Product ( Industry ) Life Cycle

 

 Basically, there are four stages in a product’s life cycle:
 1) Introduction- the product is introduced, slow sales, no profits;

2) Growth- rapid market acceptance and substantial profit improvement;

3) Maturity- slowdown in sales growth because of widespread acceptance, stabilization;

4) Decline- downward drift in sales, erosion of profits.

A sample PLC(Product Life Cycle) curve is shown above 

Saffola, Marico’s second flagship brand, is positioned strongly on“good for the heart” equity.
Saffola constantly urges consumers to adopt a healthy lifestyle (its “Walk” campaign).
Saffola has been innovating to come up with products to support the trend of an improved lifestyle that consumers want to adopt.

During FY09, Saffola’s turnover still comprised primarily of refined edible oils. The oils franchise of Saffola grew by 11% over FY08.
The growth during the second half of the year was much slower, even though the growth rate picked
up to 5% during Q4FY09.

Saffola retails at a significant premium to other refined edible oils in the market.

In anticipation of lower average prices of safflower and other oils during FY10, the company has taken some price reductions in Saffola. (Saffola Gold from Rs 120 to Rs 110, Saffola Tasty from Rs 99 to Rs 94 and Saffola Active from Rs 99 to Rs 89 (all prices per litre)) and achieved a growth rate of 10% in FY10.