Explain the strategies to be adopted during the introduction stage and growth stage of Product Life Cycle.

Strategies during Introduction Stage:

The introduction stage is characterised by high costs, low sales, limited distribution and high prices. The following strategies may be employed to introduce the product successfully:

1. Advertising and publicity — Proper advertisement and publicity of the product. For example, money-back guarantee may be offered to persuade people to try the product.
2. Introductory offers — Attractive gifts to customers as an 'introductory offer' to encourage trial.
3. Selective distribution — Selective distribution and attractive discount to dealers.
4. Removing deficiencies — Removing technical and other deficiencies in the product based on customer feedback.
5. Skimming pricing — Higher initial price to recover heavy promotional costs and investment.

Strategies during Growth Stage:

The following strategies may be adopted:

1. Heavy advertising — To create a strong brand image and stimulate sales.
2. Expanding distribution — Widening distribution channels to make the product available wherever demanded.
3. New versions — Introducing new versions of the product to cater to the needs of different types of customers.
4. Competitive pricing — Keeping the price at competitive levels to attract more customers.
5. Customer service — Greater emphasis on customer service to retain customers and build loyalty.