A) Executive Summary
The management team at the over-the-counter cold medicine (OCM) group of Allstar Brands is looking to utilize revenue generated by Allround to help fund new opportunities in emerging markets. Therefore, it is critical that Allround maintain its market-leading position in terms of market share, profitability, and sales in order to fund these new initiatives. While Allround is a leader in brand awareness and brand most frequently purchased, there are direct competitors to Allround. These competitors offer various products from general cold medicine offerings to single-use medicines. It is likely that these companies will continue to develop new offerings in that arena to have greater coverage across different segments. To defend against these moves, the Allround brand must expand its line, and introduce new products to the market. This will provide an additional area for growth and revenue, allow the company to use the strong brand recognition to help launch the new products, and ensure that the product lineup is meeting current consumer trends and demands. Our sales force works with the channel’s large retailers/chain stores (direct sales) or with wholesalers/retailers (indirect sales) to ensure prominent product placement. Our sales force also works to maintain relationships with the key decision makers at each of these channels. If these relationships are damaged, there is a direct impact to sales and therefore profitability. Our outlined marketing plan will work to strengthen these relationships and allow for a dialog with the channels that will be invaluable for our organization. It is evident that Allstar Brands needs a detailed marketing plan in order to positively progress in the future. Outlined below are the key areas in a marketing plan as well as suggestions for achieving our marketing objectives. B) Situation and Environment Analysis
- Allround has the highest brand awareness of any other competitor. - Allround has the highest market share based on sales revenue for OTC medicine. - Allstar is the market leader in the cold remedy market.
- Allround has a low customer retention rate compared to some other competitor brands. - Allstar’s current product offering only focuses on the cold category, which is a small portion of the total available market. - Allstar has a small sales force to promote its product. Only 14% of total marketing expenses allocated to sales force. - Product placement in stores is not optimum.
- Allround contains alcohol, which is a side effect that consumers dislike. - Allstar has only one product on the market.
- Consumer preference is leading to capsule form, and most competitors already supplying in capsule form.
- Allstar has the ability to tap into another segment of the market by offering a brand extension, such as the cough or allergy segments. -Allstar has the ability to add brand extensions that fit customer needs. -Allstar can remove the alcohol from its product line.
-Consumers perceive alcoholic content in OTC medication negatively. -Other OTC competitors are receiving higher doctor recommendations than Allround. -Allround has a lower customer retention rate compared to other competitor brands. -Allstar is only focusing on the cold category, which makes up a small portion of the available market. -Product placement in stores not optimal compared to competition. -Introduction of new products by competitors can erode Allstar’s market share.
Diversified in other market segments Product
4-hr multi symptom cold liquid
4-hr cold capsule
12-hr cold capsule
4 hr multi-symptom cold capsule
All cold medicine in capsule form Price
Lower MSRP unit price for...
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