Product Life Cycle Flashcards
Product life cycle (PLC)
The introduction, evolution/growth, maturity, decline and replacement cycle of products
Introduction
Product is launched with appropriate publicity following market research and sales start to take off
Evolution/growth
Advertising helps product sales to grow as consumers move to this product from previous ones
Maturity
The period of peak sales - it is important to maintain this period as long as possible
Decline/removal
Consumers who wish to buy the product will have done so and product is eventually withdrawn as sales start to fall
Extension/replacement
Updated, improved version is released to maintain sales
Extension strategies examples
These are applied to maintain sales
Examples include:
Smartphones being redesigned and modified - Apple iPhone and Samsung Galaxy
Toyota Corolla which has been redesigned 11 times in 50 years
Demand pull
Demand by consumers for desirable features
Designers often respond to this
Examples include improved battery life or larger memory in a smartphone
Technology push
Research and development lead to a push of new ideas by companies
Consumers must be sold the merits of new ideas and features
Google failed to convince consumers that Google Glass head mounted computer device was worth the expense
Planned obsolescence
The design and manufacture of products requiring replacement after a set time period or on a regular basis
E.g. Smartphones start to fail or become ‘unfashionable’ with time
Factors may include unavailability of spare parts or software incompatibility
Modular and upgradable Fairphone is a more customer friendly sustainable approach
Evolution of products
Gradual change due to new technologies, manufacturing methods, materials etc
Research and development (RD) departments explore and develop new ideas - this is very expensive Apple spent $2.5 billion in 2016
