This is the default PLC graph applicable for generic products but it changes depending on the strategies the companies pull off. So assuming that the company manages to add some features and rejuvinate the product in the decline stage, then it manages to pull the product into a previous PLC , possibly introduction too, depending on how dramatic the marketing spend and product feature innovation is.
This is how innovation changes the product life cycle
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"1. Combine your product or service with another one. Giving the “best of both worlds” to your clients.
2. If your product has become the “industry standard” look for new features or improvements and offer an upgraded version. Consider multiple levels or versions of your product to maximize its reach.
3. Will your product create new markets or change the existing one? Consider the impact of your product before you release it. Then immediately begin working on new innovations for the shifted market. Restart the product life cycle by adding new innovations that enhance your original product.
4. Is your product is ending its life cycle and doesn’t stand a chance for renewal? Even if the technology is out of date in your region, are there other places that could still benefit from your product? Consider repackaging and adjusting the product for a new niche market or new regions.
5. If your product has been proprietary consider opening it up to the open source community. Allow developers to build in new features to your product, or deploy it in their own applications. This can really breathe new life into a product. How this is done really depends on the type of product you have and how you want to generate income.
The basic concept behind renewing the product life cycle is to add new value to your product. If you add enough new value, you will restart the product life cycle." says the author at CEstudios |
You will find another discussion about PLC at
schiing How the Music Industry Commited Suicide which will help you in your PLC comparison of Cars.
How exactly do you create a PLC ?
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Simply plot time scale versus profitability or demand on the other axis, it depends on what criteria you are using to determine status in the lifecycle (i.e. high levels of demand but low profitability or vice-a-versa). Hope this very basic answer is some help, alternatively consider using the Boston Consultancy Group matrix to help you decide where your product sits within your companies portfolio (i.e cash cow, star, dog etc).
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marketing queries??? -
March 15th, 2010
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