PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE

Every product that is introduced in the market comes with a shelf life. It typically undergoes four stages. FMCG products usually have longer life cycle as people once buy a product, continue to buy it for a longer period of time till its inventory lasts.

The four stages of a Product Life Cycle are:

    1.  Introduction Stage:

Surf Excel was introduced in 1959 as "Surf" in India under HUL. As it was a new to the world category it had the first movers advantage.

2. Growth Stage:

As the detergent market started growing in India many of the competitors came into picture with better prices. Surf Excel introduced variety of products and changed its campaign from " Lalitaji - Surf ki kharidaari mien hi samajhdaari hai" to " Daag ache hai". 

 3.  Maturity Stage:

Sales peak during this stage. Since a long time Surf Excel has stayed in the maturity stage as it has the highest market share. Many competitors introduce their products. The company should modify and upgrade their products to stay at the peak.

4. Decline Stage:

Sales drop down at this stage. Profit is the lowest in this period. The company changes its focus and concentrates on loyal customers or changes the target group to comparatively lower income groups so as to maintain sales.

CONCLUSION:

According to the Financial Report of HUL (2012-2013) Surf Excel Detergent and Soap markets have grown from 46% to 49%.

Surf Excel is in its maturity phase as it has the highest market share.
The biggest challenge the company is facing is:

• To maintain its market share with so many competitors with lower prices.
• Therefore it is introducing more range of products and technologically upgrading. 
• They are widening their scope to rural markets. All this has lead to sustainable growth.