How to: Demote a paragraph or heading in Outline view.
Solution:
Select outline view, and select the line or paragraph and then click 'Demote' arrow button.
1) Select the 'View' menu and select 'Outline'.
2) Select the line to be demoted.
3) Click 'Demote' arrow button on the outline toolbar. (The highlighted text appears bold and italicized.)
Demote button
NOTE: Text demotes only nine levels.