What happens to a product in the decline stage of its life cycle?

The decline stage of the product life cycle is characterised by the following:

1. Sharp fall in sales — The product faces gradual displacement by new and superior products or due to changes in consumer's buying behaviour. As a result, sales fall down sharply.
2. Reduction in promotional expenditure — Promotional expenditure has to be reduced drastically to minimise loss. The emphasis shifts to efficient distribution at the lowest cost.
3. Loss of market share — The product loses its market share to newer alternatives, and many firms shift their attention to other products.
4. Strategies to revive sales — To avoid sharp decline, firms may add new features to the product, introduce economy models or attractive packaging, and adopt selective promotion to reduce distribution costs.
5. Eventual abandonment — Unless new uses of the product are found, the sales may decline rapidly and the product may soon go out of the market, eventually leading to abandonment. For example, the market for keypad mobile phones has declined drastically in our country.