Coping with sales decay: Case and techniques

Abstract

Multi-product manufacturers of consumer goods find for most of their items that, at some point in the marketing cycle, sales have peaked. The decline that follows will normally proceed along an approximately stable rate described by the particular decay constant applicable. Often, action to alter or even reverse declining trends may be feasible and desirable. But in order to be aware of these meeds, to know when and how strongly to proceed, one must understand the nature of decay rates, be able to analyze decay patterns, and set up effective surveillance controls. The problem or recognizing and dealing with sales decay is explored with the aid of a case.