[5.5] Product Life Cycle

Essential idea: There are several key stages in the product life cycle

Nature of Design:

Designers need to consider the whole product cycle of potential products, services and systems throughout the design cycle and beyond. Products may have an impact not only on the direct consumer but also on society at large and the environment.

Key stages of the Product Life Cycle: Launch, Growth, Maturity, Decline

Although the designer is an integral part of the process, he or she is not necessarily in control (unlike in the design process).

Introduction / Launch Phase:

• • • necessary to launch the product with the right image and at the right price. needs infrastructure / distribution to support new product requires significant investment.

Growth Phase:

• • when sales are increasing at their fastest rate. the market has accepted the product and sales begin to increase.

Maturity:

• sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation.

Decline Phase:

• Decline – final stage of the cycle, when sales begin to fall

Decline Phase:

• Decline – Could the product be re-launched? Does the product need modifying? Is a new product needed? Is it time to move on? Is a new market needed?

Shorter Product Life Cycles

• Why?

Products at different stages of the life cycle

Extending the Product Life Cycle

• Extension strategies extend the life of the product before it goes into decline. Again businesses use marketing techniques to improve sales • What strategies might a company use to extend the life cycle of their product?

Extending the Product Life Cycle

• • • • • Advertising – try to gain a new audience or remind the current audience Price reduction – more attractive to customers

Product versioning

Explore new markets – selling the product into new geographical areas or creating a version targeted at different segments New packaging – brightening up old packaging or subtle changes

Extending the Product Life Cycle

Obsolescence

• Planned obsolescence or built-in obsolescence is a policy of planning or designing a product with an artificially limited useful life

Obsolescence - Style (Fashion)

• Planned obsolescence or built-in obsolescence is a policy of planning or designing a product with an artificially limited useful life

Obsolescence- Functional obsolescence • Particular items may become functionally obsolete when they do not function in the manner that they did when they were created

Obsolescence - Planned obsolescence • the objective of generating long-term sales volume by reducing the time between repeat purchases

Obsolescence - Technological • usually occurs when a new product or technology supersedes the old

Obsolescence - Advantages • Manufacturers can sell more products • Stimulates demand • More control over demand • Can influence a company's decisions about product engineering - use the least expensive components

Obsolescence - Disadvantages • • • Potential backlash of consumers Ethics Creates more waste, pollution, uses more natural resources, and results in more consumer spending.

Test Yourself

•

What are the 4 stages of the product life cycle?

Test Yourself

• • • • 1.What has had most impact on the shortening of the product cycle?

A. Computer aided design B. Better qualified designers C. More manufacturers D. Technology

Test Yourself

• • • • What has the least influence on the product cycle?

A. Planned obsolescence B. Fashion C. New technology D. Ergonomics

Test Yourself

• • • • Why do mobile phones tend to have short product cycles?

A. They are in the mature stage of development B. Planned obsolescence C. They are sold in a competitive market D. The market is saturated

Test Yourself

• • • • What is a characteristic of planned obsolescence but not fashion?

A. Predictable product life cycle B. Selection of material C. Product quality D. Aesthetics

Test Yourself

• • • • What is a characteristic of the product cycle?

A. It has become shorter B. It has become longer C. The designer is not involved D. The designer usually has full control

Test Yourself

• • • • What is an advantage of planned obsolescence for the consumer?

A. More choice of products B. Cheaper products C. More reliable products D. More stylish products

Test Yourself

• • • • Which products are in the mature stage of their product life cycle?

A. Solar panels B. Smart buildings C. Ballpoint pens D. Steam engines

Test Yourself

Which combination of “material obsolescence” and “technological obsolescence” encourages reuse?

A.

B.

Material obsolescence

Obsolete Not obsolete C.

D.

Obsolete Not Obsolete

Technological obsolescence

Obsolete Not Obsolete Not obsolete Obsolete