PRODUCT LIFE CYCLE

A new product progresses through a series of stages starting from introduction, growth, maturity and end by decline of the product. This sequence is known as Product Life Cycle. And the factors that influence the PLC of a product are changing marketing situations which in turn affects the marketing strategy and marketing mix

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1. Introduction- In this stage company launches its product in the market and introduces it to the customers.

Head & Shoulders came into Indian shampoo industry in 1997 during that time it had many competitors. When the brand was launched it was in the nascent stage and was dominated by Clinic All Clear. With a hyped launch of Head & Shoulder help it in gaining the popularity and growth in the anti dandruff shampoo market. In total shampoo market, anti dandruff shampoos constitutes about 15%of the market shares, and Head & Shoulders leads this segment.

 2.  Growth- The second stage of a product life cycle is Growth. In order to survive in the market a product has to keep growing. It is point where brand is built and shares are increased. At this stage the product gain recognition and buyers also repeat the purchase pattern. For sustaining in the market Head & Shoulders had to come up with different marketing strategy like it has different variety, quantity and prices. And was distributed to all the possible area so as to reach to its target customers.

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        3.  Maturity- The third stage of the product life cycle is maturity. In this stage focus is on enhancing the quality of the product and promotion. The price of the product is kept low because of new competition and more incentives are given so as to increase the sales. Head & Shoulders in the PLC is at the maturity stage because at this time the company sale is slow down and it is trying to attract the potential buyers. But the different new brand of the Head & Shoulders which the company started is on the first or the second stage.

·     4.   Decline- The fourth stage of the product life cycle is decline. In this stage the product start phasing out, prices of the product is cut down, the distribution is also limited, advertisement is reduced and sales promotion is also reduced to minimal level. In case of Head & Shoulders it has not reached its decline stage yet as it is still in its maturity stage. And it is trying to revive its product with new innovative strategies and ideas