Product Life Cycle

Tuesday, August 16, 2011 ·
Product planning and marketing activities can not be separated. Each product, usually have a limited life, which means that at any given moment a product is less desirable on the market anymore, replaced with a better product. Product decisions is the principle for the organization's strategy and memmiliki a broad impact on the entire operation functions. Life of products is divided into four phases, namely introduction, growth, maturity, and decline.

Product life cycle may be a few days old, weeks, months, years or decades. The task of designing an operations manager system that helps introduce new products successfully. After that operations managers should be prepared to develop strategies for new products and existing products. Periodic testing of the product is very necessary to be done, because changing the strategy in line with changes in the product across its life cycle. Successful product strategy requires determining the best strategy for each product based on its position on the life cycle.

Stages of product life cycle is described as follows:


Description: 
a. Introductory phase (introduction): 
Launching the product at this stage aims to attract consumers by maintaining the quality coupled with intensive marketing. Products are tailored to the market, the condition is possible expenditures for (1) research, (2) product development, (3) modifications and process improvements, and (4) supplier development. Operations managers are still looking for the best manufacturing techniques. At this stage, profits are still negative, the longer it toward a positive direction. The higher the percentage of sales from products introduced during the last five years, then the company is likely to be a leader 

b. Growth stage (growth): 
At this stage of product design has stabilized, and needed an effective forecasting capacity needs. Possible need for additional capacity or capacity that has been adauntuk accommodate increased product demand. Growth stage is characterized by increasing the number of sales byprofits are increasing. 

c. Maturity: 
Maturity stage is marked by the addition of the number of requests in line with increasing profits. At this stage there are already competitors. Producer should be more efficient in terms of cost, so the cost per unit low. Business done is product differentiation. 

d. Decline: 
At this stage there are no more additional requests, even tends to decrease and switch to another product that has better functionality, both in terms of appearance, or a more attractive price. Gains obtained waned. If the product at this stage do not have uniqueness for the reputation of the company or its product line, or can be sold at high prices, then produksii must be stopped. 
Effective operations manager choosing a product that looks most promising. This is consistent with the Pareto principle, which focus on a few but important issues, and not on a lot of problems but it is a minor problem. Analysis of products based on the value (product-by-value-analysis) to sort in descending order based on the contribution of product value for money against the company and also the contribution of value for money on an annual basis. Report a product based on the value of making management can evaluate possible strategies for each product.

If the product is said to no longer be developed, it can be said the product has been dead. Operations managers should be good at choosing the type of products, define the product, and design the products constantly, so it is always able to find and develop new products.

One technique is to generate new products of brainstorming. In this technique, different groups of people share ideas on a particular topic. The goal is to generate open discussion that generates creative ideas about products and product improvements are possible. Here is something to be gained if the management of brainstorming: 
1. Understanding the customer 
Customer is a fundamental problem in the development of new products. Many products that appear on the market that idea came from customers, and not from the manufacturer. Bbeerapa products tend to be developed by individuals, organizations or companies that are sensitive to market trends and have the opportunity to meet outside the regular market. 

2. Economic Changes 
Economic changes led to increased levels penjang term prosperity, but the economic cycle and prices change in the short term. In mebaik economic conditions, many customers meet the needs for long-term investment, while the economic conditions worsen, many customers reduce their consumption levels, so the impact on the amount of demand for certain products will decline. 

3. Sociological and demographic changes 
These changes arise due to several things, including the trend to have smaller families, thus changing the preferences on the size of houses, apartments, and cars. 

4. Changes in technology 
Technological change makes everything else possible to be done, for example, transactions with foreign parties through e-commerce, the use of digital machines to produce. 

5. Political changes 
The condition of a State may perpengaruh the emergence of new regulations. This rule can usually produce a new trade agreement, the new tariff, and also contracts with government requirements. 

6. Other changes 
Other changes may arise through the custom market, strandar professionals, suppliers, and distributors. Factors mentioned above must be borne entirely by the operations manager, so the company can anticipate changes in product opportunities, existing products, product volume and product mix.
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