Product Life Cycle consists of four stages: introduction stage, growth stage, maturity stage, and

decline stage.

Introduction stage

In this stage, the product is introduced in the market. As consumers are not more aware of the
product, profit margins, sales volumes, and competition are low. Price is relatively high, and
distribution is limited.

In Nirma's case, it started with a low-cost concept, i.e., a unique market strategy, and in significantly
less time, the brand became popular among the consumers. It started as a small business and tried
to focus on the rural sector, and it distributed its products door to door, and it turned out to be a
significant success.

Growth Stage

In this stage, the product gains acceptance among the consumers, so sales and demands proliferate.
Prices fall, and competition increases. As production and distribution are increased so, economies of
scale occur. Companies attempt to improve the market share by more profound penetration into the
existing market or enter into new markets.

In Nirma's case, it acquired almost half of the market share in this stage. It became the leading
detergent company giving tough competition to its rival Surf. Also, in this market, other brands
started to enter with the same low-cost concept.

Maturity Stage

In this stage, due to high competitive pressure, prices, and profits fall. Growth rates of the firm
become stable, and expenditures increase on promotion to gain brand loyalty. To attract new
customers and increase sales, firms try to modify their products and develop new product uses.

In Nirma's case, its market share declined due to introducing other brands into the detergent
industry. Over the years, the demand for Nirma has declined. To revive the growth, Nirma
introduced a new washing powder in the premium segment and priced almost 40% lesser compared
to competitors.

Decline Stage

In this stage, prices decline, and firms fight to retain market share and replacement sales due to stiff
competition. Repeat orders disappear, and few new customers buy the product. Promotion
expenditure is also drastically reduced, and firms try to disappear this particular product from the
market.

In Nirma’s case, the company failed to retain the interest of the consumers. Also, it failed to gain
loyalty in the low-cost category as consumers started perceiving its products as cheap products. It
tries to differentiate the product and positioning with the introduction of new products but cannot
gain its reputation. Also, the increase in the income level of the consumers made Nirma an inferior
brand.

Nirma is currently in its decline stage in the industry. The company still has a brand recall in
Generation Y's minds, so; there is a possibility of brand revitalization. Its success lies in the detergent
products, so the company can try to penetrate the market with its new and innovative product
variants in the same product lines.