Product Life Cycle

Consumers buy millions of products every year. And just like consumers, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched. The product life cycle has 4 very clearly defined stages, introduction,maturity,growth and decline each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.

INRODUCTION

The first dairy, Kaira District Co-operative Milk Producers’ Union was established in the year 1946 in Anand district of Gujarat, which created Amul in 1955 and handed over the brand name to GCMMF in 1973. Since farmers sold all the milk in Anand through a co-operative union, it was commonly resolved to sell the milk under the brand name AMUL. At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the cooperativeness, the collection of milk increased.Between 1955 and 1970, milk production grew by barely 1 per cent annually, while per capita milk availability declined by an equivalent amount.

GROWTH

Amul milk production increased to 31.6 million metric tons by 1980-81, 53.9 million by 1990-91, and 84.6 million by 2001-2. The annual growth rate was 4.08 per cent during the first phase of Operation Flood. It was much higher (7.85 per cent) during the second phase, and production continued to grow at 5.05 per cent per year during the third phase.

As a result of substantial increase in milk production, milk consumption in India has risen from a low of 112 grams per day in 1968-69 to over 226 grams per day in 2002. With growing competition from brands like Nestle, Mother dairy, Britannia, Gokul; Amul introduced new products like Amul milk gold, Amul moti, Amul chai maza, Amul slim trim etc.

MATURITY

Amul is one of India’s most iconic brands. It is 1^st and only organization in the world to get ISO 9000 standard for its farmer cooperatives. Today Amul collects 11 Lakhs liters of milk everyday. It has become world’s largest pouch milk brand. With $2 billion in revenue, the brand is as recognizable across India as Coca-Cola and recently Amul milk has entered overseas market such as Mauritius, UAE, USA, Oman, Bangladesh, Australia, China, Singapore, Hong Kong and other South African countries. Today Amul Dairy is no.1 in Asia and no.2 in the world which is a matter of proud for Gujarat and the whole of India.

DECLINE

Decline is the stage where product decline and dies.  Though Amul milk went through controversy of “mozzarella-like milk” it survived and did not let the product decline. Also hardly any other products of Amul has seen the decline stage and now whose production is stopped.