IB Design and Technology Product Innovation Designers and the product Cycle

What is the Product Cycle? A new product progresses through a sequence of stages, from introduction to growth, maturity and decline. This sequence is known as the product cycle. Products tend to go through 5 stages: 1.New product development 2.Market introduction 3.Growth 4.Maturity 5.Decline or stability

What is the Product Cycle? Products tend to go through five stages: New product development stage  very expensive  no sales revenue  losses Market introduction stage  cost high  sales volume low  no/little competition - competitive manufacturers watch for acceptance/segment growth  losses  demand has to be created  customers have to be prompted to try the product

Growth stage  costs reduced due to economies of scale  sales volume increases significantly  profitability  public awareness  competition begins to increase with a few new players in establishing market  prices to maximize market share Mature stage  costs are very low as you are well established in market & no need for publicity.  sales volume peaks  increase in competitive offerings  prices tend to drop due to the proliferation of competing products  brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered  very profitable

Decline or Stability stage  costs become counter-optimal  sales volume decline or stabilize  prices, profitability diminish  profit becomes more a challenge of production/distribution efficiency than increased sales  consumer demand for spare parts, maintenance and or product servicing Video clip – Dyson 2.mpg

The roles in the product cycle The product cycle encompasses the work of: Distributors Retailers Accountants Production Engineers Designers All of whom have an influence over the cycle.

The role of the Designer Designing is part of the product cycle (New product development stage). It is essential that the designer generate and develop innovative ideas that can be developed into a final product. Video Clip– What if?

Designer role in the Product Cycle The designer has an important role in the product cycle; as a need is generated, a product is designed, made and sold, eventually becoming obsolete. Although the designer is an integral part of the process she or he is not necessarily in control (unlike in the design process, where the designer is in control). The use of CAD/CAM, where a prototype is produced by the designer from his or her personal computer, blurs this distinction.

Stages of the Product Cycle The IB Guide simplifies the product cycle and breaks the stages down to three: 1.Early – Many changes to the product take place until it develops. 2.Mature – Where it is diffused into the market, gains acceptance and sells well. 3.Late - The product begins to decline in need and therefore sale.

Early, Mature and Late stages of the Product Cycle. Identify the stages of the product cycle from the following. Video clip – Carbon fibre bicycles. Video clip – Sinclair Zike.

Early, Mature and Late stages of the Product Cycle. Video clip – Carbon fibre bicycles. Video clip – Zinclair Zike. Early - Many changes to the product take place until it develops Mature – sells well although the design does not change much Late – it has been overtaken by successive generations of products. Mature Late

Aims of the Design Cycle. The design cycle/ the design process is aimed at producing a suitable solution to a problem. THEN.....

Aims of the Product Cycle. The product cycle puts the design solution into commercial practice.

Discuss why for many products the product cycle has shortened. Laptop computers are an intensely competitive market with size and power being key issues. Ball point pens – The needs of the ball point pen do not change so the product cycle is longer Task: Discuss why for many products the product cycle has shortened.