1.
SUBMITTED TO: MRS JYOTI BHADORIA
SUBMITTED BY: TANISHA MEHTA

2.
BUSINESS LIFE
CYCLE
A REPORT ON

3.
INTRODUCTION
A life cycle is a course of events that brings a new
product into existence and follows its growth into
a mature product and eventual critical mass and
decline. The most common steps in the life cycle
of a product include product development, market
introduction, growth, maturity, and
decline/stability.

4.
After testing, a product enters the Introduction stage and the product will be available in
the market.
 Slow Sales
 Low Profits or Losses
 High Cost due to high Promotional Expenses
 Generally High Price
 Less Competition
 Build selective distribution
 Create product awareness and trial
1-INTRODUCTION STAGE

5.
More Customers will start buying the product. This is because customers of Introduction
stage are buying again or have recommended to their circles.
 Rapidly rising sales
 Expansion in the scale of production
 Rising Profits
 Lower unit cost
 Competition
 Stable or slightly reduced price
2- GROWTH

6.
In this stage, the demand for the product reaches a saturation point and Competition
becomes severe.
 High sales
 Build more extensive distribution
 Average cost per consumer decreases
 Maximum profit
 Low competition
 Diversify brand differences and benefits
3- MATURITY

7.
In this stage, there is no growth of sales. Competition becomes tough. The firm uses
different strategies.
 Prices tend to fall
 Profits starts declining
 Stiff Competition
 Product supply may exceed demand
 Product modification and improvement
SATURATION

8.
In this stage Sales began to fall and there may be little or no profit. Production cost and
inventory cost become larger. This stage will lead to gradual phasing out of product.
 Rapid fall in sales
 Fall in prices
 No promotional expense
 Reducing distribution network to the minimum
 Product technology becomes obsolete
4- DECLINE

9.
Not all the products follow this life cycle-
 Fads
 Styles
 fashions
BUSINESS WHICH DOSEN’T FOLLOW BLC-