301 redirect is what you want to use, there isn't any clue that you actually need to do this (other then you think you should rank higher).
This next line is important: Not ranking in google does not mean penalized.
Switching the content to another domain isn't going to do shit for you, especially since the only reason is 'its not ranking where I want it'. Starting the same site again, on a different domain, isn't going to suddenly make it a google win.
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