• Marketing Strategy for Growth Stage

    The main characteristics of the Growth stage which help to define the appropriate marketing strategies are

    • Growth stage is marked by increase in sales and high growth
    • Early adopters like the product and early majority buys the product
    • Late majority starts buying at the end of growth stage
    • Higher competition leads to more innovations and added features in the product
    • Objective is to maximize the market share and maximize profit
    • Sales and profit growth starts declining at the end of this stage.

    Profits increases due to

    • Lower manufacturing cost per unit as the production volume increases significantly
    • Promotion cost is spread with larger volume so it becomes less per product

    As the growth start declining at the end of this stage, companies aim will be to keep a product during this stage for as long as possible. Companies use the following marketing strategies during this product life cycle stage to retain the growth

    • Companies try to sustain rapid market growth for as long as possible. Conduct market surveys to get the customer feedback on the product
    • Add new features, improves product quality and looks based on the customer feedbacks and market survey
    • Add new models and versions with different prices to increase customer acceptance and base. Low price models can attract highly price sensitive customers.
    • Offer better warranty and after sales services to boost sales
    • Enter new markets in new geographic locations
    • Increase distribution coverage and enter into new distribution channels to reach each and every corner of a market
    • Increase advertising from product awareness to product properties
    • Reduce price to attract more customers who are more price sensitive

    Products enjoy healthy growth in sales volume and profit as long as they stay in this stage and all the marketing strategies are finalized to achieve the same.

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