Each of the product life cycle has its own characteristics.The introduction stage is most expensive stage in the life span of a product .As products have a limited life span so most of companies invest heavily on new product to run successful business.When company introduces new product to the buyers the production process is new and sales of the products are few.Even though sales are slow ,but it will rise gradually with time.For a new product cost of research and development ,customer testing and marketing needs will be high.