QUESTION 1
Explain the stages in the product life cycle of the MDs footwear brand and state which stage it is now at.
 
 

Background T-Sole Ltd produces fashion boots and industrial footwear, which are sold under the brand name of MDs. This footwear brand can only be bought in specialist retail outlets throughout the UK or from their own shop, which is situated in the heart of London. During the mid-1980s to the mid-1990s the company successes. Their footwear range was particularly student segment of the market, because of their other segments of the market were also increasing, as achieved huge popular with the durability. Sales to were their profits. The managers of the company decided to expand their factory to cope with this increased demand, which also meant doubling their workforce. The present situation Their factory is situated in a rural area approximately 200 miles from their London store. New employees were recruited from the locality and are given one day's training in the production process when they first started. Management introduced a 'piecework' rate, which means employees are paid for each item of footwear they produce. The managers believed this system is an incentive to increasing productivity. However, the new recruits made many mistakes and a lot of the footwear produced had to be rejected. The experienced workers started rushing their work in order to increase their wages and this led to an increased number of consumer complaints regarding faulty or poor quality goods. Added to this was the increased competition from trainer manufacturers. The MDs brand saw its sales figures drop by 50 per cent within three years, which was a huge loss of market share.