PRODUCT
LIFE CYCLE & INDUSTRY LIFE CYCLE
PRODUCT LIFE CYCLE
Product life cycle is
the market span of a product from its introduction till the time its demand drops
to zero. A business analyst uses product life cycle to analyze and map the
common stages of commercial products.
As shown in the
diagram there four stages in the product
life cycle
From RELISPRAY's perspective the product life cycle can
be seen as follows:-
(i) INTRODUCTION: RELISPRAY was launched in the market in 1986 by Midas Care Pharmaceuticals Pvt. Ltd. At that time the pain reliever spray market was unexplored in India and it was a major challenge to inform potential consumers.
Challenges: High risk venturing out into unexplored territory. Low profits, slow sales growth and high expenses to build product awareness and increase sales & consumption. Relispray as a brand had to face a challenging task of introducing the Indian consumer to the possibility of purchasing and using a pain reliever spray, which at that time was non-existent.
Opportunities: Early mover advantage. Being a category creator has an advantage of reaping long-term dividends. Early adopters were bound to purchase and increase the sales at the initial stage for RELISPRAY
(ii) GROWTH: RELISPRAY after a successful launch in a matter of two decades had rapidly rising sales and profits, and thus entered a growth stage. In this stage, the advertising and promotional costs reduced and the emphasis was more on customer loyalty and retention. To sustain market share growth RELISPRAY introduced new variant RELISPRAY NITRON catering to a specific target audience
Challenges: Build trust, maintain consumer loyalty, improve product quality and keep the prices low.
Opportunities: Grabbing a strong foothold in the market as the instant pain reliever. Increase the reach through improved distribution network.
(iii) MATURITY: With Sprays like Volini by Ranbaxy and Moov bu Paras Pharmaceuticals as well as alternatives such as Moov Gel, Volini Gel, Zandu Balm, Tiger Balm etc competition intensified and rate of sales growth declined. Despite heated competition, Relispray sales volume stabilized and it continues to hold the position in the market. Change in its marketing strategy can be seen in the price promotions and discounts, which now are an integral part of Relispray selling strategy to beat the competition.
Challenges: A new breed of alternatives emerging in the segment. Fierce competition evolving. Ranbaxy's Volini due to its aggressive marketing push has eaten away a large piece of market share pie and has a rapidly growing sales volume, providing a threat.
Opportunities: Growing disposable incomes of the middle class Indians and rise in the number of people wanting instant relief still provide an ample opportunity that can be utilized by REISPRAY
(iv) DECLINE : Sales fall in the decline stage of the PLC which may occur due to a number of reasons : technological advances, shifts in consumer tastes and increased competition. Relispray continues to have an impeccable track record and is still far away from the decline stage.
CONCLUSION
Relispray can be seen as product that has evolved through the years through the development, introduction, growth phases and is currently in the maturity phase of the Product Life Cycle(PLC).
(i) INTRODUCTION: RELISPRAY was launched in the market in 1986 by Midas Care Pharmaceuticals Pvt. Ltd. At that time the pain reliever spray market was unexplored in India and it was a major challenge to inform potential consumers.
Challenges: High risk venturing out into unexplored territory. Low profits, slow sales growth and high expenses to build product awareness and increase sales & consumption. Relispray as a brand had to face a challenging task of introducing the Indian consumer to the possibility of purchasing and using a pain reliever spray, which at that time was non-existent.
Opportunities: Early mover advantage. Being a category creator has an advantage of reaping long-term dividends. Early adopters were bound to purchase and increase the sales at the initial stage for RELISPRAY
(ii) GROWTH: RELISPRAY after a successful launch in a matter of two decades had rapidly rising sales and profits, and thus entered a growth stage. In this stage, the advertising and promotional costs reduced and the emphasis was more on customer loyalty and retention. To sustain market share growth RELISPRAY introduced new variant RELISPRAY NITRON catering to a specific target audience
Challenges: Build trust, maintain consumer loyalty, improve product quality and keep the prices low.
Opportunities: Grabbing a strong foothold in the market as the instant pain reliever. Increase the reach through improved distribution network.
(iii) MATURITY: With Sprays like Volini by Ranbaxy and Moov bu Paras Pharmaceuticals as well as alternatives such as Moov Gel, Volini Gel, Zandu Balm, Tiger Balm etc competition intensified and rate of sales growth declined. Despite heated competition, Relispray sales volume stabilized and it continues to hold the position in the market. Change in its marketing strategy can be seen in the price promotions and discounts, which now are an integral part of Relispray selling strategy to beat the competition.
Challenges: A new breed of alternatives emerging in the segment. Fierce competition evolving. Ranbaxy's Volini due to its aggressive marketing push has eaten away a large piece of market share pie and has a rapidly growing sales volume, providing a threat.
Opportunities: Growing disposable incomes of the middle class Indians and rise in the number of people wanting instant relief still provide an ample opportunity that can be utilized by REISPRAY
(iv) DECLINE : Sales fall in the decline stage of the PLC which may occur due to a number of reasons : technological advances, shifts in consumer tastes and increased competition. Relispray continues to have an impeccable track record and is still far away from the decline stage.
CONCLUSION
Relispray can be seen as product that has evolved through the years through the development, introduction, growth phases and is currently in the maturity phase of the Product Life Cycle(PLC).
The Pain
Reliever Industry consists of :
ü Rubs & Balms
ü Gels & Ointments
ü Sprays
ü Pain Reliever Tablets
The
advertising spend of the industry is approx 210 Crores. (Source Map)
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