services and seamless mobility
solutions (Europcar, 2013). The “Moving Your Way” brand promise was a strategic move to
create stronger emotional connections with customers. Europcar also focused on its operational
efficiency, customer satisfaction, and continuous innovation to retain its growing customer
base and defend its position against competitors.
QUESTION 1
1. Europcar is in the process of introducing a new product to the international market. Explain
in detail the five (5) stages of the international product life cycle and practically apply each stage
to Europcar.
The International Product Life Cycle (IPLC) consists of five stages through which a product goes as
it enters and develops in international markets. These stages include Introduction, Growth, Maturity,
Saturation, and Decline.
1. Introduction Stage
This stage marks the launch of the product into the international market. It is characterized by low
sales, high marketing costs, and limited competition. The focus is on building awareness and
attracting early adopters.
Practical Application to Europcar: Europcar’s initial entry into South Africa in 2009 mirrors
this stage. The company launched with a dual-branding strategy incorporating Imperial Car
Rental and Europcar. The goal was to establish a market presence without losing existing
customers (Europcar, 2013). The company invested heavily in brand awareness, marketing
efforts, and customer education to build recognition for the new brand. The introduction of
Europcar’s international reputation combined with local heritage helped to build trust and
credibility.
2. Growth Stage
In this phase, the product gains acceptance, sales increase, and competitors may begin to enter the
market. There is often an improvement in product features or offerings, and the focus shifts to
market penetration.
Practical Application to Europcar: Europcar’s growth stage began after the 2009 launch. The
brand quickly gained market share and grew to become South Africa's second-largest car rental
company, accounting for about one-third of the market (Europcar, 2013). Europcar expanded
its presence through global partnerships, allowing it to increase its inbound leisure and
corporate businesses. The brand’s global network of 5,300 rental agencies in 150 countries also
helped fuel this growth by offering customers consistent service worldwide.
3. Maturity Stage
The product now enjoys widespread acceptance. Sales growth slows as the market becomes saturated.
Companies focus on differentiating their product, improving customer loyalty, and defending market
share against competitors.
Practical Application to Europcar: By 2013, Europcar had firmly established its position in
South Africa. At this point, the company’s focus shifted to offering a differentiated customer
experience through personalized services like chauffeur services and seamless mobility
solutions (Europcar, 2013). The “Moving Your Way” brand promise was a strategic move to
create stronger emotional connections with customers. Europcar also focused on its operational
efficiency, customer satisfaction, and continuous innovation to retain its growing customer
base and defend its position against competitors.
