The vision the product life cycle has evolved over three decades, to propose in the eighties that the cycle consisted of four phases, the first decade of 2000 was established that there are five stages also recognized that the development or gestation of a product is a phase. However, based on the fact that the phase two, which is represented by a single point on the graph, "the" product launch "includes all actions necessary to ensure the success of the product on the market, and that define the type of product life cycle, I present my theory of the strategic phases of the life cycle of a product with 14 stages.
In classical theory the time duration of each phase generating the product into the market to take one of three life cycle types supported:
1) Traditional or classic.
2) Temporary or seasonal
3) Increasing
In 2005 Alejandro Lerma Kirchner in his book "Guide to a product development approach" provides that in addition to the three types of life cycle already mentioned, there are five, which generates eight types of life cycles: 4) normal or fast growth with slow decrease
5) Maturity extensive
6) Growth in stages
7) Revitalization
8) fluctuating behavior
So how is that a product generates a type of life cycle? If we stay with the life cycle of five phases, we would lack insights into the great variation between the eight cycles of life, the gap is solved when changing the focus of vision, ie recognized the existence of points or strategic inflection points, these points represent like product launch, the application of a series of strategies based on the information system marketing-SIM-that alter the trend of the slope of the curve in each phase, ie modify the product life cycle and can change from one to another of the eight cycles raised by Alexander Lerman in a planned and not reactive , for which additional product launch set the location of four additional strategic or inflection.
Five turning points in the life cycle of a product are:
1) Product Launch.
2) Renewal
3) Adequacy
4) Repositioning
5) Farewell
Each turning point is located at the time the slope changes its slope in the negative, which will generate the following changes in the life cycle:
The growth phase due to the turning point "renewal" is divided into Growth sustained renewal and adolescence.
The mature phase due to the tipping point "adequacy" is divided into maturity I and II
maturity phase of decline due to the tipping point "repositioning" is divided into gentle decline and decline
critical withdrawal phase market due to the turning point "bounce" is divided into two: retirement and death of the product market.
The application of the five turning points in the product life cycle generates a life cycle of 14 phases:
2 .- Launch product. Sustained growth
3 .- 4 .- 5 .- Young Renewal
Maturity I
6 .- 7 .- 8 .- Adaptation
Maturity II soft
9 .- Decline Repositioning
10 .- 11 .- Critical Decline
Recall 12 .- 13 .- Farewell
14 .- Death of product
The new four turning points, plus define the type of life cycle, generating a cyclical process of evolution similar to the virtuous spiral of Keynes, finally explained each of the 14 strategic phases of the life cycle of a product.
1 .- Generation of product: is a phase in which the company invests a lot in identifying the features that allow you to be competitive in the market, no sales only net losses. 2 .-
Product Launch: high selling price, sales are low due to poor product knowledge remain a net loss due to costs of sales.
3 .- Growth sustained: Reduction costs, economies of scale, increase sales, profit arises, people identify and recognize the product arise early imperfect substitutes.
4 .- Renewal: (the timely implementation generates a growing life cycle stages) we are currently implementing enhancements and connectivity that the client has identified for imperfect substitutes do not become perfect.
5 .- Adolescence: "positive slope zero arise perfect substitutes, there is mimicry of the competition as the product starts decreased sales as substitutes exploit areas of opportunity and sometimes the original product exceeded.
6 .- Maturity I: "zero slope to zero" Low cost, maximum sales, sales price down due to the proliferation of competition camouflaged, is a more profitable distribution channels.
7 .- Adaptation: (The timely implementation and extends back stage 6 produces a long maturity cycle) presents new product applications in order to differentiate camouflaged perfect substitutes and widen the gap with substitutes imperfect, we must avoid changing the pricing strategy of monetary and migrate to the strategy of benefit.
8 .- Maturity II there is a slight change in the reasons psychographic Shopping and conditions of use, blend achieves the perfect replacement to 100% together with a large difference in the monetary value of the product, the ratio remains zero slope. 9 .- Decline
soft: "zero to negative slope of the margin," sales and lower selling prices, margins are reduced profitability analysis starts from being a product to a product cow dog.
Repositioning 10 .- (leading to a new stage of maturation and renewal, generates a revitalization cycle) segment is migrated to a less saturated market, defining new product features that capture the intent purchase of new segment, beginning in him a new life cycle starting in phase two.
11 .- Decline critical: sales slope is negative at worst, you must decide if it remains in the product market as a dog, and lengthens the phase of decline or withdrawn from the market, costs sale exceed the margin, missing the price strategy and profits.
12 .- Recall: The decision not to continue in the competition in the sand, usually the decision is based on the profitability of the product apart from the consumer.
13 .- Farewell: turning point whose purpose is to avoid possible resentment and / or anger from consumer to withdraw from the market that met their needs, it is so important that consumers do not completely brand can migrate mother why he must submit to the perfect substitute will be offered .
14 .- Death of product: is the total market output, or involve the dismantling of the production line of product.
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