The Reds are without a league win since a 3-0 triumph against Tottenham Hotspur in August and sit 14th in the standings.
After suffering a shock 1-0 Champions League loss against Basel on Wednesday they face a potentially tough game against a reinvigorated West Bromwich Albion, winners of their last three games in all competitions, on Saturday.
"At this moment, we're having a difficult moment - we're nowhere near what we've been," Rodgers, last season's League Managers Association's manager of the season, told a news conference on Thursday.
Since taking over at Anfield in June 2012 the 41-year-old has won many plaudits for turning Liverpool into an exciting, attacking team.
Despite championing an attacking philosophy the Northern Irishman said Liverpool must get back to basics to arrest their slump.
"That's the great challenge for the players and I. We'll look at it even harder, analyse it more," he added.
"But we just need to ensure that we keep it simple and ensure that we keep to the values and ethics of this team, which is about hard work and honesty and concentrating on our performance.
"It's an exciting challenge. The first six months was difficult here and then for 18 months we were on a magic ride in terms of performance level and everything improving."
"We lost a player [Luis Suarez] but we've gone into a little bit of transition again.
"It's something that was difficult in the first few months when I got here. But the beauty of that period is that we saw the vision and the ideas that came out of the other side."
Last season's high-octane title challenge was built upon a relentless attack that scored over 100 Premier League goals as they finished second, two points behind champions Manchester City.
This season though they are a shadow of that attacking force following Suarez's departure to Barcelona for 81 million euros ($111 million) and Daniel Sturridge's injury during England duty last month.
Rodgers has challenged Mario Balotelli, a 16 million pound acquisition from AC Milan, to shoulder their goalscoring burden.
"In terms of goals he needs to improve, it is as simple as that. Not just him but any striker is judged on goals and at this moment he hasn't probably hit the numbers he would want to.
"You have to be able to score and create goals yourself as a front player and he didn't do that."
