Revenue and Shelf Space

Allstar Brands' Allround product is a 4-hour multi-symptom, over-the-counter, liquid medicine used to treat colds, coughs, and allergies. Allround is typically used at night because of the strength of the medication and because the alcohol and antihistamine helps consumers rest. When LSD&J took over as Brand Managers, our strategy was two-fold; grow the top and grow the bottom of the company. Our goal was to make the company strong and stable to ensure Allstar remains one of the top brands of medicine for years to come. Our strategy to grow the bottom was to focus on keeping our gross profit margin stable by minimizing operating cost, manufacturing cost and fixed cost. Our strategy to grow the top was to increase sales and net income. This strategy of slow and stable growth allows our foundation to remain healthy and our brand to maintain long-term success.
Period 0
When LSD&J took over as Brand Managers, Allround was advertised as a cold medicine for all demographics; young singles, young families, mature families, empty nesters, and retired. Allround's MSRP was $5.29 and the Marketing Update report listed a price increase of 2.8% compared to an inflation rate of 3.1%. Mass merchandiser sales showed the strongest growth with an increase of 9.0%. Dryup was introduced by Driscol and had a comparable formulation to Allround. Dryup was the only other multi symptom medicine to offer analgesics which is the ingredient to relieve body aches and reduce fever. Body aches was one of the most frequently reported symptoms in period 0. Allround had been compared to Besthelp, however, since Dryup was new and offered benefits that only Allround had, we changed our advertising campaign to compare Allround to Dryup and increased our advertising budget from $20M to $24M.
Max Allow (mg) Analgesic
1000 Antihist
4 Dcngst
60 Cough Supp
30 Expect
200 Alcohol
20
Allround 1000 4 60 30 0 20
Besthelp 0 4 60 0 0 0
Dryup 1000 4 60 0 0 0

The benefits were not