At the Introduction Stage, the product is born. It may be entirely a new product or a new version of some basic product. This is a very risky stage because a high percentage of new products fails during this period. So, the following strategies can be adopted to introduce the product successfully :
(i) Proper advertisment and publicity of the product.
(ii) Attractive gifts to customers as an introductory offer.
(iii) Attractive discounts to dealers.
(iv) Removing technical and other defects from the product.
(v) Skimming the cream pricing policy, i.e., higher price to recover heavy promotional costs during the initial period.
At the Growth Stage, the product is accepted by the customers and the traders, the demand and sales grow rapidly, distribution is widened, competition increases and prices fall. The following strategies may be adopted during this stage :
(i) Heavy advertising to create brand image and to stimulate sales.
(ii) Expanding distribution channels to make the product available wherever demanded.
(iii) Keeping the price at competitive levels.
(iv) Greater emphasis on customer service.
(v) Introduction of new versions of products to cater the needs of different types of customers.