PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE

Every Product come with a shelf life. Product life cycle describes the stages a product goes through from when it was first thought of until it finally is removed from the market.

The Various stages in Product life cycle are:

Introduction stage
In the introduction stage, the product is released/introduced to the market; pricing and branding decisions are made and marketing begins. Robert Chesebrough first discover VPJ in 1880 at his oil fields in Pennsylvania

Growth stage
In the growth stage, sales are increasing at their fastest rate and vendors work to increase brand recognition and market share. By 1977, VPJ was considered a household staple used by over 90% of the population. The product accounted for $22.5 million in CPI sales in 1976, a healthy increase over the $17.8 million in sales realized in 1977. However, sales growth in 1977 was projected to be flat, budgeted at $22.9 million for the year.

Maturity Stage
In the maturity stage, market saturation has been achieved. The attempt is to maintain market share. Sales are near their highest, but the rate of growth is slowing down, e.g. new competitors in market or saturation. Sales begin to decrease, different strategies may be employed to try to keep the product in the maturity stage.

Decline Stage
The final stage of the cycle, when sales begin to fall and the product is dying and needs to exit the market. Not applicable for VPJ yet.

To Conclude:
Vaseline Petroleum Jelly is in its maturity phase as it is a market leading product and enjoys its market share of 90% in the petroleum jelly market and has stable sales, also VPJ is introducing new flavours in the same category. They are widening their scope to rural markets. All this has lead to sustainable growth of VPJ.

In the ILC for Skin care industry specially for petroleum jelly HUL has a monopolistic position of 90% market share.