During the growth stage of product life cycle, the organization uses different strategies such as quality improvement, adding new features, searching new market segments etc. to sustain the rapid market growth as long as possible.
The main strategies used by the firms in the growth stage of product life cycle can be pointed out as follows:
1.Improve The Quality Of The Product
Many products have technical problems during the introduction stage of product life cycle. These problems need to be solved during the growth stage. The organization has to make every edeavor to improve the overall quality of the product in this stage.
2. Add New Features And Models
Market growth is the best time to introduce new features in the product. A firm may also extend the product line and introduce new models. The reputation of the main product can easily attract buyers for the new models and brands. The new models can be promoted on a minimum of additional promotional costs.
3. Enter Into New Market Segments
In the introduction stage of product life cycle, the organization normally enters and establishes strong foothold in one market segment. During the growth period the organization should move into new market segment for rapid market expansion.
4. Use New Distribution Channel
In the introduction stage of product life cycle, the firm may face difficulty in finding distributors for the new product. During the growth period, many distributors show their interest in the product. This is the appropriate time to use multi-distribution system to achieve wider market coverage.
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5. Change Advertising Theme
In the introduction stage of production life cycle, the advertising is targeted at building buyers' awareness and knowledge about the product and its various attributes. During the growth period the advertising objective will be focused on building buyers' conviction and brand loyalty.
