Product life cycle

PRODUCT LIFE CYCLE :

Product Life Cycle is used to map the life of a product. There are four stages in the life of a product. These four stages are Introduction Stage, Growth Stage, Maturity Stage and Decline Stage. The following graph illustrates the four stages of the Product life cycle:

 

1. Introduction Stage: The introduction stage is the most important stage in the Product Life Cycle. In this stage the product is initially promoted. Maggi’s Introduction Stage dates back to the 1980’s when it had entered the Indian market. The product was launched keeping in mind the working women and children. Maggi was a pioneer in the instant noodles market.

2. Growth Stage: The product starts to grow in the Growth stage. In this stage large amount of money is spent on advertisement. Maggi entered into its Growth Stage in the early half of the 1990’s where a huge amount of money was spent by Nestle to make it a household name. Maggi was accepted as a ready to eat food. There was a drastic increase in sales and profit too began to rise.

3. Maturity Stage: The third stage in the Product Life Cycle is the Maturity Stage. After the completion of the Introduction and Growth Stage a product spends a great deal of time in the Maturity Stage. During the latter half of the 1990’s maggi faced tough competition from Top Ramen. Large promotional offers were made and many new players also entered the market. Maggi currently is in its Maturity Stage.

4. Decline Stage: Decline Stage is the stage in which sales of the product begins to fall. Maggi has not entered its Decline Stage. It continues to introduce new varieties and product lines.

The other two cycles are Brand Life Cycle and Industry Life Cycle :

Maggi as a brand is on an ever high and has still not seen decline as Maggi comes up with innovations and variance and introduces its loyal customers to something new. Thus maturity and stability of the brand is maintained.

Nestle as an Industry is also doing great for years and maggi as a component of its varied array of products,as mentioned above