Blog

Examples of products in the growth stage

The choice depends upon factors such as the type of product, industry and existing competition. In addition to the above costs, you may find it difficult to find a supplier who is willing to stock your product during this stage. This article will give you a deeper understanding of what this model is and help you answer all the above questions with clarity.

Let’s use the same B2B amortization definition app to explore this idea. In addition to their usual SaaS users—agile development or finance teams—they could expand their reach to schools—the end users being teachers who need a tool to manage lesson plans and deadlines. For example, a project management app that typically targets agile development teams in the B2B SaaS industry could also target finance departments that work for SaaS companies. The maturity stage is usually recognized by a peak in sales, however, it is also known for a decrease in the growth of acquiring new consumers of the product under consideration . If your company checks off a plurality of these eight characteristics, you can and should be using a product-led growth strategy to grow product adoption. Yet even if all the criteria are met, the transition to PLG doesn’t happen overnight.

Every time someone sends an invite via the app, they are also automatically promoting the product and starting a viral loop. There are almost no barriers to entry and—here’s the key—because the product solves a nearly universal problem, it gets adopted quickly among invitees. This involves not only creating features and functionality that embody that value, but also removing things that distract from or create barriers to reaching the core value. It’s fair to say that users’ expectations are higher than ever. They want to be able to work wherever and whenever—without having to adapt their workflows to use your product.

51% of companies use at least eight channels to interact with their customers. AARRR is one of the most popular frameworks for growth marketing. Also known as the Pirate Funnel, this framework divides your growth strategiesinto five stages and assigns metrics to map this journey. The heart of your product growth framework are the tactics you’ll use to drive growth—and your tactics will heavily depend on the strategy you choose. For example, if you want to upsell accounts, you need to learn how your top users use your product to replicate it across other customers.

The End User Era: 2010s

If you’re in the business of moving product, it’s important to pay attention to how the life cycle applies to the products you sell. If most of your revenues come from products in the mature or decline phases of their life cycles, for example, you’ll be hard-pressed to grow your sales in the teeth of stable or declining demand. At the other extreme, if you’re too reliant on new products, the lack of an established cash cow to pay for those products’ marketing and R&D could sink you. Keeping a good mix of new, refreshed and established products can help stabilize your revenues, and give you predictable growth. Today, the world’s leading companies are using growth product management to drive growth by identifying opportunities and directing the product team’s efforts to optimize them.

Household-name PLG companies have turned to creating high-value content as a form of PLG marketing to attract new users to their products. Notion and Airtable’s template galleries serve as excellent examples. Other forms of content include product-related hubs, benchmark and data reports, and product education resources. To achieve short-term, business-focused objectives, product growth teams will almost certainly look at growing or enriching engagement with customers across every stage of the funnel. For example, they may be charged with growing the customer base, or pushing customers towards more expensive subscription plans.

What Is Discount Pricing Strategy?

But rather than owning a specific product, the growth PM is focused on improving a specific business metric or commercial goal. Older consumers in international markets are being targeted with different products. Thus, PLC strategies can keep the competition at bay and extend the maturity phase and profitability well beyond expected durations.

• Microsoft—which generates more than $200 billion in annual revenue—looms large over SaaS startups.
• However, consumers thought the new juice package looked like a less expensive brand, which made the quality of the product look poorer.
• Since then, the product life cycle theory has evolved to focus less on geography and more on marketing.
• Unfortunately, if your product doesn’t become the preferred brand in a marketplace, you’ll typically experience a decline.

However, if the target market isn’t the general public, then the price of the newer versions can be astronomically more than the previous versions. Although, this will most likely lead to a further drop in the sales volume of the iPhone. I recommend that brand managers in Apple Inc. the company that owns the iPhone product innovatively add to the product periodically in order to keep the product fresh in the minds of the consumers. Advertisement efforts should also increase in order to keep the product in the minds of the consumers. Also, I recommend that the prices of the newspapers should be reduced in order to compete in an already competitive business ecosystem.

Growth product management requires a deep understanding of the customer

Their products are constantly updated to make them appear fresh to consumers. The advantages of using a product’s life cycle for decision-making far outweigh its disadvantages. Combining the PLC approach with other project management methods, such as lean manufacturing, can increase the positive effects of adaptive management even further. With both of these strategies, there is no need for a development and introduction phase and the updated or new product enters the maturity phase right away. The four stages are development and introduction, growth, maturity and decline.

Car manufacturers modify their vehicles slightly each year to offer new styles and new safety features. Every three to five years, automobile manufacturers do more extensive modifications. Changing the package or adding variations or features are common ways to extend the mature stage of the life cycle. Pepsi recently changed the design and packaging of its soft drinks and Tropicana juice products. However, consumers thought the new juice package looked like a less expensive brand, which made the quality of the product look poorer.

In addition to providing blog articles and social media content that educate your audience and bring in leads, consider creating a learning hub for your product specifically, like Asana. Head here for more ways to gain and retain clients through B2B marketing automation. Use exit intent popups to elicit some action from the users. Reating value-packed content, and through targeted outreach. You can even build a sales pipeline through video nurture campaigns.

Growth PM role

It’s typically company-centric, largely focused on acquisition, and most of the planning is opinion-based and evaluated annually. The true definition of growth marketing and its benefits. For example, the first project life cycle can include the development of. Product life cycle is a series of phases from introduction, growth.

OpenView’s Blake Bartlett first invented the term “product-led growth” in 2016—and it’s proved to be the secret behind the success of End User Era companies like Atlassian, Dropbox, and Slack. In the early 2000s, Salesforce and others disrupted the old way of doing things and drove software out of the data center and into the cloud. On-prem became on-demand, and development costs plummeted. Now software shows up at work all on its own, introduced by individuals who champion its wider use. People are finding, downloading, and adopting products without any directive from their bosses.

The growth stage of a product life cycle is when the introduced product begins to be successful and its sales increase significantly. Get an overview of the growth stage through an example, discover the actions companies take during this stage, and learn how this stage can cause an impact on the marketing mix. The next phase in a product’s lifecycle is maturity, the stage at which growth slows, stabilizes, or sometimes grinds to a halt. In this stage, the market for a product is largely saturated, and new sales typically come from customers replacing their older product. Growth product management is a subsection of product management that focuses on optimizing and increasing an existing product’s value and user base. Product growth teams aim to improve business-specific metrics such as user acquisition, customer growth, and increasing revenue to help an existing product become more successful.

A new product, like an organism, needs to go through a sequence of tests to indicate its vitality in a market. AARRR is one of the most popular frameworks for growth marketing and includes acquisition, activation, retention, referral, and revenue. Your business growth ultimately lies in the revenue you secure. So, measure these metrics to check the revenue you earn and lose with every customer.

However, if your existing product cannot compete with these emerging alternatives, you will end up losing your revenue, market share and profitability. The user base of your existing product will fall as newer, more efficient technology takes its place. For example, the entry of sustainable electric vehicles has affected the sales of fossil fuel based vehicles. We enter this stage after successfully introducing the product to the target market. As a result, we need very specific marketing and advertising strategies.

Another attempt at this is the partnership with the Italian bakery, Princi. The company will be serving fresh Princi food at its new premium restaurants. Another partnership is with Macy’s, wherein Starbucks currently has presence in 49 Macy’s stores.

Product-led growth companies aren’t artificially constrained by labor-intensive lead generation, sales, and customer success processes—meaning they can stay in hyper-growth mode at scale. They can grow more efficiently as well, boasting a lower-than-average CAC payback. This new era recognizes that users have embraced fully integrated workflows powered by automation to do their jobs.

• Software products and services are a good example of the first strategy.
• A rival technology thereby leading to a switch in its adoption amongst consumers.
• If your focus is on customer-facing challenges like acquisition, onboarding, engagement, and retention, then it could make sense to have one.
• Profits are often low in the introductory stage due to the research and development costs and the marketing costs necessary to launch the product.

You’ll notice that both Coca-Cola and Pepsi have similar competitive offerings in the beverage industry, including their own brands of bottled water, juice, and sports drinks. As additional customers begin to buy the product, manufacturers must ensure that the product remains available to customers or run the risk of them buying competitors’ offerings. For example, the producers of video game systems such as Nintendo’s Wii could not keep up with consumer demand when the product was first launched. Consequently, some consumers purchased competing game systems such as Microsoft’s Xbox.