Four Stages of Growth

Topics: Marketing, Brand, Brand management Pages: 2 (543 words) Published: October 30, 2011
Stage One – Start-up/Creation

There is a lot of planning that goes into starting any business. Stage one is the growing phase of the business during which the business plans and strategies are finally executed and the business organization comes into existence. This is the stage where the business is not generating revenue but trying to establish itself in the market and attract a stable set of investors and customers. This is the stage where the business has to invest a lot of resources in creating the basic infrastructure and then marketing and advertising itself in the market. This is the phase during which innovative ideas are encouraged, in order to establish a USP (Unique Selling Proposition) for the company. It is a difficult task to have a smooth sailing business, without any struggle right from the beginning since the early stage of business setup involves higher risks. The income in the first stages is always lesser than the investments and hence initial stage is marked by lower profit margins for the business.

Stage Two – Growth

Once the business passes the nascent phase, it begins to find their core customers. Stage two or the growth phase of the business is when the business establishes its niche in the market. This is the phase where the business owners start to establish their brand identity and generate brand loyalty within their customer base using sound marketing practices. Although the focus of this stage is to maintain the core customer group and build trust and goodwill amongst the customers. This stage is marked by a rise in consumer demand and a consequent requirement of increased inputs in terms of production, manufacturing, and general operations to keep up with the rising sales and continue growth. The growth phase is thus marked by increased sales, rise in profit margins and thus establishment of the brand name in the market.

Stage Three – Maturity

Stage three is the stage where the business reaches a certain maturity...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • The Four Stages of Growth a Business Might Experience: Characteristics of Essay
  • Four stages of marriage relationships Essay
  • Rostow's Stages of Economic Growth Essay
  • Essay on Four stages of Leadership
  • Essay on Growth Stages of a Rice Plant
  • Stages of Growth and Development of Humans Essay
  • Alfarabi and Aristotle: the Four Causes and the Four Stages of the Doc Essay
  • Essay on The Piagetain’s Model: Four Stages of Development

Become a StudyMode Member

Sign Up - It's Free