Introduction stage

The introduction stage begins when the new product is primary launched. Introduction takes time, and sales growth is apt to be slow. In this particular stage, as compared to other stages, profits are low or negative because of the reason of the low sales and great distribution and promotion expenses. Much money is required to attract distributors and build their inventories. Promotion spending is relatively great to inform consumers of the new product and get them to attempt it. Because the market is not usually ready for product refinements at this stage, the company and its some competitors produce basic versions of the product. These firms focus on their selling on those buyers who are the readiest to buy.

A company, especially the market pioneer, have to choose a launch strategy that is consistent along the intended product positioning. It would realize that the primary strategy is only the first step in a grander marketing plan for the product's complete life cycle. If the pioneer selected its launch strategy to make a "killing," it shall be sacrificing long-run revenue for the sake of short-run gain. Since the pioneer moves by later stages of the life cycle, it shall have to continuously formulate, promotion, new pricing and other marketing strategies. It contains the best chance of building and receiving market leadership if it plays its cards accurately from the start.