Product decline is a common and inevitable part of any retail business. This is nothing to panic about because it is normal and expected. What you should be concerned about is how equipped your company is to handle such situations and decide what to do next. If there is the possibility of bringing the sales of the product back up, then here are a few suggestions on how to go about achieving it;
Look at What Went Wrong
Before you start working on strategies to bring back the product, you must look into the factors which contributed towards its decline in the first place. There could be one or several reasons as to why the product sales reduced over a given period of time. The product might have been in the decline stage of its life cycle, demand conditions such as customer preferences may have changed, your competitiveness in the industry may have become weaker or product-related variables such as price n duality may have changed. Dig deep until you find the root causes so that you can start finding solutions for the main problems.
Explore All Possible Options
You are at a crucial stage when attempting to make a decision about a declining product because the actions subsequent to your decision can affect the other products sold by the company as well. When deciding whether or not you should invest company resources to resurrect a dying product, it is important to look at the financial projections of how much revenue the product is expected to yield if it remains in the market. It might be less expensive to let the product sales decline and develop a new one in its place. Is it profitable to put in the money, time, manpower and energy into bringing back the product? What will the market reaction be for the product when it is remarketed? Will demand pick up? If so, how long will it take? These are all questions you should have answers to before you proceed.
Revise Your Marketing Strategy
When restoring a fallen product to its previous glory, its marketing strategy plays a most significant part. Look at what marketing tools you would like to employ to relaunch the product in the market. It may be a good idea to employ a rigorous advertising campaign to kick-start the marketing process. Hire a reputed advertising company who will be able to conduct sound market research and create effective advertisements for the product.
Work with the advertising company to come up with innovative ideas to capture the attention of consumers while informing them about the revamped product.
Resort to Rebranding the Product
You may have to look at rebranding the product to give it a new look and feel. This will contribute towards the creation of a positive attitude towards it in the minds of the customers if the brand image was previously tarnished. Rebranding the product can also lead to an easier relaunch of the product.