Maturity phase strategy
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| Maturity phase strategy |
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This phase is followed by a decline in sales growth, which is associated with the saturation on the market and the appearance of the other products which meet customers needs. In this phase, managers should adapt the action specific to the current competitive position.
The product maturity phase is a stage in the product life cycle where sales growth begins to slow down and eventually plateau. This phase typically follows the introduction and growth phases of the product life cycle.
Fighting sales decline
There are several strategies that companies can use to prevent a decline in sales during the product maturity phase, including:
- Continuously improving and updating the product to keep it relevant
- Expanding the target market or customer base
- Diversifying the product line
- Implementing a strong marketing and advertising strategy to increase brand awareness
- Developing a strong and loyal customer base through excellent customer service and building customer relationships.
- Creating bundles and packages with complementary products.
- Lowering the prices to increase affordability and attract price-sensitive buyers
- Offering services like maintenance and repair to increase customer retention.
Proposed actions
The dominant competitive position
Strong competitive position
- maintain and grow along with the industry,
- invest company resources
Average competitive position
- keep company position, find a niche and try to protect it
- minimum or/and selective investments
Favourable competitive position
- finding a niche or a gradual withdrawal
- minimum investments or disinvestment
Weak competitive position
- development or gradual withdrawal
- selective investment or disinvestment
References
- Tedlow, R. S. (2014). 2 The fourth phase of marketing. The Rise and Fall of Mass Marketing (RLE Marketing), 25, 8.
