What is the Decline Stage in PLC?
The decline stage in the product life cycle (PLC) is like the final chapter in a product’s story. At this point, sales drop significantly due to various reasons such as new technology, changing customer preferences, or strong competition. It’s the twilight phase where the product’s once-glorious journey starts to fade.
During this stage, companies face tough choices. They can try to prolong the product’s life, much like how the Harry Potter brand continually refreshed its appeal with new books and movies. Alternatively, they might change the product’s direction to cater to different markets or redesign it to make it more user-friendly.
However, sometimes it’s best to say goodbye. When a product is no longer profitable, it’s time to withdraw it and use the accumulated resources to introduce something new.
The decline stage is a natural part of a product’s life cycle, and the strategies chosen during this phase can determine whether a brand, like a phoenix, rises from the ashes or follows the path of brands like Kodak, unable to adapt to changing times.
Characteristics of Decline Stage
The decline stage of PLC is characterized by the following key features:
- Slumping Sales: During the decline stage, a product’s sales start to drop significantly.
- Rising Competition: The decline stage often sees increased competition. It’s like many players joining a game just as it’s about to end. Companies try to outdo each other in the final rounds.
- Outdated Technology: Products in decline may become outdated, like old gadgets no one wants. It’s akin to using a vintage phone when smartphones dominate the market.
- Changing Trends: Changing consumer preferences and trends can push a product into decline. Imagine trying to sell typewriters in the age of laptops.
- Fading Profit Margins: Profit margins shrink during the decline stage. It’s like a clearance sale where items are sold at a fraction of their original price to clear the stock.
Read More: Maturity Stage – Definition
Strategies For Decline Stage
Below are the six key strategies you can employ for the declining stage of the product life cycle:
Maintain at a Minimal Cost
Think of this as keeping the old car running with just essential repairs. In the decline stage, maintain your product’s presence in the market while cutting unnecessary expenses. It’s like giving your once-beloved, but now aging, car only the most critical repairs to keep it on the road a bit longer.
Eliminate Advertising and Promotions
Stop shouting about your product from the rooftops. At this stage, heavy advertising doesn’t make sense. It’s like cutting down on billboards and TV ads for a movie that’s already played in theaters for months. Instead, rely on word-of-mouth.
Prolong the Life
Imagine giving your old, but still reliable, bicycle a fresh coat of paint. In the decline stage, extend your product’s life by adding new features or updates. This can help it appeal to a new audience or boost its appeal to existing customers.
Read More: Growth Stage – Definition
Change Direction
It’s like remodeling your house into a café when fewer people dine out. Explore new markets or find alternative uses for your product. Just as restaurants pivoted to offering takeout during the pandemic, your product can find a new way to be relevant.
Redesign
If your product’s design feels like an outdated fashion, it’s time for a makeover. Redesign the product to make it simpler, more user-friendly, and in tune with the current trends. Think of it as getting a stylish haircut to look fresh again.
Build a New Proposition
When your old toy is no longer fun, it’s time to trade it for a new one. If the decline becomes inevitable, consider selling your product or its assets. Use the resources to launch a new venture with a fresh and exciting idea.
Read More: Introduction Stage – Definition
Examples of Products in Declining Stage
Let’s look at some examples of the declining stage of the product life cycle:
VCR Players
VCR players are like ancient relics from the past. They once ruled home entertainment with their ability to play videotapes. However, they faced a decline when DVD players and digital streaming arrived. Now, they’re mostly found in nostalgia shops, a reminder of simpler movie nights.
Fax Machines
Fax machines were the heroes of the office world, but they are now like forgotten superheroes. With email and scanning technology, the need for these machines declined. Nowadays, they’re more likely to gather dust in storerooms than send important messages.
Pay Phones
Pay phones were lifesavers in the pre-cell phone era. But with nearly everyone carrying a personal phone, these booths are like old storytellers in a digital age. They stand in lonely corners, waiting for someone to remember their existence.
Read More: Positioning in Marketing
Typewriters
Typewriters are the grandfathers of modern keyboards. In their heyday, they were the tool for writers and businesses. Today, they’re like museum artifacts. Writers and businesses have moved on to sleeker, quieter, and more versatile tools.
Polaroid Cameras
Polaroid cameras brought instant photos into our lives. However, with the rise of digital photography and smartphones, they’re like artists who lost their stage. They have niche enthusiasts but no longer a spotlight in everyday photography.
Cassette Tapes
Cassette tapes carried the tunes of many generations. Now, they are like echoes of the past, struggling to be heard in the age of digital music. While vinyl records made a comeback, cassette tapes are mostly forgotten relics, quietly collecting memories.
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Arti Kushmi holds a BBS (Bachelor in Business Studies) degree and shares her business and marketing knowledge through this website. While not writing she will be reading and enjoying the moment.