Lifecycle Management


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Slides Adrienne Tan recently used in his discussion w/ mentees of The Product Mentor.

The Product Mentor is a program designed to pair Product Mentors and Mentees from around the World, across all industries, from start-up to enterprise, guided by the fundamental goals…Better Decisions. Better Products. Better Product People.

Throughout the program, each mentor leads a conversation in an area of their expertise that is live streamed and available to both mentee and the broader product community.

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Lifecycle Management

  1. 1. Lifecycle Management Explained
  3. 3. Every Product Has A Lifecycle Time in Market End of Life Launch
  4. 4. The only time that a product can generate benefits for customer and the business is during it’s time in market. Time in Market Yet in terms of business focus the Lifecycle Management is often undervalued.
  5. 5. Instead businesses over focus on the Development and Launch. Launch
  6. 6. Resources Are Imbalanced VS Development Team Product Lifecycle Manager
  7. 7. Business Focus Is Different VS Development Team Product Lifecycle Manager
  8. 8. Business Contributions Are Different VS Development Team Product Lifecycle Manager
  9. 9. Focus Of Lifecycle Management Maximise return on investment over the life of the product. Know when to retire the product from the market.
  11. 11. Launch Decline Maturity Growth Introduction Development A Product Lifecycle Has Stages End of Life
  12. 12. So… What Happens At Each Stage? 12
  13. 13. Characteristics Of Introduction Stage Slow sales - Grows over a long period of time. Low or no profitability – High cost of production & promotion to grow product awareness. Pricing strategy important to meet product and business strategy.
  14. 14. EXAMPLE Introductory Stage For Micro Payment Companies 14
  15. 15. Characteristics Of Growth Stage Rapid growth in sales – The target market evolves as the take up of product expands beyond pioneers and early adopters. Gross Margin may increase as production cost per unit decreases. New competitors entering the market.
  16. 16. EXAMPLE The Iconic In Growth Mode ‘‘I am the most aggressive guy on the internet planet. I will die to win and I expect the same from you!’’ Oliver Samwer – Iconic Co-founder 16
  17. 17. Characteristics Of Maturity Stage Product is commoditised or monopolised. Growth in sales decreases. Some competitors exit the market. Substitutes appear. Price of unit may be slashed to improve market attractiveness. Marketing spend typically increases. May undertake more product improvement initiatives to arrest decline.
  18. 18. EXAMPLE Seek Is A Mature Product In Changing Market 18
  19. 19. Characteristics Of Decline Stage Sales drop significantly &/or rapidly. Profits also decrease. Price slashed further resulting in further decline in profitability. There are replacement products in the market that solve the customer’s problems better. No marketing activity or development efforts can arrest the decline.
  20. 20. EXAMPLE Australia Post Letters 20
  22. 22. Launch Decline Maturity Growth Introduction Development Moving From Stage To Stage Can Be Hard End of Life
  23. 23. Moving From Stage To Stage Can Be Hard Development Some Products never make it to Launch. End of Life
  24. 24. Some never get accepted by the market and fail early. Introduction Moving From Stage to Stage Can Be Hard Launch End of Life
  25. 25. Launch Growth Others start to grow but are unable to become profitable. Introduction Moving From Stage to Stage Can Be Hard End of Life
  26. 26. So… What Approaches Can We Apply At Each Stage? 26
  27. 27. Market Approach For Introduction Educate Teach and communicate about the new product to early adopters. Early adopters are described as “curious, adventurous consumers who buy first, talk fast and spread the word to others about the pros and/or cons of what they have purchased.” 27
  28. 28. Marketing Tactics For Introduction Blogging Trade Shows, Video, Various Social Media Channels, Word of Mouth 28
  29. 29. Market Approach For Growth Compete The product should appeal to a broader group of the target market who may have some understanding of your product. Competition increases and its important to distinguish the value of your product from the pack. Acquisition marketing such as email campaigns, Brand marketing such as TVCs, Channel partnerships 29
  30. 30. Marketing Tactics For Growth Acquisition marketing such as email campaigns, Brand marketing such as TVCs, Channel partnerships 30
  31. 31. Market Approach For Maturity Specialise The product should be altered to serve different purposes for niche markets. The business should consider expansion into new geographic markets. 31
  32. 32. Marketing Tactics For Maturity Targeted marketing campaigns in niche locations, publications with tailored content. 32
  33. 33. Market Approach For Decline Harvest The existing customers should be managed to exit. 33
  34. 34. Marketing Tactics For Decline Consider loyalty programs to maintain existing customers. 34
  35. 35. REMEMBER Products must solve the target market’s problems better than the competition! 35
  36. 36. Questions? 36
  37. 37. Connect with Brainmates Brainmates Group @Brainmates #prodmgmt + 61 2 9923 8147 37