Product life cycle is an important concept in product design. It helps companies plan for the future of their products and decide when to introduce them to the market.
The product life cycle is divided into four stages: introduction, growth, maturity, and decline. Each stage is characterized by different factors that can have a major impact on the success of the product.
The introduction stage is when a company introduces a new product to the market. At this stage, the company needs to make sure that it has enough resources to cover marketing costs and production costs.
This includes advertising and promotions, as well as research and development costs. The goal of this stage is to create awareness about the product so that potential customers will be aware of it and ultimately purchase it.
The growth stage is when a product has been introduced and starts gaining traction with customers. During this stage, a company focuses on increasing sales and expanding its customer base by developing more features or improving existing features of the product. Companies also focus on improving their customer service during this phase in order to increase customer satisfaction and loyalty.
The maturity phase is when a product has reached its peak in terms of sales, popularity, or market share. At this point, there may be little room for further growth so companies focus more on maintaining their current position in the market rather than trying to expand further. They may also focus on cost-cutting measures in order to remain competitive in their price range or introduce new products or services that complement their existing ones.
Finally, there is the decline phase which occurs when sales start declining due to changing market conditions or competition from other products or services. At this point, companies may decide to discontinue the product or modify it to meet changing market needs. Alternatively, they may also decide to reposition it as a niche offering with limited features but Targeted at a specific segment of customers who are willing to pay extra for such features.
Understanding and managing each stage of the product life cycle helps companies come up with effective strategies for each stage and maximize their returns from each product over time. It also helps them anticipate any potential risks associated with introducing new products or modifying existing ones so that they can take preventive measures before any damage takes place.
Conclusion: Product life cycle is an important concept in product design because it provides valuable insights into how long a particular product will remain successful in the marketplace and how much effort should be devoted towards maintaining its current position in terms of sales, popularity or market share.