The Black Soap Shampoo : The Decline Stage Of The Product Life Cycle

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The Moisturizing Black Soap Shampoo is currently placed in the Decline stage of the product life cycle. This stage is always characterized by a shrinking market, something that is observed with the shampoo ("Product Life Cycle Stages", 2017). The product has experienced a consistent decline in the number of sales going by the number of units sold in each quarter. This is something that has led to a decrease in the amount of revenue collected and a loss of market share from 3.8% in 2015 to 2.8% in 2016 (PRODUCT REPORT FOR ALIKAY NATURALS MOISTURIZING BLACK SOAP SHAMPOO, 2017). All these have occurred in a steady manner that gives indication of the general decline of the shampoo. From the survey conducted on the customers of the shampoo,…show more content…
The team should do this by seeking to know the progress of their competitors. The trend of the competitors would help to understand the markets they are serving, the existing gaps, the planned products and pricing strategies. At this stage in the product life cycle, the company might consider to engage in expansion. Before making the decision to expand, it is critical to ensure that the company gets into something that will differentiate it from its competitors. Looking at competitors will help the team know some of the strategies they used when faced with similar situation and even avoid making mistakes. Any new product launched should build on what the previous product did better and bring about an improvement.
The third question Rochelle should pose to the team is: What types of customers have we been serving? This question would be answered through a market research that would be aimed at defining the existing customers in detail. The team by answering this question will then be able to diversify appropriately. They would then identify the groups that have not been covered by their products and come up with a product line that is suitable for them. Diversification will ensure that the company has security and decline in one product line is cushioned by the sales of other products.
One major

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