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Group 2
Mission Statement
Allright is a leading Pharmaceutical company founded in
providing a quality product at a competitive value. Our
success is attributed to an ongoing commitment from our
management team and support from our stockholders.
Providing over ten years of relief to our customers has
been our highest priority. Our market shares have
increased annually and research has yielded a new
product to introduce every 4 years. Allright continues to
provide promotional items for its retailers and clientele
alike to help reduce costs and bring in new customers.
Looking toward the future, Allright will continue its
success with a well balanced marketing plan and remain
an industry benchmark for years to come.
Marketing Objectives
New Product
With respect to the Product Life Cycle, a
new product should be introduced within
the next 2-4 years depending on how
things are going with Allround+ and Allright
We can put money form Allround which is a
star in the BCG Matrix and into the new
product and hopefully get a cash cow or
another star to come out of it.
Increase Price
The prices of Allround, Allstar. And Allround+
should all be increased annually, in correlation to
inflation
Inflation should not outweigh the price increase for
Allround at all because it is still our leading product
and has the highest percentage of most frequently
purchased along with having the most symptom relief
The prices for Allround+ and Allright should not be
outweighed by inflation either, but be more careful in
how much the prices are raised each year, because
these products are still fairly new and until the Most
frequently purchased percentage is at least 40% the
price should stay closer to inflation increase.
SWOT Analysis
Strengths
Allstar brands well-known brand name
has brand awareness of 76.1% and Allround +
has an awareness of 57.3%.
15.9% purchased Allround, 5.8% purchased
Allround +, and 5.7% purchased Allright
Strengths Cont.
Promotions overall, especially trial sizes and coupons
Weaknesses
Allstars pricing
Doing well in symptom relief and have the highest Retail and
Manufacturer sales
Highest promotional allowance and cost of good sold
Gross margin is lower than both B&B and Ethik.
Allround has 0.4% participating in co-op ads & 1.3% point of purchase
Allround + has 0.5% in co-op ads & 3.1% in point of purchase
Allright has 0.8% in co-op ads & 4.2% in point of purchase
Higher percentages result when we put in more money
Weaknesses Cont.
Opportunities
Consumer demand to relieve symptoms
Opportunities Cont.
Industry growth rate is at 10.1%
Health is a big trend
No invention is underway that would eliminate the need for OCM
Allround, Allround +, and Allright have 16.7%, 5.6% and 5.4%
respectively
Allround is a star in the BCG Matrix, but Allround + and Allright
are question marks
Threats
Ethik is a threat to Allstar
Threats Cont.
Defogg is a threat to Allright
Have the same ingredients in the same form,
and the same symptom relief
Defogg has a higher price than Allright, but
they have better brand awareness and a
higher conversion ratio.
Marketing Activities
Increase Price
In order for Allright to recover profits lost to
inflation, the prices of its products must be
reevaluated annually
Lessons Learned
Stock Price
The most obvious way to tell how well the
company is doing is the change in the
stock price
Poor decisions will cause the stock price
to drop, and as well as the opposite
Poor decisions made by us early allowed
us to ratify the situation and make our
stock price climb out of the basement
Increased Price
Increased the price, but not even enough to deal with
inflation so ultimately served no purpose
Year Three
Decided not to start a new product
This was not necessarily the incorrect thing to do, but
it did contribute to the large drop in our stock price
over the year
Starting a new product takes a lot of money and we
didnt think it would be beneficial to the company if we
spent money we didnt know weather or not we would
make back quickly.
Year Four
Finally introduced Allround+
Took money from budget of Allround in order to
increase the promotion and advertising of Allround+
Year Five
Forced to make budget cuts
Took money away from the advertising budget of Allround but not
Allround+ because it was still a new product.
Decreased our sales force as little as possible
If we had suffered a similar loss the following year, the cuts
would have been a big problem.
Increased Price
Decided that an increase of between 30 and 40 cents each year
would keep us ahead of inflation and increase our budget from
year to year