What is Maturity Stage? Definition, Features, Strategies, and Examples

What is Maturity Stage in PLC?

The maturity stage is the third phase of a product’s life cycle (PLC). At this point, the product experiences its peak sales, profits, and competition. It’s marked by fierce competition in the market as numerous companies offer similar products.

Businesses often expand their product lines to cater to various customer segments. While profits remain high, they begin to stabilize or decline toward the end of this stage. To maintain a competitive edge, companies invest heavily in sales promotion, offering discounts and incentives.

Market segmentation and product specialization become more prevalent as companies strive to meet diverse customer needs. Price and product positioning strategies are vital for sustaining growth during this stage. Eventually, the market becomes saturated, and the product may enter a decline stage as competition increases, and consumer demand starts to wane.

Characteristics of Maturity Stage

The growth stage of PLC is characterized by intense competition and peak sales. Here are the five to mention:

Rapid Sales and Profit Increase

In the growth stage, a product experiences a surge in sales and profits. Think of it like a rocket taking off. As more and more customers discover the product and make purchases, revenue skyrockets. The sales graph shoots upwards, indicating strong demand and profitability. This is when companies start making good money.

Read More: Growth Stage – Definition

Increasing Competition

The growth stage is like a beacon for competitors. It’s like opening a popular ice cream stand on a hot summer day – soon, other vendors appear nearby. New players enter the market because they see the potential for profits. This means that the competition level rises quickly. Many companies jump in to get a piece of the pie.

Product Improvements

Companies strive to make their product better during the growth stage. It’s like trying to make a better smartphone or tastier ice cream flavors. They might add new features, improve quality, or enhance the overall customer experience. The goal is to keep customers coming back for more and stay ahead of competitors.

Expanded Distribution

In this stage, you’ll see products showing up in more places. Just like setting up more ice cream stands at popular beaches, businesses expand their distribution. They want their products available in as many convenient locations as possible to reach a broader customer base.

Read More: Introduction Stage – Definition

Focus on Customer Satisfaction

Happy customers come back for more. Companies realize this in the growth stage. They work hard to ensure their customers are satisfied with their products. Satisfied customers become loyal customers who keep coming back for more.

Marketing Strategies For Growth Stage

Here are the six strategies you can employ to be competitive and successful in the growth stage of the product life cycle.

Product Enhancement

During the growth stage, you should focus on making your product even better. Imagine you have a popular smartphone, and you keep adding new features like better cameras and longer battery life.

These improvements attract more customers and keep your existing ones happy. By continually enhancing your product, you can stand out in the crowd of competitors and achieve greater success.

Read More: STP in Marketing – Definition

Pricing Tactics

Using smart pricing strategies can help you gain a significant advantage. Think of it like offering discounts on your popular ice cream flavors during the summer. Customers are drawn to the lower prices, leading to increased sales. By strategically adjusting your pricing, you can attract a larger customer base and grow your market share, even while facing fierce competition.

Market Expansion

Like opening new ice cream stands in different neighborhoods, expanding your market reach is crucial. To succeed in the growth stage, you should aim to enter new territories and reach more customers.

This might involve entering international markets, opening additional stores, or offering your product through new online platforms. Expanding your presence ensures a broader customer base and more significant sales.

Read More: The 4 Cs of Marketing

Effective Promotion

Successful marketing in the growth stage is all about persuasion. You need to go beyond merely informing customers about your product. Imagine you’re promoting your ice cream stand by giving out free samples and organizing fun events at the park.

These persuasive tactics attract more customers and keep them coming back. By focusing on persuasive advertising, you can maintain strong sales and profits.

Diversification

Just like adding new, exciting ice cream flavors to your menu, diversification can be a game-changer. It involves expanding your product line to cater to different customer preferences.

By offering more variety, you can capture a broader audience. If your smartphone company starts producing tablets, you’re appealing to a different segment of the market, helping you grow even faster.

Strong Customer Relationships

Building and maintaining solid relationships with your customers is essential in this stage. It’s like remembering your regular ice cream customers’ favorite flavors and having them ready.

When customers feel valued and appreciated, they become loyal. Loyal customers not only return for more but also become advocates, recommending your product to others. Strengthening these connections is a surefire way to keep the growth momentum going.

Read Next: 3 Ps of Marketing Mix

Examples of Products in the Maturity Stage

Let’s look at some famous companies who have been in the maturity stage:

• Traditional Soft Drinks: Products like Coca-Cola and Pepsi have been around for decades and have reached a level of market saturation. They have a stable customer base, and their sales and profits remain relatively consistent.
• Detergents: Laundry detergents, dishwashing liquids, and other cleaning products often enter the maturity stage. These products cater to essential everyday needs, leading to a consistent demand that stabilizes over time.
• Automobiles: Cars, especially popular models from well-established brands, often enter the maturity stage. While there are innovations in the automobile industry, certain models maintain a stable market presence with consistent sales.
• Cigarettes: Tobacco products, despite being subject to regulations, are an example of items in the maturity stage. The customer base for these products remains relatively stable, with consistent sales over time.
• Processed Foods: Many processed foods, such as canned goods and certain types of snacks, can enter the maturity stage. These products have a consistent market demand, especially among consumers looking for convenient food options.