For 6th Semester Polytechnic All Branch Students
Written by Garima Kanwar | Blog: Rajasthan Polytechnic
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Course Code 63001(Same in All Branches of Engg.)
Course Title Product Design
2. PRODUCT LIFECYCLE
The Product Lifecycle (PLC) is the sequence of stages that a product goes through from its introduction to the market to its eventual decline. These stages are:
- Introduction Stage: The product is launched, and sales grow slowly.
- Growth Stage: The product gains popularity, and sales increase rapidly.
- Maturity Stage: Sales growth slows down, and the product reaches its peak market penetration.
- Decline Stage: Sales begin to fall as newer products or technologies replace it.
2.1. The Challenges of Product Development
Product development is a complex process, and there are many challenges that businesses face, such as:
Market Uncertainty: It’s difficult to predict how the market will respond to a new product.
- Example: A company launching a new gadget might face uncertain demand.
High Costs: Product development can be expensive, from research and development (R&D) to marketing.
- Example: Developing a new software tool can cost millions in R&D before seeing any profits.
Competition: Competitors might release similar products, affecting market share.
- Example: After Apple’s success with the iPhone, other companies quickly launched their own smartphones.
Consumer Preferences: It’s difficult to predict exactly what consumers want, and tastes can change quickly.
- Example: The sudden popularity of fitness trackers like Fitbit.
2.2. Product Analysis
Product analysis involves examining a product’s features, performance, and the market it serves to determine its strengths, weaknesses, and potential for success. This can involve:
SWOT Analysis: Analyzing a product’s Strengths, Weaknesses, Opportunities, and Threats.
Market Analysis: Understanding the product’s target audience and how it compares to competitors’ offerings.
- Example: Analyzing how well a new energy drink performs against established brands like Red Bull.
Financial Analysis: Examining costs, revenues, and profits to evaluate the product’s economic potential.
2.3. Product Characteristics
Product characteristics are the features that define a product and make it unique. These include:
Quality: How well the product performs its intended function.
- Example: A high-quality smartphone will have better battery life, clearer camera quality, and faster processing.
Design: The look, feel, and usability of the product.
- Example: The Apple iPhone is known for its sleek, modern design.
Features: The attributes or functionalities that the product offers.
- Example: A smartwatch might offer fitness tracking, heart rate monitoring, and notifications.
Branding: The reputation and image associated with the product.
- Example: Nike is known for high-performance athletic wear.
2.4. Economic Considerations
When developing a product, several economic factors need to be considered:
Cost of Production: How much it costs to manufacture the product, including materials, labor, and overhead.
- Example: The cost of raw materials for producing a tablet (like glass, aluminum, and screen components).
Pricing Strategy: Setting a price that maximizes profits while being competitive in the market.
- Example: A luxury car will have a high price point, while a budget car will be priced lower.
Profit Margins: The difference between the cost of production and the selling price.
- Example: A designer handbag has a high profit margin because of its premium pricing.
Market Size and Potential: Estimating how large the target market is and whether the product will generate enough sales to be profitable.
2.5. Production and Marketing Aspects
Production and marketing are key components of product development:
Production Aspects:
- Manufacturing: Deciding how and where to produce the product.
- Example: Choosing between domestic or overseas manufacturing for a new tablet.
- Supply Chain Management: Ensuring that raw materials, components, and finished products are delivered on time.
- Manufacturing: Deciding how and where to produce the product.
Marketing Aspects:
- Market Segmentation: Identifying different segments of consumers who might be interested in the product.
- Example: Segmenting a laptop market into categories like students, professionals, and gamers.
- Promotional Strategy: Deciding how to advertise and promote the product.
- Example: Running a social media campaign for a new sneaker release.
- Market Segmentation: Identifying different segments of consumers who might be interested in the product.
2.6. Characteristics of Successful Product Development
Successful product development often shares common characteristics, such as:
Innovation: Developing new and creative ideas that meet customer needs.
- Example: The iPhone revolutionized the smartphone industry with its touchscreen design.
Customer-Centric: Products are developed with a clear understanding of consumer desires.
- Example: The development of Tesla’s electric cars was focused on consumer demand for eco-friendly alternatives.
Effective Collaboration: The product development process involves close coordination between marketing, engineering, and design teams.
- Example: The development of a gaming console involves input from hardware engineers, software developers, and marketing experts.
Adaptability: Successful products can adapt to changing market conditions and feedback.
- Example: The Amazon Echo evolved by adding more features based on customer feedback.
2.7. Phases of a Generic Product Development Process
The generic product development process usually follows these phases:
Idea Generation: Brainstorming new ideas or solutions.
Concept Development: Turning ideas into detailed concepts and creating prototypes.
Business Analysis: Assessing the financial feasibility and potential market demand.
Product Design and Development: Designing the product, its features, and finalizing technical aspects.
Market Testing: Testing the product with a small group of consumers to get feedback.
Commercialization: Full launch and distribution of the product.
Post-Launch Evaluation: Analyzing product performance after launch and making adjustments as needed.
2.8. Customer Need Identification
Identifying customer needs is crucial for successful product development. This can be done by:
Market Research: Surveys, focus groups, and interviews to understand consumer desires.
- Example: A smartphone company might survey customers to find out which features they most value, such as camera quality or battery life.
Customer Feedback: Listening to feedback from existing customers about their challenges and needs.
Observation: Analyzing consumer behavior and trends to anticipate future needs.
- Example: Video streaming platforms noticed a trend in cord-cutting and developed a product to meet that need.
2.9. Product Development Practices and Industry-Product Strategies
Each industry has unique strategies for developing products. Common practices include:
Agile Development: Iterative development that focuses on releasing incremental improvements over time.
- Example: Software companies release frequent updates to improve their product based on user feedback.
Design Thinking: A human-centered approach that focuses on understanding customer problems and designing solutions.
- Example: Apple uses design thinking to develop intuitive, user-friendly products like the iPhone.
Differentiation: Creating products that stand out from competitors through unique features or branding.
- Example: Tesla’s electric cars are differentiated by their high performance and environmentally friendly technology.
Market Penetration Strategy: Launching a product in a way that rapidly captures a large share of the market.
- Example: Spotify offers a free version of their service to attract users before they switch to a paid subscription.
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