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.