Product Life Cycle

Product Life Cycle:
A commercial product undergoes metamorphic stages in its life. These stages constitute the Product Life Cycle (PLC). They illustrate the various phases like induction, growth, maturity and decline of a product in the market.

A product enters into the market owing to a lot of pre-launch research. The product is under constant development and the pre-launch activities are carried out with rigour. Early investors and creditors are identified.

Business Idea:
Till 1958, there were no breads in the organized sector and bread consumption was a habit typified by the British. Then, a mechanised bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the habit of eating white sliced bread.

Introduction:

The first sale of the product, (bringing in custom) marks the introduction of the product. The first sale of the Delbis bread commemorates its introduction phase.  The introduction stage gives weighted importance to the marketing and promotion of the product. The phase is characterised by low sales and as an outcome, low revenue thence low profit. The product is currently just thrown open into the market and is waiting for acceptance from the customer.

The Britannia bread was introduced in the late 50’s. This phase also sees customers known as the early adopters, who welcome new products with ease and start purchasing the product at this stage.

In its introductory phase, Britannia held the monopoly in the bread market in India.

Growth:

The growth phase shows gradual pickup in sales. Revenue is generated and the product is well recognised and welcome in the market. The early majority breed of customers, start purchasing the product after the initial review showered by the early adopters.

Advertising and marketing play key role in this phase.

From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread - Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price segments in the bread consuming market.

Maturity:

Maturity phase is where the sales are at an all time high. The market is raided by a several new players. The competition is fierce and everyone is vying for market share during this phase. Survival becomes the major objective during this phase.

Britannia Daily Fresh Bread, which finds its way to over 6 lakh households daily, is the main stay of the company’s non-biscuit business at present. Britannia added more variety like
Cherry bread, cup cakes, variants to already existent bread. Britannia hopes to drive this emerging business through the exploding modern trade and has already gained access to Reliance Retail, Trinethra and Fabmall for its breads. Britannia is widely recognized as an innovative marketer.

The late majority is the group of people who start buying at this stage.

Decline:

Decline is when the product no longer finds its place in the shopping basket. The sales declines and gradually the product fades out of the market. 

It is a long time before Daily Fresh sees its decline.