Q. Illustrate the Product life cycle?

Every food product passes through different phases throughout its life and therefore, the need for development of a new product arises. Each product shows introduction, growth, maturity and decline during its period of existence. The various stages of product life cycle are shown in Figure.

Let us review these phases in the product life cycle one by one.

1) Introduction phase

The introduction phase, as is evident in Figure, marks the launch of the product in the market.

2) Growth phase

Once the product crosses the introduction phase, it enters the growth phase. Generally, about 95% of the products fail at the introduction phase. Thus, a mere 5% are able to enter the growth phase. The growth phase involves strategy of product modification, enlarging distribution and maintaining a competitive price level. The strategy also involves one of extending product to different use situations and considering newer packaging alternatives to attract more and more new customers.

3) Maturity phase

Maturity phase is characterized by slowing of growth of sales and profits, as depicted in the Figure. It also sees a boom in the market demand as more and more customers are now willing to accept the product. This phase is also marked by strong competition.

4) Decline phase

Decline phase, as is evident from Figure, is the phase when sales decline because customer preferences have changed in favour of more efficient and better products. Customer's value perception of the product also undergoes a change. It leads to the gradual withdrawal of the product from the market.