1.Introduction Stage:The main purpose of this stage is to introduce the new product to the market. The company must be aware of the tremendous amount of time and money which will be spent at this stage in order to attract consumers, grab their attention to this new product, and make them try it.
In this stage, there are several strategies for the company to follow:•The company must well advertise their new product and obtain a trademark for it so customers will be aware about this product. Pizza Hut had spread many of announcements about their new product "Pasta Hut". They alerted the customers by several ways:Pizza Hut's web site was redesigned and many attractive pictures of the new pasta were added in their homepage. They also created a new URL to market the Tuscani Pasta. In addition, they gave out coupons and they advertized the new product everywhere in the newspaper, magazines, and TV.
•At this stage, sale growth might be slow. So, it is recommended to keep the price relatively high in order to overcome the high costs associated with introducing the new product. Therefore, the revenue may be low, too.
•At the beginning, the distribution must be limited until people become more familiar with the product. Pasta Hut has followed this pattern by introducing this new product in main cities that are known with their multi-cultural population.
•A company should also start first with one or few products in order to test the customer's reaction. As in Pasta Hut, they produced only two types: creamy Chicken Alfredo and Meaty Marinara.
2.Growth Stage:In the growth stage, the highest rate of sales for the company is maintained. The raise in the number of customers who are aware...