8 Strategic Decisions When Sales Are Declining
Posted: Tue Jan 21, 2025 10:50 am
Develop a sales strategy tailored to each client
This should be the number one task for sales managers: to find an individual approach to literally every client. In retail, the emphasis should be on calculating sales volumes for each brand, taking into account the potential for growth of these volumes.
Of course, it is necessary to calculate the amount of resources required to promote a particular product position. In the wholesale sector, the number of points of sale, sales volumes bahrain mobile phone numbers database (for each trade facility) and concern for supporting large buyers by all possible means are of primary importance.
Lack of stock in warehouses
For example: the 2015 crisis led to a decline in sales. As a result, promoting a specific brand became more difficult, i.e. more expensive. And the manufacturer and distributors did not want to take on additional expenses, they considered that the demand for the product was already quite sufficient.
The store did not receive the expected profit from this brand, and it was decided to replace it with another one. Of course, sales were low at first, but suppliers took on part of the promotion costs (after all, it was in their interests). They participated in the promotions, in staff training, prepared the necessary promotional materials, partially paid for advertising, etc. After a season, the profit from the sale of the new brand was twice as high as the previous brand, which the store had removed from its assortment at the time.
Bet on "stars" and "cash cows"
We are talking about a theory once proposed by the Boston Consulting Group. According to their vision, the promotion of any product on the market includes 4 stages:
appearance on the market ("problem child");
growth in popularity ("star");
maturity stage ("cash cow");
decline in popularity ("dog").
Most often, companies put "problem children" on the growing market, because with sufficient investment they show high growth rates even with a low share in total sales. But when there is a decrease in sales growth rates, it is wiser to focus on "stars" and "cash cows" (with them, the market coverage is wider, and sales volume indicators are more stable).
If there is no special means to promote "difficult children", then it is better not to put such products on the market. As for the so-called "dog" products, their profitability indicators are the lowest. In fact, they are just ballast, dragging the company to the bottom.
This should be the number one task for sales managers: to find an individual approach to literally every client. In retail, the emphasis should be on calculating sales volumes for each brand, taking into account the potential for growth of these volumes.
Of course, it is necessary to calculate the amount of resources required to promote a particular product position. In the wholesale sector, the number of points of sale, sales volumes bahrain mobile phone numbers database (for each trade facility) and concern for supporting large buyers by all possible means are of primary importance.
Lack of stock in warehouses
For example: the 2015 crisis led to a decline in sales. As a result, promoting a specific brand became more difficult, i.e. more expensive. And the manufacturer and distributors did not want to take on additional expenses, they considered that the demand for the product was already quite sufficient.
The store did not receive the expected profit from this brand, and it was decided to replace it with another one. Of course, sales were low at first, but suppliers took on part of the promotion costs (after all, it was in their interests). They participated in the promotions, in staff training, prepared the necessary promotional materials, partially paid for advertising, etc. After a season, the profit from the sale of the new brand was twice as high as the previous brand, which the store had removed from its assortment at the time.
Bet on "stars" and "cash cows"
We are talking about a theory once proposed by the Boston Consulting Group. According to their vision, the promotion of any product on the market includes 4 stages:
appearance on the market ("problem child");
growth in popularity ("star");
maturity stage ("cash cow");
decline in popularity ("dog").
Most often, companies put "problem children" on the growing market, because with sufficient investment they show high growth rates even with a low share in total sales. But when there is a decrease in sales growth rates, it is wiser to focus on "stars" and "cash cows" (with them, the market coverage is wider, and sales volume indicators are more stable).
If there is no special means to promote "difficult children", then it is better not to put such products on the market. As for the so-called "dog" products, their profitability indicators are the lowest. In fact, they are just ballast, dragging the company to the bottom.