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Product Lifespan
Most products have a certain lifespan on the market. It can be long or short depending on product or service.Also developments in the society and in technology will have influence on the lifespan.
Product lifespan in four periods
The lifespan can be divided into four periods:
| 3) Cash cow
- The product is now mainstream and a lot of people buy it and you can
"milk the cow" and earn a lot of money |
2) Star
- Now people know of the product and would like to have one – maybe it is a bit expensive but it is cool to process it |
| 4) Fading star
– Too many has tried it or the product is beginning to be obsolite. Hopefully a new star is on it way
|
1) Pioneer
– The product is brand new and few people know of it and it is difficult to sell |
Example
This lifespan counts for most products and services.
- If you open a Sports Bar and Cafe it will be unknown in the beginning and few guests will come (Pioneer)
- If it is well driven people will say: Have you tried the new Sports Bar and Cafe? – I have heard it is good (Star)
- If it continues being well driven many people will know it and enjoy a good time (Cash Cow)
- If nothing changes for 3-5 years people will start finding it dull and go to other places (Fading Star)
Where are the products of your new business in the lifespan?
If it is a fading star from start you should certainly find ways to convert it
into a star.
- Go to next
business issue: Market Description
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Copyright © 2009 Dynamic Business Plan 10-09-2010
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