Decline phase strategy

This is the last phase of the life cycle of the product. It is characterized by a clear decline in sales and declining revenue as a result of the emergence of a number of substitutes, saturation of the market or changes in fashion. In this phase, companies limit production, distribution and sale activities. They also use seasonal sales with a significant decrease in prices.

How to extend product life?

There are several strategies that companies can use to extend the life of a product in the decline phase:

• Cost reduction: Companies can reduce costs by cutting back on production and distribution activities, as well as by using cheaper materials.
• Rebranding: Rebranding a product can help to revitalize its image and make it more attractive to consumers.
• Diversification: Diversifying a product line can help to spread out risk and maintain revenue streams.
• Repositioning: Repositioning a product can help to target new markets or customer segments.
• Creating new demand: Companies can create new demand for a product by offering new features, benefits, or services that are not offered by competitors.
• Innovation: Introducing new technology or features to the product can create new demand and extend the life of the product.
• Price strategy: Lowering the price can also increase demand and extend the product's life.
• Increase in advertising or promotion: Increase in advertising or promotion can increase the awareness of the product and attract new customers.

Ultimately, the success of these strategies will depend on the specific product and market conditions, and it's best to test different strategies before making a decision.

Proposed actions

The dominant competitive position

• maintain position
• invest company resources

Strong competitive position

• maintain position or use harvest strategy
• minimum investments from own resources

Average competitive position

• harvest strategy or a gradual withdrawal
• maintaining the minimum investment or disinvestment

Favourable competitive position

• gradual withdrawal or abandonment
• disinvestment or disposal

Weak competitive position

• abandonment,
• disposal

Decline phase strategy — recommended articles

Maturity phase strategy — Product strategy — Penetration strategy — Market maturity — Market expansion — Growth phase strategy — Prestigious price strategy — Aggressiveness strategy — Pricing strategy

References

• Cox, W. E. (1967). Product life cycles as marketing models. The Journal of Business, 40(4), 375-384.