Vernon’s Product Life Cycle
This article contains application of Vernon’s Product Life Cycle on the case study of Shanghai Vision Technology Co., Ltd, a medium sized manufacturer of 3D printers and other innovative products based in Shanghai, China.
Products of Shanghai Vision Technology to be sold in new markets follow a specific life cycle pattern. This pattern can be effectively explained using Vernon’s product life cycle which comprises four stages: introduction, growth, maturity and decline.
Introduction stage for Shanghai Vision Technology 3D printers and other products commences when the product is offered in new market for the first time. During this stage Shanghai Vision Technology products are purchased mainly by ‘innovator’ and ‘early adopter’ consumer categories and the role of effective integrated marketing strategy is paramount.
Growth stage for Shanghai Vision Technology products is associated with rapid increase of the sales volume due to the impact of marketing initiatives and word-of mouth marketing. It is important for Shanghai Vision Technology to ensure the supply of its products in the market during this stage.
Maturity stage is reached when the majority of Shanghai Vision Technology target customer segment already posses 3D printers and other products offered by the company and its competitors. Maturity stage is associated with market saturation.
Decline stage is inevitable for Shanghai Vision Technology products, as well as for products of any other company regardless of the industry and size of the market. Determining the timeframe of this stage in an appropriate manner and introducing new products to the market during the later stages of decline plays an important role for Shanghai Vision Technology in terms of retaining its share in new markets. Although Vernon’s product life cycle consists of four main stages as discussed above, new product development can be specified as an important stage that precedes introduction stage.
Moreover, it is important to note that rapid technological developments coupled with intensive competition for Shanghai Vision Technology have dramatically reduced the total duration of product life cycle, and accordingly nowadays the importance of new product development is greater then ever before.
Importantly, in some cases the life cycle of Shanghai Vision Technology 3D printers and other products can also be re-started through adding certain features and capabilities without the necessity of producing totally innovative products.