What happens during the growth stage of the product life cycle?

During the growth stage of the product life cycle, a significant characteristic is that new competitors enter the market. This influx occurs because the initial success of the product typically attracts attention from other businesses looking to capitalize on the emerging demand. As the market expands and customer acceptance increases, the product demonstrates the potential for profitability, which encourages competition.

This is a crucial phase where sales begin to rise, and companies that recognize the growth opportunity will often launch similar products or variations to capture a share of the market. It’s a dynamic period marked by increasing consumer awareness, expanding distribution channels, and marketing efforts aimed at differentiating products from the competition. The growth stage emphasizes innovation and improvement to stay ahead in the market, positioning the brand favorably against new entrants.

In contrast, during the other stages mentioned, sales are either declining, profitability has already peaked, or sales remain flat, none of which characterize the active and competitive nature of the growth stage.