Product lifecycle management food industry,trading standards organic food,gardening leave rules - PDF 2016

Author: admin, 07.07.2014. Category: Organic Products

Designers need to consider the whole product cycle of potential products, services and systems throughout the design cycle and beyond.
An understanding of the product life cycle allows the designer to design a product with obsolescence in mind.
Activity: Find two products that are in each stage of the product life cycle and write a sentence describing why. Planned: A product becomes outdated as a conscious act either to ensure a continuing market or to ensure that safety factors and new technologies can be incorporated into later versions of the product.
Style (fashion): Fashions and trends change over time, which can result in a product no longer being desirable. Technological: When a new technology supersedes an existing technology, the existing technology quickly falls out of use and is no longer incorporated into new products. Laptop computers are an intensely competitive market, with size and power being key issues. Activity: Identify and describe one product (other than computers, phones, tablets or MP3 players) that have a shortened product cycle. Product Versioning is  offering a range of products based on a core or initial product market segments.
A company can maintain a pioneering strategy and consistent revenue flow by introducing new versions or generations of a product to a market. The transition from a linear to a circular economy in the move towards sustainable societies has major implications for the ideas associated with product life cycle.
Please note: Any IB syllabus statements included on DesTechWiki are NOT under any free license and remain property of the International Baccalaureate Organization (IBO). This content was accessible as of December 29, 2012, and it was downloaded then by Andy Schmitz in an effort to preserve the availability of this book.
PDF copies of this book were generated using Prince, a great tool for making PDFs out of HTML and CSS. For more information on the source of this book, or why it is available for free, please see the project's home page. DonorsChoose.org helps people like you help teachers fund their classroom projects, from art supplies to books to calculators. Over 20,000 new offerings, including convenience foods, health and beauty aids, electronics, automobiles, pharmaceutical products, hotels, restaurants, and so on, enter the marketplace each year.
Once a product is created and introduced in the marketplace, the offering must be managed effectively for the customer to receive value from it. The product life cycle (PLC)The stages (introduction, growth, maturity, decline) that a product may go through over time. The first stage in a producta€™s life cycle is the introduction stageThe first stage of the product life cycle after a product is launched.. The specific promotional strategies a company uses to launch a product vary depending on the type of product and the number of competitors it faces in the market.
Many new convenient snack packages, such as jelly snacks and packages of different sizes, are available in China and the United States. During introduction, an organization must have enough distribution outlets (places where the product is sold or the service is available) to get the product or service to the customers. When you were growing up, you may remember eating Rice Krispies Treats cereal, a very popular product.
Product pricing strategies in the introductory stage can vary depending on the type of product, competing products, the extra value the product provides consumers versus existing offerings, and the costs of developing and producing the product. A company uses a skimming pricing strategyA high initial price that companies set when introducing new products in order to get back money invested., which involves setting a high initial price for a product, to more quickly recoup the investment related to its development and marketing. If a product is accepted by the marketplace, it enters the growth stage of the product life cycle. A company sometimes increases its promotional spending on a product during its growth stage. The number of distribution outlets (stores and dealers) utilized to sell the product can also increase during the growth stage as a company tries to reach as much of the marketplace as possible. After many competitors enter the market and the number of potential new customers declines, the sales of a product typically begin to level off.
Quaker Oats was introduced over one hundred years ago and is still in the maturity stage although the package has been changed.
Given the competitive environment in the maturity stage, many products are promoted heavily to consumers by stronger competitors. Companies are challenged to develop strategies to extend the maturity stage of their products so they remain competitive.
Modifying the target market helps a company attract different customers by seeking new users, going after different market segments, or finding new uses for a product in order to attract additional customers. Many companies enter different geographic markets or international markets as a strategy to get new users. Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the producta€™s maturity stage. Car manufacturers modify their vehicles slightly each year to offer new styles and new safety features. Tropicanaa€™s new (and now abandoned) packaging look didna€™t compare well with the a€?orange and the strawa€? but is still used on the lower-calorie Tropicana. When introducing products to international markets, firms must decide if the product can be standardizedKeeping a product or service the same in all markets. Some companies modify the marketing strategy for one or more marketing variables of their products. As a result of falling market share, Starbucksa€™ former CEO and founder Howard Schultz returned to the company. When sales decrease and continue to drop to lower levels, the product has entered the decline stageThe stage of the life cycle at which sales drop and companies must decide whether to keep, modify, or drop a product. Technical products such as digital cameras, cell phones, and video games that appeal to young people often have limited life cycles. The product life cycle helps a company understand the stages (introduction, growth, maturity, and decline) a product or service may go through once it is launched in the marketplace. Explain what a firm that sells a product with a limited life cycle (such as software) should do in each stage so there is not a lot of inventory left over when a newer version is introduced? Explain why the marketing costs related to a product are typically higher during the introduction stage and why companies must generate awareness of the new product or service and encourage consumers to try it.
What stage of the life cycle is a product in when the company cannot meet the demand for it and competitors begin to enter the market? What different strategies do firms use to extend the life cycles of their products throughout the maturity stage? Explain the difference between harvesting and a divesting when a firm enters the decline stage. When we think about locally-produced foods, a few things may come to mind: the herbs we grow on our windowsills, a local community garden, farms located just outside of city limits, or maybe even food produced within our own state, province or Northern European country.
While this final journey is an important one in the life cycle of the food that we eat, the amount of carbon emissions generated from transporting food to the consumer represents only 11% of the total amount that food ‘generates’ during its life cycle. It is easy for us to understand that trucks heading to market create carbon emissions, which is why it is so easy for us to associate this final journey with food’s carbon footprint.
Basically, this 90% includes everything that goes into tilling, seeding, irrigating, treating (with or without pesticides), feeding (fertilizing plants or feeding livestock), growing, harvesting, and processing food.
This means that while they have an important role to play, local food producers do not completely eliminate this problem. Read MadMad's e-Magazine for tips on seasonal eats, planet friendly recipes and news on our upcoming events. Clearly, PLM is a source of conflict, and over the next few weeks we’re going to dive headlong into the fray, and see if we can make sense of this foggy, nebulous mess known as PLM. The debate has nothing to do with specific PLM offerings from Autodesk, Dassault, Siemens, PTC, or anyone else in particular, but with PLM itself.
PLM is not any one piece of software, but rather a way of connecting various parts of an organization into a single cohesive system. The PLM-skeptic crowd see PLM software systems as antithetical to a truly creative, dynamic working culture. Are you telling me that the Life cycle of the products at your company are currently UN-managed? Even Designers need to plan resources, fill out time sheets and manage their drawings (for example). PLM software is about gathering up all those desperate databases, excel spreadsheets and emails and putting (as much or as little of it as you need too) in one database so you only have to input data once. I think most of PLM is about capitalizing things (mainly processes) we’re doing the same way over and over. Products may have an impact not only on the direct consumer but also on society at large and the environment. Doing this at the design stage can potentially eliminate the effect of a product on the environment when it is no longer in use.


However, as evidenced by the concept of retro styling and the cyclic nature of fashion, products can become desirable again.
If parts are no longer available, the product can no longer work in the way it originally did. See the license for more details, but that basically means you can share this book as long as you credit the author (but see below), don't make money from it, and do make it available to everyone else under the same terms. However, the publisher has asked for the customary Creative Commons attribution to the original publisher, authors, title, and book URI to be removed. Only if this is done will the producta€™s producer achieve its profit objectives and be able to sustain the offering in the marketplace. Figure 7.8 "Life Cycle" illustrates an example of the product life cycle, showing how a product can move through four stages. For example, in 1992, PepsiCo introduced a product called Clear Pepsi, which went from introduction to decline very rapidly.
The introduction stage is the same as commercialization, or the last stage of the new product development process.
However, by law in the United States, a company is only allowed to use the label a€?newa€? on a producta€™s package for six months. Firms that manufacture products such as cereals, snacks, toothpastes, soap, and shampoos often use mass marketing techniques such as television commercials and Internet campaigns and promotional programs such as coupons and sampling to reach consumers (pull strategy; see Chapter 11 "Advertising, Integrated Marketing Communications, and the Changing Media Landscape").
The product was so popular that Kellogga€™s could not keep up with initial demand and placed ads to consumers apologizing for the problem. Organizations want consumers to perceive that a new offering is better or more desirable than existing products. The growth stageThe stage of the life cycle in which sales increase and more competitors enter the market.
However, instead of encouraging consumers to try the product, the promotions often focus on the specific benefits the product offers and its value relative to competitive offerings. Expanding a producta€™s distribution and increasing its production to ensure its availability at different outlets usually results in a producta€™s costs remaining high during the growth stage.
This indicates that a product has entered the maturity stageThe stage of the product life cycle at which sales begin to level off and competitors have saturated the market. The strategies used to promote the products often focus on value and benefits that give the offering a competitive advantage. Many firms do so by modifying their target markets, their offerings, or their marketing strategies. Financial institutions and automobile dealers realized that women have increased buying power and now market to them. A product that might be in the mature stage in one country might be in the introductory stage in another market. The 100 Calorie Packs created by Nabisco provide an example of how a company changed the packaging and size to provide convenience and one-hundred-calorie portions for consumers. For example, many coffee shops and fast-food restaurants such as McDonalda€™s now offer specialty coffee that competes with Starbucks. Schultz hired consultants to determine how to modify the firma€™s offering and extend the maturity stage of their life cycle. In addition to the coffee bars, many McDonalda€™s stores are remodeling their interiors to feature flat screen televisions, recessed lighting, and wireless Internet access.
And when asked – ‘why is locally-produced food ‘better’?’ – a typical, ecological answer is that local food has traveled less distance from the farm to my plate and therefore has a smaller carbon footprint. That means that nearly 90% of local food’s carbon footprint happens before it is put on the truck that brings it to your local food shop. But most of us are unaware of what farming essentially is and what exactly goes into producing our food. Each of these activities can be further subdivided, but even this brief overview helps to illustrate how many interlinked processes are needed to feed the masses.
What does it really offer an organization, and how does that translate (or not) to increased productivity?
It allows designers to more easily take manufacturing issues into consideration, and allows manufacturers to synchronize operations with marketing and distribution.
They see PLM as a way of squeezing every last inch of flexibility out of a system, and forcing everyone in an organization to comply with a particular way of thinking and working. Do design CAD companies Autodesk and SolidWorks have records that show they can be trusted?
There are multiple task which can be automated, but it doesn’t mean that we won’t change the process of doing things and it is always scary to imagine that if the whole process of making a product is fixed and defined from one software used out-of-the-box, where is the improvement? Also, if a service vital to its functioning is no longer available, it can become obsolete.
You may also download a PDF copy of this book (14 MB) or just this chapter (1 MB), suitable for printing or most e-readers, or a .zip file containing this book's HTML files (for use in a web browser offline).
The process involves making many complex decisions, especially if the product is being introduced in global markets. Just as children go through different phases in life (toddler, elementary school, adolescent, young adult, and so on), products and services also age and go through different stages. By contrast, Diet Coke entered the growth market soon after its introduction in the early 1980s and then entered (and remains in) the mature stage of the product life cycle.
An organizationa€™s objectives during the introductory stage often involve educating potential customers about its value and benefits, creating awareness, and getting potential customers to try the product or service. To reach wholesalers and retailers such as Walmart, Target, and grocery stores, firms utilize personal selling (push strategy; see Chapter 11 "Advertising, Integrated Marketing Communications, and the Changing Media Landscape").
For example, IBMa€™s ThinkPad was a big hit when it was first introduced, but the demand for it was so great that IBM wasna€™t able to produce enough of the product.
When demand is higher than supply, the door opens for competitors to enter the market, which is what happened when the microwave was introduced.
Two strategies that are widely used in the introductory stage are penetration pricing and skimming. Generally this market consists of customers who are not as price sensitive or who are early adopters of products.
In other words, although the company must still inform and educate customers, it must counter the competition. The price of the product itself typically remains at about the same level during the growth stage, although some companies reduce their prices slightly to attract additional buyers and meet the competitorsa€™ prices.
The promotions aimed at a companya€™s distributors may also increase during the mature stage. With the growth in the number of online shoppers, more organizations sell their products and services through the Internet. Changing the package or adding variations or features are common ways to extend the mature stage of the life cycle.
Although it is much less expensive to standardize products and promotional strategies, cultural and environmental differences usually require some adaptation.
As a result, Starbucksa€™ managers a decided it was time to change the companya€™s strategy. Subsequently, Starbucks changed the atmosphere of many of its stores back to that of traditional coffee shops, modified its lunch offerings in many stores, and resumed grinding coffee in stores to provide the aroma customers missed.
In the decline stage, changes in consumer preferences, technological advances, and alternatives that satisfy the same need can lead to a decrease in demand for a product. To save money, some companies try to reduce their promotional expenditures on these products and the number of distribution outlets in which they are sold.
Where do these 90% of carbon emissions come from and how can we, as consumers, even begin to understand this process in a way that helps us to understand it and then hopefully change it?
Here is a generic illustration generated by the US’s Environmental Protection Agency (EPA) that shows the environmental impact for any production process.
But how do these changes happen and who determines which solutions create the best results? I see it as a way of Arming designers with all the information they need, then arming the people downstream of design with all the info they need.
Before introducing products in global markets, an organization must evaluate and understand factors in the external environment, including laws and regulations, the economy and stage of economic development, the competitors and substitutes, cultural values, and market needs. The PLC is a beneficial tool that helps marketers manage the stages of a producta€™s acceptance and success in the marketplace, beginning with the producta€™s introduction, its growth in market share, maturity, and possible decline in market share. For example, some products never experience market share growth and are withdrawn from the market.
New computer products and software and video games often have limited life cycles, whereas product categories such as diamonds and durable goods (kitchen appliances) generally have longer life cycles. As an analogy, think about the amount of fuel a plane needs for takeoff relative to the amount it needs while in the air. Getting products and services, particularly multinational brands, accepted in foreign markets can take even longer. Cooperation from a companya€™s supply chain membersa€”its manufacturers, wholesalers, and so fortha€”helps ensure that supply meets demand and that value is added throughout the process.


Most people own a microwave, and prices have dropped significantly since Amana introduced the first microwave at a price of almost $500.
A penetration pricing strategyA strategy in which an organization offers a low initial price on a product so that it captures as much market share as possible. Firms that produce electronic products such as DVRs, plasma televisions, and digital cameras set their prices high in the introductory stage. Unfortunately for the firm, the growth stage attracts competitors who enter the market very quickly.
Emphasizing the advantages of the producta€™s brand name can help a company maintain its sales in the face of competition. Most consumer products are in the mature stage of their life cycle; their buyers are repeat purchasers versus new customers. Entering new markets provides companies an opportunity to extend the product life cycles of their different offerings. Kraft Foods extended the mature stage of different crackers such as Wheat Thins and Triscuits by creating different flavors. Pepsi recently changed the design and packaging of its soft drinks and Tropicana juice products. Product colors and packages as well as product names must often be changed because of cultural differences. Over the years, Starbucks had added lunch offerings and moved away from grinding coffee in the stores to provide faster service for its customers. How many of your fellow students do you think have used a typewriter, adding machine, or slide rule? As previously stated, roughly 90% of carbon emissions produced by food production are created in steps 1, 2, and 3 (step 5 is related to food waste, which is a topic for another day). We will explore these questions in our MadMad Events Series this Spring, but feel free drop us a line or leave your thoughts in the comments to start the conversation now. Other tools such as the Boston Consulting Group matrix and the General Electric approach (see Chapter 2 "Strategic Planning" for discussion) may also be used to manage and make decisions about what to do with products. How a product is promoted, priced, distributed, or modified can also vary throughout its life cycle.
Just as an airplane needs more fuel for takeoff, a new product or service needs more funds for introduction into the marketplace. Consequently, companies introducing products and services abroad generally must have the financial resources to make a long-term (longer than one year) commitment to their success. Sometimes other, more targeted advertising strategies are employed, such as billboards and transit signs (signs on buses, taxis, subways, and so on). As consumers in the United States initially saw and heard about the product, sales increased from forty thousand units to over a million units in only a few years. However, the high price must be consistent with the nature of the product as well as the other marketing strategies being used to promote it. Although different organizations produce personal computers, a highly recognized brand such as IBM strengthens a firma€™s advantage when competitors enter the market. However, they must be careful not to get into a€?price warsa€? with their competitors and destroy all the profit potential of their markets, threatening a firma€™s survival. Although not popular with consumers, many companies downsizeTo decrease the size of the package or the amount of product in the package. However, consumers thought the new juice package looked like a less expensive brand, which made the quality of the product look poorer. For example, in many Asian and European countries, Coca-Colaa€™s diet drinks are called a€?light,a€? not diet.
However, customers missed the coffee shop atmosphere and the aroma of freshly brewed coffee and didna€™t like the smell of all the lunch items.
Computers replaced the typewriter and calculators replaced adding machines and the slide rule. During the growth stage, companies must demonstrate the producta€™s benefits and value to persuade customers to buy it versus competing products.
The madness must stop, and in order for that to happen, we’re going to have to come to terms with a little gremlin called Product Lifecycle Management (PLM). The aim has to be to increase productivity to allow more time for Innovation, but also reduce rework and warranty issues.
Given many possible constraints in international markets, companies might initially introduce a product in limited areas abroad.
For example, when a market is no longer growing but the product is doing well (cash cow in the BCG approach), the company may decide to use the money from the cash cow to invest in other products they have rather than continuing to invest in the product in a no-growth market (see Chapter 2 "Strategic Planning"). Communication (promotion) is needed to generate awareness of the product and persuade consumers to try it, and placement alternatives and supply chains are needed to deliver the product to the customers. For more technical or expensive products such as computers or plasma televisions, many firms utilize personal selling, informational promotions, and in-store demonstrations so consumers can see how the products work.
For example, engaging in more personal selling to customers, running ads targeting specific groups of customers, and placing the product in a limited number of distribution outlets are likely to be strategies firms use in conjunction with a skimming approach.
Youa€™ll notice that both Coca-Cola and Pepsi have similar competitive offerings in the beverage industry, including their own brands of bottled water, juice, and sports drinks.
New offerings that utilize the same successful brand name as a companya€™s already existing offerings, which is what Black & Decker does with some of its products, can give a company a competitive advantage. Intel and Advanced Micro Devices (AMD) have engaged in several price wars with regard to their microprocessors.
Ask your parents about eight-track tapes, which were popular before cassette tapes, which were popular before CDs. PLM I think fits into Pre & Post Design to end of life, but full fills a supporting role throughout the design process. Profits are often low in the introductory stage due to the research and development costs and the marketing costs necessary to launch the product.
New varieties of cereals, fragrances of shampoo, scents of detergents, and snack foods are often introduced at low initial prices.
As additional customers begin to buy the product, manufacturers must ensure that the product remains available to customers or run the risk of them buying competitorsa€™ offerings. Companies typically begin to make a profit during the growth stage because more units are being sold and more revenue is generated. Quaker Oats and Ivory Soap are products in the maturity stagea€”they have been on the market for over one hundred years. Likewise, Samsung added features and lowered the price on its Instinct mobile phone, engaging in a price war with Applea€™s iPhone. Hyundai Motor Company had to improve the quality of its automobiles in order to compete in the U.S.
The firm also changed its communication with customers by utilizing more interactive media such as blogs.
By reducing these costs, the company hopes that the profits from the product will increase until their inventory runs out. If it becomes restrictive at the wrong times for no good reason then its failing as a process or a product. For example, the producers of video game systems such as Nintendoa€™s Wii could not keep up with consumer demand when the product was first launched.
With the weakened economy, many online retailers engaged in price wars during the 2008 holiday season by cutting prices on their products and shipping costs. Another option for the company is divestingCompanies get rid of a product, service, or business. The low initial price of the product is often combined with advertising, coupons, samples, or other special incentives to increase awareness of the product and get consumers to try it. Companies must also examine the external environment in foreign markets since the regulations, competition, and economic conditions vary as well as the cultures.
Many fads and fashions for young people tend to have very short life cycles and go a€?out of stylea€? very quickly. Companies modify the target market, the offering, or the marketing mix in order to extend the mature stage and keep from going into decline. Many retailers learned from their mistakes and ordered less inventory for the 2009 holiday season.
The company might choose to sell the brand to another firm or simply reduce the price drastically in order to get rid of all remaining inventory.
If a product goes into decline, a company must decide whether to keep the product, harvest and reduce the spending on it until all the inventory is sold, or divest and get rid of the product. If a company decides to keep the product, it may lose money or make money if competitors drop out. Many companies decide the best strategy is to modify the product in the maturity stage to avoid entering the decline stage.



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