The characteristics of a growing and a mature product market Essay

The characteristics of a growing and a mature product market - Essay Example Under this phase, there are rapidly rising sales volume and profit, and the overall-growth is at a very fast-paced manner (Kotler, 2002, p.173). For example, consumer electronic markets, particularly entertainment devices, are in the growing product market. Portable DVD player is the hottest, trending category and â€Å"derives its popularity from its portability and compact size† (Atico International, n.d.). It also constitutes an annual growth rate of 25% in the hi-fi product market together with turntable, amplifier and digital radio tuner, MP3 players, four-unit speaker and wi-fi capability. During this stage, the average production cost of portable DVD player is being assessed as to what the company could sustain. Samsung Electronics is one of the prominent manufacturers of consumer electronic devices, but because it is not the first-mover, it needs to do extensive research to enhance the quality and features of its product. It has launched the world’s smallest por table DVD with a tiniest DVD format, quality screen format and a good battery life. In addition, the high production cost during the introduction stage is initially recovered in the growth phase because of scale economies or increased output. Customers at this stage are early adopters and old-users because the former will become aware of product benefits and participate while the latter will increase their consumption level or usage rate. This phase is very attractive to new entrants because profitability and market share are certain; thus, the business must expect a growing competition. A higher sales volume and profits that Samsung have gained from its portable DVD players make competitors such as Sony, Philips and LG to emerge. For the product to compete and obtain superior sales rate and market share, its product features should be unique and different, and the cost of promotion should be increased. Strategies. Sales and marketing strategies should be strengthened by providing t he market segment with the necessary information about the product. The product quality, feature, style, and design should be improved to increase the usage rate and brand identity. It is also an advantage if the business will involve in new market segments such as first-time buyers or non-users to widen its distribution coverage as demand increases. Furthermore, the original price should be maintained because the demand is rising, and it should use an informative promotion to attract a wide market audience. 1.2 Mature Product Market The mature product market is the third product life cycle phase. During this level, the rate of sales and profits is high, but starting to level-off because the overall growth is at a very slow manner (Kotler, 2002, p.174). For instance, Coca-Cola and Pepsi-Cola are the two well-known competitors in carbonated soft drinks (CSDs) market wherein the former is the leading sales and market shareholder in the early years of competition. However, in the most recent soft-drink sales, Pepsi has total sales of $43.23 billion while Coca-Cola has $30.99 billion (Dlugosch, 2010). The