Established products that have held their market share for a long time and even new products may suffer from decreased sales, a primary sign that the product is dying. Small business owners aware of their product's distress need not be discouraged. Exercising sound strategies may revive both the product and sales.
Customer Feedback
Contact existing customers or host a consumer panel to learn what they honestly think about the product. Determine what they do and don't like about the product. Ask questions to find out what they would like to see changed about the product. Make the best use of your time with the customers by creating a list of at least 30 questions about the product. Include questions about appearance, functions, size, price and how the product compares to competitor's products.
Study Competitors
Study your competitor's products, marketing and advertising to learn more about your own product. Evaluate how your products differs from theirs in size, appearance and pricing. Visit their social networking sites to learn what the public has to say about their company and products. Look for their strengths and weaknesses, and use both in your strategy to revive your dying product.
New Target Market
When you first launched your product, you defined specific markets for targeting sales efforts. Re-evaluate each of the initial smaller markets and add new markets discovered during your study of competitors and from information obtained from current customers. Determine ways to make the product more appealing to the new target market. For example: A mug that stays warm using a USB cord attached to the computer has been marketed to office workers. Change the visual design or create a series of skins to fit the mug that appeal to computer gamers.
Reposition
Re-evaluate the ways you have positioned your product based on new information gathered from customer opinion and studying your competitors. Redefine the advantages of your product and incorporate favorable statements about the product by customers. Determine what can be done to make the product more desirable. People buy more to satisfy want than need, so use emotional buying to your advantage in order to revive a dying product.
One example of this: the mug that stays warm using a USB cord attached to the computer has been marketed for its ability to keep beverages warm. Reposition for consumers with environmental concerns by noting how it is one reusable cup to go from home to work.
Joint Marketing
Define what products compliment your specific product and approach the companies with those products to engage in joint marketing strategies. Negotiate to have your product featured in their email marketing or on their website. Create a new package to feature both products as part of a kit. An example: a mug that stays warm using a USB cord attached to the computer in special packaging with a gourmet hot cocoa mix, a specialty coffee or a variety mix of herbal teas.
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