Berrylicious is a very famous wafer brand among children, currently in its growth stage. Which of the following statements is/are correct about this stage?

(1) Competition is virtually absent.

(2) Marginal producers are forced to go out of the market.

(3) Promotional expenditure remains high.

(4) Sales may decline rapidly.

1. Only 2
2. Only 2 and 3
3. Only 1 and 4
4. Only 1

No correct option is given.

Reason — During the growth stage, demand and sales grow rapidly, distribution is widened, competition increases and prices fall. Promotional expenditure remains high, though it falls as a percentage of sales turnover. Therefore, statement 3 is correct. Statement 1 is a feature of the introduction stage, statement 2 belongs to the maturity stage, and statement 4 is a feature of the decline stage. Since the given options do not include "Only 3", none of the options is fully correct.