Product life cycle

The Product life cycle is an appropriate discussion of what happens to a product over time. Zandu Balm is launched as a remedy for headache and body pains with an ayurvedic formula. They tried establish themselves as a trusted brand among customers. Also as it is a natural product and because of its effective perfomance people started adopting it.

Product life cycle explains the stage of the product in market.  Most products life cycle can be portrayed as a bell curve. Products undergo four stages from the time of its introduction into the market to the time of its exit from the product. They are

• Introduction

• Growth

• Maturity

• Decline

Th above PLC curve shows the relation between sales and profit with time. 

Zandu realty ltd established in 1910 is the first company in this category, who formulated Zandubalm and manufactured it. It went public in 1919 by issuing public shares. Zandu balm being first in its category gained popularity and trust over the years. Then it went through a rapid growth stage. People started seeing it as a personal product and got used to it and eventually became market leader with 43% market share. During this growth phase many other companies launched similar products resulting in high competition. Zandu balm managed to overcome its competitors by robust promotional strategy and distribution. 

Later Zandu pharmaceuticals was bought by Emami ltd in 2008. As it reached maturity phase being a market leader its trying hard to maintain its position. The advent of new products like pain relief sprays  pose a serious threat to its position. If it could not cope up with the changing trends soon will go into decline position.