Characteristics of Product Growth Stage

Characteristics of Product Growth Stage

Product growth stage is second stage of product life cycle. Characteristics of this stage are being elaborated below

1.    Sales is Increasing

In these stage sales is increasing day by day. Customer is increasing with a great pace. In this stage customer preference and choices is being closely observed by the marketing department to increase demand.

2.    Price is Still High

Prices will remain high, if the demand is high or more than expectation, otherwise, there will be a slight decline in the price. Product prices in this stage are totally depends on demand of product. Prices may be lowered to boost demand.

3.    Marketing Cost is High

Marketing cost has come down from the introduction stage, but still a huge budget is required to remind the customer.

4.    Distribution is expending

Product is being introduced to new segment of market after being getting positive response from the initial launch. Retail demand is also high for the product in this stage.

5.    Competition is expected

Competition is expected, especially if the product is performing well in the market, because your competitor can not leave the market open for you.

6.    Cost are reducing

Due to high demand and high production level, the unit cost of the product is falling; moreover, there is also tendency of lower advertising cost.

7.    Profit has started

It is expected that product is earning some profits, and profit is growing with great speed with each day passing. This is due to high volume of sales and lower unit cost of product.