5.5.2 Principles of the Product Life Cycle Notes

Key Stages of the Product Lifecycle and Strategies for Sustainability

Imagine you’ve just bought the latest smartphone. You’re thrilled with its sleek design and cutting-edge features. But fast forward a few years: a newer model is released, your phone feels outdated, and its performance has slowed. What happens next? Do you replace it, repair it, or hold on to it for as long as possible? This decision is shaped by the product lifecycle, a model that describes the journey of a product from its introduction to its eventual decline. Understanding this lifecycle is crucial, not just for manufacturers and designers, but also for consumers and society at large.

This section explores the key stages of the product lifecycle, the concept of obsolescence, product versioning, and lifecycle predictability. Let’s break these ideas down step by step.

Key Stages of the Product Lifecycle

The product lifecycle consists of four main stages: launch, growth, maturity, and decline. Each stage represents a phase in the product's journey, influencing sales, marketing strategies, and product development.

Launch: Introducing the Product to the Market

The launch stage is when the product is introduced to consumers for the first time. At this point, manufacturers focus on creating awareness and attracting early adopters. Pricing strategies can vary, some companies may use aggressive pricing to capture market share, while others may position the product as a premium offering to recoup research and development costs.

Growth: Expanding Sales and Market Share

During the growth stage, sales increase as the product gains popularity. Manufacturers may introduce modifications or new features to stimulate demand and maintain momentum. Pricing typically stabilizes, as the focus shifts to meeting growing demand rather than capturing market share.

Maturity: Plateauing Growth as Market Saturation Occurs

In the maturity stage, sales growth slows as the market becomes saturated. Competition intensifies, prompting manufacturers to differentiate their products through features, branding, or pricing strategies. Some companies may lower prices to attract customers from competitors.

Decline: Reduction in Demand and Phasing Out

Finally, the decline stage occurs when demand decreases due to changing consumer preferences, technological advancements, or market saturation. Companies may respond by heavily discounting the product, introducing minor updates to extend its lifespan, or discontinuing it altogether.

Obsolescence: Planned and Unplanned

Obsolescence refers to the process by which a product becomes outdated or no longer useful. While some obsolescence occurs naturally due to technological advancements, manufacturers often design products with a limited lifespan, a practice known as planned obsolescence.

Types of Planned Obsolescence

1. Style (Fashion) ObsolescenceProducts are designed to become outdated as aesthetic trends change. For example, clothing brands release new collections each season, encouraging consumers to replace perfectly functional items.
2. Functional ObsolescenceProducts are designed with limited durability or repairability. For instance, some appliances are built with components that are difficult to replace, forcing consumers to buy a new model.
3. Technological ObsolescenceAdvances in technology render older products less desirable or incompatible. An example is the transition from DVDs to streaming services, which made DVD players largely obsolete.