Question

Patricia has just taken over a line of organic socks for her company. She looks at the company records and sees sales have peaked, profit margins are declining, and there are many new competitors in that category. Which stage of the product life cycle are her socks in? Explain your answer.

Answer 1

The product is in second stage of product life cycle.i.e., growth stage. In this stage the product may have lot of sale and high demand. In the growth stage there will be high competition and competitors might start releasing duplicate at a lower cost. In this stage companies may lower the product price and adopt competitive pricing strategy.

In the growth stage consumers are already buying the products and demand is increasing. The product become more popular while sales are increasing. In this stage the company may still heavily invest on advertising and promiting to overcome the competitors.
As the the scope of product increase and market booms more competition makes down to make the product competitive in the market.

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