Each and every product irrespective
of their category has a limited lifecycle in terms of the product sales and
profits. Product sales pass through distinct stages facing different challenges
and opportunities. Relatively the profits tend to raise and fall at different
stages. Products need to require different strategies to acquire to the next
stage in the life cycle.
The
four different stages in the product life cycle are :
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Introduction:
This
is the initial stage of the development of the product when the product is
introduced in the market and where there is no progress in the sales figures
and profits. This is due to the production cost and other expenses with respect
to the launch of the sales in the market.
Lays
was launched in the Indian market in the year 1995. It earned the brand value
among the consumers due to its unique taste and providing a wide variety of
flavours.
Growth:
This
is the stage the product gradually shows an increase in the sales figures
because of the acceptance in the market by its consumers.
Lay’s started to show
profit due to the introduction of the new flavours, advertising and packaging
of the product.
Maturity:
The phase where the profits generated by the
product rise up to the maximum level and maintains at that level for a quite
longer period of time and slight
reduction in the sales figures due to
the introduction of various competitors in the market. At the maturity stage
the product must have acquired maximum market share.
Lay’s has now attained the
maturity stage by capturing the maximum amount of market share.
Decline:
This is the final phase where the
sales volume generated by the product decrease at a very higher level and the
profits begin to erode. Lay’s has not attained this phase because the consumers
still tend to buy this product irrespective of the competition.
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