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• Place user reviews on your site. This should help.
• Ad David said, do not use product description which is duplicate.
• Category pages should have content on them rather than just images and links.
• Titles of webpages should be keyword focused.
• Build as many deep links as possible.
• Have an XML sitemap generator and submit the sitemap file to Google.

Ryan is spot on, without specific examples, it is difficult to tell you how to regain the lost ground. Some pointers:

1. Restore all the old webpages if possible.

2. Do Not 301 redirect old URLs

3. If the site is in a sub-folder, bring it back to root (happens a lot with Drupal if your developer is not careful)

4. Build links to the internal pages and not just the home page.

5. Look into Google Webmaster Account, specially how Google sees the site as a crawler and the "Settings".

Cheers.

It would still be suggested to have a website built on that keyword rich domain and you can link to your main website from this satellite site. It will still stand a good chance ranking high if the domain matches your main target phrase exactly.

As Wissam Dandan said, your redirection seems to be not working fine. To redirect to the WWW version, use this instead:

RewriteCond %{HTTP_HOST} ^funky-lama.com$ [NC]
RewriteRule ^(.*)$ http://www.funky-lama.com/$1 [L,R=301]

This should resolve the issue.

Rather than just focusing on keywords, why not strengthen the content with 3-4 good article or blog posts on your site and then build links to them using their topics (or variations) as anchor text? This will favorably balance link/content ratio and work in your favor.

Did you check if the same page ranks at 11 and 73 or 75? I want to bring forth the classical page vs site discussion and it is not clear if it is an internal page that showing at the lower positions or is it the same page (home page may be).

If the home page was ranking and it has dropped, try and do a site search on Google with that keyword and link from the 2nd most important page to the home page using the same anchor. Of course, if some other page is ranking, this won't be a ranking penalty but some other thing at play which has to do with your webpage.

Steve,

Give me an example and I will be happily accepting what you say here. That never happens. Even in most of the polluted niches like Web Design or online pills, backlink anchor text semantics seem to be working pretty fine. There are so many factors at play that it is easy to confuse it with semnatics of anchor text, but really doesn't works that way.