Innovation and Design / 5.5 /
Product life cycle
Innovation and Design / 5.5 /
Product life cycle
There are several key stages in the product life cycle. 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.
The product life cycle is a model that describes the stages through which a product goes from introduction to withdrawal from the market. The four main stages are launch, growth, maturity, and decline:
Launch - The launch stage is the initial period when the product is introduced to the market. This stage is characterized by high marketing and advertising costs, low sales volume, and limited brand awareness. The goal of this stage is to generate interest in the product, create a customer base, and establish a market presence.
Growth - The growth stage is the period when the product starts to gain popularity and sales volume increases rapidly. This stage is characterized by rising profits, expanding market reach, and growing brand recognition. The goal of this stage is to capitalize on the product's momentum and establish a strong market position.
Maturity - The maturity stage is the period when the product has reached its peak popularity and sales volume stabilizes. This stage is characterized by intense competition, price wars, and product differentiation strategies. The goal of this stage is to maintain profitability and extend the product's lifespan in the face of increasing competition.
Decline - The decline stage is the period when the product's popularity fades, sales volume decreases, and profits decline. This stage is characterized by decreasing market share, diminishing brand recognition, and obsolete product features. The goal of this stage is to manage the product's decline, minimize losses, and plan for its eventual withdrawal from the market.
Here is an example of how a well-known product, the Polaroid camera, went through each of the product life cycle stages:
Launch - In 1948, Edwin Land introduced the first instant camera, the Polaroid Land Camera Model 8, to the market. The camera was an instant success, as it allowed people to take and develop photographs in just a few minutes. The Polaroid camera was initially marketed towards photographers and professionals, but it quickly became popular among consumers as well.
Growth - The Polaroid camera entered the growth stage in the 1950s and 1960s, as it became increasingly popular among consumers. The company introduced new models, such as the Polaroid Colorpack camera, which made color photography more accessible to the masses. Polaroid also expanded its marketing reach, targeting families, tourists, and businesses.
Maturity - The Polaroid camera reached maturity in the 1970s and 1980s, as it became a ubiquitous product in American households. The company continued to introduce new models, such as the Polaroid SX-70 camera, which featured a folding design and instant film development. However, Polaroid faced increased competition from instant film cameras from Kodak and Fuji.
Decline - The Polaroid camera entered the decline stage in the 1990s, as digital cameras began to gain popularity. Digital cameras offered several advantages over instant film cameras, including higher image quality, lower cost, and the ability to store and share photos electronically. Polaroid struggled to adapt to the changing market and filed for bankruptcy in 2008.
Withdrawal - Polaroid was acquired by a private equity firm in 2009 and emerged from bankruptcy in 2010. The company continued to produce instant film cameras and accessories, but it never regained its former market dominance. In 2017, Polaroid announced that it would cease production of its instant film cameras.
Despite its eventual decline, the Polaroid camera left a lasting impact on the photographic industry. It made photography more accessible to consumers and helped to popularize the instant photography format. The Polaroid camera is still a popular collectible today.
A deliberate strategy by manufacturers to design products with a limited lifespan in order to encourage consumers to purchase newer models. Lightbulbs that burn out quickly, smartphones with non-replaceable batteries, cars with intentional design flaws.
When a product's design or appearance becomes outdated or unpopular due to changing fashion trends or consumer preferences. Clothing and accessories that follow short-lived fashion trends, vintage electronics with outdated aesthetics, furniture styles that fall out of favour.
When a product becomes obsolete due to the development of newer or more advanced technologies that render it less useful or efficient. Cassette tapes and VCRs in the age of digital media, floppy disks in the age of USB drives, landline telephones in the age of mobile phones
When a product becomes obsolete due to advancements in technology that render it incompatible with newer systems or standards. Old computer software that cannot run on newer operating systems, obsolete video game consoles that cannot play newer games, analog television sets that cannot receive digital signals.
Obsolescence can have a significant impact on consumers, both financially and environmentally. Planned obsolescence can force consumers to spend more money on newer products more frequently, while style and functional obsolescence can lead to the unnecessary disposal of still-usable products. Technological obsolescence can also create compatibility issues and make it difficult to access older content or data.
In recent years, there has been a growing movement against obsolescence, with consumers and businesses increasingly seeking out products that are designed to be durable, repairable, and adaptable to changing technologies. This movement is driven by a desire to reduce waste, save money, and promote sustainable consumption practices.
The predictability of the product life cycle varies depending on the product category, the pace of technological advancement, the influence of consumer trends, and the dynamics of the market. Certain product categories, such as fashion apparel, are more susceptible to rapid changes in consumer preferences and styles, making their life cycles more difficult to predict. In contrast, products in categories like industrial equipment or medical devices may have longer and more predictable life cycles due to slower technological advancements and more stable market demand.
Predicting product life cycles requires a comprehensive understanding of the product's industry, the factors that drive consumer behavior, and the competitive landscape. By analyzing historical data, tracking technological trends, and monitoring consumer preferences, designers, manufacturers, and market analysts can make informed assessments about a product's potential lifespan. However, it is important to acknowledge that unforeseen events or sudden shifts in market conditions can disrupt even the most well-informed predictions.
Here are some factors that influence the predictability of product life cycles:
Industry Maturity: Products in mature industries with slower technological advancements tend to have more predictable life cycles. For instance, household appliances like refrigerators or washing machines have relatively stable demand and are less susceptible to rapid obsolescence compared to products in the electronics industry.
Technological Disruption: Rapid technological breakthroughs can significantly shorten the life cycle of existing products. For example, the introduction of smartphones quickly rendered traditional mobile phones obsolete, while advancements in artificial intelligence may impact the longevity of current consumer electronics.
Consumer Trends: Consumer preferences and fashions can change rapidly, leading to shorter life cycles for products heavily influenced by style trends. This is particularly evident in the fashion industry, where seasonal trends and evolving style preferences drive product obsolescence.
Market Dynamics: Competitive pressures, economic conditions, and regulatory changes can also impact product life cycles. The emergence of new competitors with innovative products or shifts in consumer spending patterns can shorten a product's lifespan.
Product Design and Manufacturing: Durable materials, robust construction, and thoughtful design can extend a product's functional life, while poor quality materials and inefficient manufacturing processes can lead to premature obsolescence. Prioritizing durability, reparability, and sustainable practices can contribute to longer product life cycles.
Designers can play a significant role in extending the product life cycle by considering the following factors:
Design for durability: Designers can make products more durable by using high-quality materials, employing robust construction techniques, and incorporating features that minimize wear and tear. This approach can prolong the product's functional lifespan and reduce the need for premature replacement.
Design for modularity: Modular design allows for easy upgrades, repairs, and replacements of individual components. This flexibility enables users to extend the product's lifespan by adapting it to changing needs or technological advancements without the need for a complete overhaul.
Design for timeless aesthetics: Timeless design principles can transcend fleeting trends, making products less susceptible to obsolescence based on shifting consumer preferences. By focusing on clean lines, classic proportions, and functional elements, designers can create products that remain appealing for extended periods.
Design for serviceability: Designers can facilitate product maintenance and repair by making components easily accessible and providing clear instructions for troubleshooting and servicing. This approach empowers users to address minor issues themselves, extending the product's lifespan and reducing the reliance on external repair services.
Design for adaptability: Designers can anticipate future needs and advancements by incorporating design features that allow for upgrades and modifications. This adaptability enables products to evolve along with technological changes and consumer preferences, extending their relevance and usefulness.
Design for sustainability: Sustainable design practices, such as using recycled materials, minimizing waste, and designing for disassembly and recycling, can reduce the product's environmental impact and contribute to a circular economy. This approach extends the product's life cycle beyond its initial use by creating opportunities for reuse and repurposing.
The following are some advantages and disadvantages for a company of introducing new versions and generations of a product:
Advantages:
Maintaining market relevance and competitive advantage: By regularly introducing new versions and generations of a product, companies can stay ahead of the competition and maintain their market share. Newer versions often incorporate improved features, performance upgrades, and design innovations, making them more appealing to consumers.
Meeting evolving consumer needs and preferences: Consumers' tastes and expectations are constantly evolving, and companies that can anticipate and adapt to these changes are more likely to succeed. Introducing new versions and generations of a product allows companies to address changing consumer needs, preferences, and technological advancements.
Expanding product offerings and targeting new customer segments: New product versions or generations can expand a company's product portfolio, allowing it to reach new customer segments and tap into untapped market opportunities. This diversification strategy can increase revenue streams and strengthen the company's position in the market.
Enhancing brand image and reputation: Regularly introducing new and innovative products can enhance a company's brand image and reputation. It demonstrates a commitment to innovation, customer satisfaction, and technological advancement, making the brand more attractive to consumers.
Generating excitement and anticipation: New product introductions can generate excitement and anticipation among consumers, creating buzz around the brand and fueling interest in the company's offerings. This can lead to increased sales and a boost in brand loyalty.
Disadvantages:
Increased development costs and risks: Developing new product versions or generations requires significant investment in research and development, engineering, and marketing. There is also an inherent risk that the new product may not meet market expectations or fail to achieve the desired commercial success.
Cannibalization of existing products: Introducing new versions of a product may cannibalize sales of existing versions, leading to a decline in revenue from older product lines. This can disrupt the company's product portfolio and potentially harm its overall profitability.
Managing customer expectations and potential backlash: Consumers may develop high expectations for new product versions, and if the new product fails to meet those expectations, it can lead to negative feedback, damage brand reputation, and impact customer satisfaction.
Complexity in product management and support: Introducing new product versions or generations increases the complexity of product management and support. Companies need to maintain and support multiple versions of the same product, which can strain resources and increase costs.
Rapid obsolescence of older versions: The introduction of new product versions can quickly render older versions obsolete, leading to a decrease in their value and potentially creating waste. Companies need to have strategies in place to manage the lifecycle of older products and ensure their proper disposal or recycling.
Examples of products that have been explicitly designed to prevent obsolescence:
Dell XPS 13 and 15 laptops: Dell's XPS 13 and 15 laptops are designed with user-serviceable components, allowing owners to upgrade or replace RAM, SSD, and batteries without the need for professional assistance. This design approach extends the product's lifespan and gives users greater control over their device's performance and longevity.
IKEA furniture: IKEA furniture is designed with durability and modularity in mind. Many pieces can be easily disassembled and reconfigured, allowing them to adapt to changing needs and spaces. IKEA also offers a buy-back program for some of its furniture, encouraging customers to extend the lifespan of their IKEA products.
Lego bricks: Lego bricks have been around for decades and remain popular due to their timeless design, versatility, and durability. The bricks are designed to be compatible with each other, allowing users to create new designs and expand their collections over time. Lego also offers a replacement parts service, ensuring that even older sets can be repaired and enjoyed.
Patagonia, an outdoor apparel company, is known for its commitment to durable, high-quality clothing and its Worn Wear program, which encourages customers to repair and reuse their Patagonia garments rather than discarding them. The company also offers repair services and sells spare parts to extend the lifespan of its products.