Before starting an analysis of the product, you should know more about it, such as its characteristics, techniques, its use in its environment and the usefulness or use that potential customers will give it when consuming it.
As many of us know, a product is any object, which can be tangible or intangible that meets one or several needs of potential customers. When an organization or company launches a product it must have a justification, which is that it will meet a customer need.
When we carry out an analysis, we really know the environment of the product to be launched. The previous analysis will allow us to understand the objectives at a social technological level among other areas. This procedure is known as object reading since it helps us to know everything artificial that surrounds the new product. The foregoing becomes a very useful tool to solve certain problems in the launch of the product. (herrada, 2011)
Stages of product analysis
The analysis of a product is a set of analyzes, each analysis raises certain questions that help us in the orientation of the analysis.
These analyzes are mentioned below:
1. Morphological analysis
In this analysis, what is done is to observe the depth of the product externally, in most cases this study is made based on geometric terms such as its shape, volume, size, among others. Sometimes an image is displayed in the analysis to have a relationship pattern.
2. Functional analysis
In this analysis, a list will have to be made of all the functions of the product, in this analysis it will be verified if the product actually fulfills the functions that are in its design.
3. Structural analysis
In this analysis, the elements that the product has, and the relationship between them, are mentioned in the form of a list. As an option, if the product has many elements, it can be disassembled.
4. Performance analysis
This analysis describes step by step how the product works, as well as how its components work.
5. Technological analysis
In this analysis, things must be done with more support, which is why experts in the subject are required, since a description of the materials used in the elaboration of each component of the product will have to be made. As well, we have to mention the manufacturing process, with the technology that was used to obtain the final product in question.
6. Economic analysis
In this analysis we will carry out a study for the sale price that our product will have, as well as our distribution point and in turn see if the price given to the product will coincide with the operation of the product.
7. Comparative analysis
In this analysis we will analyze what advantages it offers compared to others established in the market that fulfill the same function. A list of the products will be made in comparison in their functions.
8. Rational analysis
In this analysis, the objective of the product is related to its environment, in all its characteristics, from the simplest to the most complex that it may contain.
9. Analysis of emergence and historical evolution.
This analysis must be done with sufficient references as it will be a market research. Here we will establish the motivations of the labor markets, for which the emergence of the product occurred, in general this will respond to the market segment that the product will target. Below is an image where the previous analyzes are related each with a question.
Some experts have established some phases of this process, but from my personal point of view those of Philip Kotler are the appropriate ones. (Kotler, 2007) The phases that it establishes are the following:
- Product development
It will start with an idea that produces an innovation which will lead to its creation and development. This stage is characterized by few sales and the cost is high due to the creation of it.
2. Launch or introduction
In this phase, a low sales launch will be presented, neither will almost profits be recorded since sales will go to the cost of the product launch.
3. Growth
This stage will be achieved if said launched product reaches the planned acceptance, at this stage the benefit for the company will begin to be seen.
4. Maturity
In this stage, the product will experience a non-exponential growth in sales due to the fact that it will enter a period of acceptance by customers, once this period has passed the company's profits will stabilize and create properties in the product that make it defend itself from the competitive products.
5. Decline
This stage is the one that many companies do not want their products to arrive because the sales of the product fall precipitously, sometimes they are nil, which causes few benefits both for the client and for the company. It is worth mentioning that in some companies the products that generate more losses than profits must fall at this point and later leave the company.
(Kotler, 2007)
Illustration 5 Product life cycle according to Philip Kotler (See PDF)
All products have to go through this life cycle, in some cases not in all its stages, many factors depend on this that can be detected from the beginning. Many famous products have reached maturity and remain in that stage for many years due to the good work of the marketing area in their promotion techniques, even when that product tries to fall, repositioning techniques can be applied in the market.
This life cycle gives us the tools to analyze how our product is, we can apply it to see what type of life cycle our product will be, if it will have a short or long life cycle.
We can also detect whether standard wax will be affected by fashions or trends that are immersed in the area where said product will enter.
The life cycle proposed by Philip kotler is not the only one nowadays there are cycles that remove some parts of it or put more according to the author's point of view, then we will mention one so as not to marry a single author to have an overview broader on this topic.
This life cycle is proposed in manufacturing companies. (Salazar, 2013)
The CPV in 6 stages.
1. Decision and definition
At this stage the decision is made to create the product and its specifications are established for its manufacture.
2. Design and development
In this stage, the activities to be carried out for the conception of the new product according to its characteristics and specifications are established. The activities to bring it to market will also be established.
3. Manufacturing
At this stage, activities are carried out to obtain the product in question, always complying with quality standards, price conditions and time.
4. Distribution and marketing.
At this stage, although a great value is not added to the product, it is extremely important because its use will be effective here.
At this stage we must include what is distribution, transportation and marketing.
5. Use and maintenance
At this stage is when the product comes to perform the function for which it was designed, in the same way, if said product presents certain types of failures, it must be given adequate maintenance.
6. End of life
At this stage, the decision is reached that the product is no longer used to carry out the activity for which it was created, in addition, when said product is eliminated, economic, social and environmental consequences may occur depending on the type of product and the type of purpose.
Here is an example where certain points in this life cycle apply to product x.
(Rodríguez, 2010)
Illustration 6 Stages of the life cycle of a product X (See PDF)
Important aspects of the life cycle
Speaking more about the life cycle, it has three aspects that will be very marked for the duration of said life cycle. Next, we are going to mention them to keep them present in any product.
1. Style
We can define it as the basic and distinctive mode of expression of a product.
Example of styles in a common product such as clothing, we can mention that there are classic, modern, status styles among others, we can say that many styles can survive for generations.
2. Fashion
Fashion is known as a style that is accepted within a group, society or classes and, when accepted, becomes popular. To cite an example, we can cite touch cell phones that have been on the market since they emerged.
3. Trend
The trends are also known as entry-by-exit fashions as they enter a certain market with great force, but over time they lose their novelty and leave the market.
That said, their followers are limited and in many cases they are select, they are enjoyed while they last since they do not satisfy compelling needs.
A clear example of this type of product are the products that were created to satisfy secondary or terse needs such as bracelet, watches, novel books, among other products.
Life cycle cost
Product life cycle cost relates to all the stages a product goes through from when it was planned to be made until it was sold. Next, we will show the main life cycle costs.
- Definition cost Design and development cost Manufacturing cost Distribution and marketing cost Utilization and maintenance cost End-of-life cost
The above-mentioned costs are those incurred by the product in the six-stage life cycle.
Returning to this life cycle, he recommends that greater emphasis should be placed on the definition stage in teaching if you want to achieve savings in the product by improving its costs. Next, a graph will be shown to specify the cost relationship and the investment made.
(Salazar, 2013)
The uses of the life cycle in the field of marketing.
For the knowledgeable and specialized people in marketing they have to know the life cycle broadly and use it as a tool to describe the products in relation to the market.
Many marketers also want to use it to forecast results, project sales taking into account the stage of the product, as well as to detect external and internal factors that can lengthen or shorten the life of the product.
In the same way, marketers must take into account that the most relevant thing is not to develop a marketing strategy, but to be able to identify the phase that the product is in and then start planning the strategies to develop to extend the life of the product.
Life cycle strategy
Strategies for the introduction phase
At this stage is the moment where the product has just appeared on the market for the first time. The product may initially go through a slow phase accompanied by a step-by-step growth. Due to the slow phase the result will initially be negative or low due to the low level of sales and the high cost in the production, promotion and marketing of the product. In the distribution of the product we have to try to attract distributors to be part of their inventories. A good promotion plan has to be planned to inform the market that the product we launch is already available.
We must be very careful because when the market is not prepared for the market price, the competition will see an opportunity here for which it will launch products on the market with characteristics similar to ours, but at a lower price, with which the competition will gain presence. in the market.
Strategies for the growth phase
This phase begins when the market accepts our product in question, this phase is characterized by exponential growth compared to the previous stage of the life cycle.
Once the market decided to buy this product, it will continue to try it and will induce another part of the market segment to buy it either by recommendation or by some fashion or trend.
As mentioned in the previous stage, we must be alert to competitors, in this phase that the product has reached growth in the veins, the competition will come to the market to seek economic benefits at the expense of our product. What the competition can do is launch a product that has more characteristics than ours, as a result of this, sales may decrease.
In this phase, as sales increase at the distribution points, the demand for the product increases, which is why a plan must be established to meet the demands in a timely manner. The product in general will remain in its price, but we must not forget the advertising expenses so that the product is constant in the market.
The main objective of this phase is to continue motivating the market so that it consumes our market. So that through this motivation the company continues to generate profits, reflected in profits.
Many companies are inclined to carry out strategies aimed at rapid growth, such as quality strategies, product innovation strategies, among other strategies. However, through advertising we have to continue to persuade the client by letting them understand that our product has x benefits, so that through this we can attract new buyers which over time will make us gain a dominant position in that market.
Strategies for the maturity phase
After looking at the sales growth, what will happen to the product after this point is because the product will enter the maturity stage. This stage is the longest, with great challenges for the marketers in charge of the marketing area in the organization. The market in this phase will be characterized by being full of a large number of competitors, who like us offer a large number of products with characteristics similar to ours.
But the aforementioned has a name called super capacity, which has the following aspects:
- Lower prices Increase advertising Sales promotion Increase the budget to improve the production process of the item, improving aspects such as quality among others.
By applying this strategy, sales will decrease a little, removing small competitors that cannot comply with these aspects and leaving only those of the same aspect who managed to adapt to the needs of the new market, an example is the famous Coca Cola company.
To further emphasize this interesting point, we will cite some strategies to achieve this stage of maturity.
The strategies are as follows:
- Market modification
This strategy will seek to increase sales, looking for new uses for the product in order to enter new market segments. As an example of this strategy we can mention volaris, which had the idea of opening a segment of low-cost flights, competing not with other airlines but with buses for the low costs of the flight. (Interamericana, 2010)
- Product modification
In this strategy, what is done to the product will be to increase new characteristics, attributes, better quality in general, an added value to attract new customers from other segments.
Changes can range from its design to the life of said product. An example of these strategies is the company called Kleenex, which offers more advantages in terms of technology. (Interamericana, 2010)
These tissues, in addition to being used especially for colds, have extra characteristics such as the smell of menthol and the use of emollients, which is a substance that helps hydrate the skin.
- Modifying the Marketing Mix
In this strategy, what will be done is to lower production costs, modifying the distribution channel, creating promotions or giving the product a bonus. All of the above is plowed with the aim of increasing sales.
(INEA, sf)
Strategies for the decline phase.
In the world of products for the most part, almost all tend to fall sooner or later, but what distinguishes one from the others is how long this decline lasts. This phase can occur due to many aspects that are immersed in the environment of the product.
We must remember that this phase is characterized by zero sales, which causes many companies to close, the strongest can overcome by closing that market segment.
The budget for this stage, as well as sales, is zero, this causes the product to be weak since it is too expensive for companies to have these products. This type of product only reflects negative things towards the company that still decides to sell it, even if it has zero sales.
The company can decide between the following options:
- Keep the brand
This is done so that over time the competition in this product moves away and later the company relaunches it.
- Squeeze the product
This implies minimizing costs to obtain a minimum profit in this last phase.
- Abandon the product
At this stage the market will be abandoned, one of the options may be to sell that brand to obtain a small profit.
(business, 2015)
conclusion
When a company decided to launch a product on the market, it must take in many aspects such as social, economic, cultural, among others in general, everything that surrounds a product, in general its internal and external environment.
But nevertheless, for said product to be launched to be successful, we must take into account its life cycle, because it must be in a total analysis from the moment the idea arises until the final consumer buys it.
Within the aforementioned, emphasis should be placed on detecting what stage our product is in because taking this as a reference we will act to introduce the strategies that the product might need.
Thanks
To the Technological Institute of Orizaba for giving me the opportunity to train professionally and to Professor Fernando Aguirre y Hernández for all the knowledge he has shared with us in his subject Fundamentals of Engineering.
Bibliography
- comons, c. (2011). Give your opinion.com. Obtained from http://www.datuopinion.com/desarrollode-un-nuevo-productoherrada, l. (January 30, 2011). PENSÙL. Retrieved from: http://tccaalimentospen.blogspot.mx/2011/01/pensul.htmlINEA. (sf). My business. Obtained from: http://nuevoleon.inea.gob.mx/MEVyT/Disco5/cursos/mi_negocio/html/body_public idad_promociones.htmlInteramericana, U. (2010). Product analysis. Puebla, Puebla, Mexico Kotler, PA (2007). Marketing. Madrid: España.negocios, M. y. (2015, September 7). Furniture and businesses. Obtained from http://inmuebles-negocios.com/remate-de-casas-en-portales-de-anuncio/Rodríguez, Á. P. (AUGUST 2010). SCIELO. Obtained from: http://scielo.sld.cu/scielo.php?pid=s1815-59442010000200008&script=sci_arttextSalazar, AT (2013). Life cycle of a product (CVP). Mexico, Mexico.Stanton, WJ(2007). Lifecycle.
