Product Lifecycle: Decline Phase
Deliverable #1: Assessment of focus areas for a declining Product
The decline phase of a product lifecycle is typically of a decrease in sales and market share, often due to changing consumer habits, technology advancements, or increased competition. Recognising the signs of decline early allows you to take proactive measures.
1. Evaluate Product Performance
2. Product Revitalisation
3. Diversify
4. Monitor Competitors
Strategic Recommendations as the overall output
1. Evaluate Product Performance
Analysis of sales data, market trends, and customer feedback to understand the reasons behind the decline.
Identify if the decline is temporary or indicative of a long-term trend.
2. Product Revitalisation
Explore opportunities for product improvements to reignite users.
Innovate by adding new features or enhancing the product's value proposition.
3. Diversify
Consider expanding product lines or introducing complementary products to attract new customers.
Leverage existing brand equity to launch new offerings that align with current market trends.
4. Monitor Competitors
Keep an eye on competitor actions and market responses, and adjust strategies accordingly.
Learn from competitors who have successfully navigated their own product declines.
Deliverable #2: Define Strategies for Actionable Change
Having assessed the factors driving a reduction in Product performance, we work with you to identify and select strategies to either revitalise or decommision the Product.
1. Cost Reduction
2. Market Segmentation
3. Promotional Strategies
4. Exit Strategy Definition
1. Cost Reduction
Streamline operations to reduce costs, without compromising quality.
Consider discontinuing unprofitable variants or features.
2. Market Segmentation
Focus on niche markets that may still have high demand.
Tailor marketing to specific customer segments that are less affected.
3. Promotional Strategies
Implement aggressive marketing campaigns to reduce inventory.
Offer discounts, bundles, or loyalty programs to encourage purchases.
4. Exit Strategy Definition
If the product is no longer viable, develop a phased exit strategy to minimise losses.
Communicate transparently with stakeholders about the decision to discontinue the product.