Any product that is introduced into a market has a shelf life, this can be overcome easily by making or purchasing new products. A product in general has a product life cycle, usually it goes through four major stages in its lifecycle. FMCG products or fast moving consumer goods have a long product life cycle, people continue to buy the product for a number of years as long as it is in stock. Over the years people have observed many products are no longer available in the markets that they go to, this usually happens when the product has completed its lifecycle.
The four stages of a typical fast moving consumer good are:
Introduction into the market
When the product enters the market for the first time. The demand for the product needs to be increased; this is usually done, by giving the customer some samples so that they can try before they purchase the product. This stage helps the company to identify potential issues the product might have, from the consumer’s point of view.
After the product is introduced into the marker the sales increase, people start to buy the product when required, the public is aware of the products features and benefits at this stage.
Production costs usually reduce at this point as the product would have sold several times during the growth stage. Price of the product usually drops down and the sales peek at this time. During this stage competitors introduce their own products, which have, are off similar characteristics.
Sales would have dropped down significantly, price of the product increases and consumers tend to buy other products. Getting profits becomes very hard at this stage. The product is then stopped when it reaches this stage.
At times certain companies re-brand the product and release it so that their sales can increase, the product life cycle begins again soon after this.
This article explains the typical product life cycle of a fast moving consumer good. Several products are made some successful and others not, over the year’s production of several products have been stopped as they have completed their life cycle. The stages need to be understood very clearly, if the company wants to sell the product for a longer time, the product needs to evolve.