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Question
Berrylicious is a very famous wafer brand among children, currently in its growth stage. Which of the following statements is/are correct about this stage?
- Competition is virtually absent.
- Marginal producers are forced to go out of the market.
- Promotional expenditure remains high.
- Sales may decline rapidly.
Options
Only 2
Only 2 and 3
Only 1 and 4
Only 1
Only 3
MCQ
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Solution
Only 3
Explanation:
Sales increase significantly during the growth stage of the Product Life Cycle (PLC), as the product acquires market acceptability. Companies must sustain high promotional expenditures in order to capitalize on rising demand and create strong brand preference over new competitors.
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