How can you align your product innovation strategy with the product life cycle?

Product innovation is the process of creating new or improved solutions that meet customer needs and generate value for your business. However, not every product innovation strategy works for every stage of the product life cycle. The product life cycle is the sequence of phases that a product goes through from its introduction to its decline or withdrawal from the market. In this article, you will learn how to align your product innovation strategy with the product life cycle to maximize your competitive advantage and customer satisfaction.

1 Introduction stage

At the introduction stage, when launching a new product or entering a new market with an existing product, your product innovation strategy should focus on creating awareness, educating potential customers, and establishing a unique value proposition. Additionally, it is important to seek feedback and validation from early adopters and influencers to refine your product features and benefits. Some examples of product innovation strategies at this stage include offering free trials, demos, or samples to showcase your product functionality and value; creating compelling stories, testimonials, or case studies to demonstrate your product impact and differentiation; leveraging social media, blogs, podcasts, or webinars to generate buzz and engagement around your product launch; and partnering with other brands, platforms, or channels to reach new audiences and expand your distribution network.

Add your perspective

Sameer Gupta

Product Management | Technology Transformation | Architecture | Innovation | Fostering innovation, cross-functional leadership, and a customer-centric approach to organisational success
Report contribution
Its a fairly well defined high level actions. However, I believe along with the customer value proposition, there need to be a mention of business objectives, measurable goals, market share and revenue targets. I would also add 'operational readiness' to ensure infrastructure can handle growth without compromising performance.

Like

2 Growth stage

At the growth stage, your product sales and market share increase rapidly. Your product innovation strategy should focus on scaling production, distribution, and marketing efforts, as well as enhancing product quality and performance. It's also important to monitor competitors and customer preferences to identify new opportunities and threats. Examples of product innovation strategies at this stage include adding features or functionalities to increase value and usability, improving design, reliability, or security to reduce customer complaints and churn, developing new versions or variants of the product to cater to different segments or niches, and exploring new pricing, packaging, or bundling options to optimize revenue and profit margins.

Add your perspective

3 Maturity stage

At the maturity stage, your product sales and market share have reached their peak and may begin to level off or decline. To retain existing customers, defend your market position, and find new sources of growth, your product innovation strategy should anticipate and respond to changing customer needs, preferences, and expectations. To do this, you can offer loyalty programs, rewards, or incentives; provide exceptional customer service, support, or education; expand your product portfolio; and innovate your product delivery, distribution, or accessibility. All of these strategies will help you increase customer satisfaction and retention while diversifying your revenue streams and targeting new markets.

Add your perspective

John Mann

Hope Monger | Business Professor | Career Coach | Story Whisperer
(edited)
Report contribution
I worked on product innovation for Tide in the late 1980s. It was old well before I arrived, and lives on decades later. We pushed to develop new generations of these brands with better performance and more targeted appeal to key segments. Good thing we did not think of Tide as a mature brand. Too many times the product cycle is used as an excuse for poor innovation. Doubling down on customer insights, competitive analysis, and mastering new technology can delay "maturity and decline." Decline may be inevitable, but it can be delayed substantially. We took pride in continuing to build from where others left off, and leave it to the next group to build even further. Extend the product cycle. Maturity should be a time to fight not surrender.

Like

4 Decline stage

The decline stage is when your product sales and market share decline significantly due to market saturation, technological obsolescence, or competitive pressure. Your product innovation strategy should focus on minimizing costs, maximizing cash flow, and evaluating product viability. Additionally, you should decide whether to exit, harvest, or revitalize the product. To do this, you can reduce your product price, promotion, or production to lower expenses and increase cash flow. You could also discontinue the product or withdraw from unprofitable markets to focus on core competencies and products. Repositioning, rebranding, or relaunching the product may also appeal to new customers or markets. Lastly, reinventing, reengineering, or redesigning the product can incorporate new technologies, trends, or features.

Add your perspective

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

Add your perspective

Gijsbertus J.J. van Wulfen

Innovation keynote speaker, Number One Thought Leader Design Thinking 2024, LinkedIn Top Voice helping you and your organisation, to become amazing innovators with keynotes, workshops, and a proven innovation method.
Report contribution
APPLY THE 3 HORIZONS MODEL for innovation As innovation facilitator of 100+ projects, I recommend you to use the 3 HORIZONS of McKinsey to guide you. In Horizon 1, focus on optimizing your current products and processes for incremental improvements, cost reduction, and efficiency. In Horizon 2, allocate resources towards developing new products that build on your existing strengths but address emerging customer needs. In Horizon 3, explore disruptive and breakthrough innovations that may have non-traditional markets and business models. Balance your investments across these three horizons to ensure a steady flow of incremental improvements, growth opportunities, and breakthrough innovations.

Like

How can you align your product innovation strategy with the product life cycle?

1

2

3

4

5

1 Introduction stage

2 Growth stage

3 Maturity stage

4 Decline stage

5 Here’s what else to consider

Product Innovation

Rate this article

Thanks for your feedback

More articles on Product Innovation

More relevant reading

How can you align your product innovation strategy with the product life cycle?

1

2

3

4

5

1 Introduction stage

2 Growth stage

3 Maturity stage

4 Decline stage

5 Here’s what else to consider

Product Innovation

Rate this article

Thanks for your feedback

Explore Other Skills