7. Growth phase

Overcome the technical, commercial efforts and of communication, own of the previous phase, even of that of turbulencies, if they had existed, the product can be made industrially and the market is opened, what allows a gradual development of his sales. This phase is characterized for:

  • Vertical ascent of the sales.
  • High percentages are reached on his potential market.
  • The production process is perfected.
  • Efforts are realized to increase the production.
  • New competitors begin appearing in increasing number.
  • Possible appearance of difficulties of treasury due to the big expansion.
  • Still high manufacture costs.
  • High price.

In short, this phase is characterized by positive profitability that has to reinvertirse, in its entirety, to finance the growth and the technical, commercial efforts and of communication proper of the same one. A company that has most of his products in this phase will throw, in balance, high benefits, but, of incomprehensible form for the shareholder, dividends cannot be distributed, since the demanded financing effort is very important.

7.1. Questions and strategies in this stage

A) Product

  • Can we begin making of long series?
  • Do we begin a study of possible modifications?
  • Have arisen problems of quality and manufacture of products?
  • Do we have many claims in the after-sales department?
  • Is it the moment to extend the scale?
  • Do we open to new markets?

B) Price and conditions

  • Do we check the sale prices?
  • What prices does the competition have?
  • Do we fix a price policy disuasorios?
  • Do we modify the conditions to the intermediary channels?
  • Do we encourage the commercial exclusivity of our products?

C) Distribution channel

  • Do we open new channels?
  • What acceptance grade does the product take as his quality and economic conditions?
  • Do we create a team of support for the channels?
  • What result is obtained of the comparative studies in the different channels?
  • Do we leave anyone for the sake of more profitable others?

D) Commercial organization

  • Are we covering the pronounced targets?
  • Must we extend the commercial network?
  • Do we have to look for new incentives for the commercial team?
  • What is the grade of integration of the sellers with the product?

E) Communication campaign

  • Are we differing from the messages of the competition?
  • Have we reinforced to the maximum the campaigns?
  • Are we designing a politics of creation of image of mark?
  • Are we managing to do mark?

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