Product Life Cycle
The Product Life Cycle (PLC) illustrates the future demand for the product.
Its shape is determined by the probability of trial and adoptions of a new product.
Possible Product Life Cycle scenarios
Tip 1: Estimate your product life cycle to determine the right customer outreach strategy throughout the different product phases
Tip 2: The goal for your product is to make it as profitable for as long as possible.
Tip 3: Fads are to be avoided if possible as they don’t provide sustainable success of the product.
Factors impacting Trial and Adoptions (Maximize Demand)
Points of differentiation (POD) and points of parity (POP) compared to competing products.
The greater the relative advantage, the greater the likelihood of adoption, which will lead to growth
The products’ complexity effects the usability and experience of the product.
The compatibility of the product with other products impacts the use and demand of the product.
E.g vinyl vs cassettes vs CD’s vs MP3. Vinyl, cassettes and CD’s were not compatible so users had to buy new devises with improved technology.
Sometimes it is difficult to visually assess the new benefits of the product. The ease of the visibility has a direct impact of the demand of the product.
Physical Risk (health), Financial risk (cost), Social (reputation ) and Psychological Risk (trust, side effects,..)
Is there an ability to try the product or sample before it gets bought?