February 13, 2013
Identification / Description of the Problem:
Allstar Brands' over-the-counter cold and allergy remedy Allround will continue to be the market leader among OTC cold medicines and continue to increase its stock price over the next decade in order to remain not only competitive, but the premier stock choice among competitors in the OTC cold and allergy remedy market. To further grow the Allround product it is essential to build upon the current strengths of the brand, but also seek additional areas for opportunity and growth. These goals will be accomplished by evaluating competitors entering the OTC cold and allergy remedy market and through careful planning and execution to enhance our current product to meet the desires and needs of consumers.
Allstar Brands' Allround product holds a strong position in the over-the-counter cold and allergy remedy market by being the market share leader, but there is no guarantee this trend will continue. Allround recognizes the need to continue to diversify and reformulate its current product line in order to remain competitive in light of an influx of competition. Allround competes in one of four product categories in the OTC market with no emphasis in the cough, allergy, or nasal categories. We will be better enabled to meet the desires and needs wanted most by consumers by enhancing the current Allround product line.
Allstar Brands' Allround product has been a profitable brand with manufacturer sales of over $355 million in its most recent period. To further increase sales it is crucial to ensure the Allround brand is being sought by all consumers in the OTC cold and allergy remedy market. Recent surveys show the Allround brand did not receive the best shelf space placement and this is a great concern to the future of the brand. It is important Allround reallocates its resources appropriately to maximize the efficiency of our channels of distribution in order to promote our brand to its fullest potential.
Allround's brand effectiveness and high recognition have allowed it to be among the price leaders in the OTC cold and allergy remedy market. This current trend is a great concern to the management team at the OCM group of Allstar Brands. In order to remain competitive Allround must closely monitor all pricing aspects associated with manufacturing and selling the brand. To ensure Allround can maintain a price leadership role in the market it must continually adjust its pricing tactics to better suit its consumers in periods of growth and decline. Allround's success depends on the consumers who buy its product. To ensure consumers are purchasing our product Allround must offer the greatest value. By promoting our product to the appropriate demographics we can develop more sales and grow our customer base. Allround brand recognizes the need to promote its product through all types of mediums including coupons, point-of-purchase vehicles, and trial-size packages in order to maintain customer loyalty. If Allstar Brands is able to understand its customers on a more intimate basis then it can better provide for desires and needs sought by those purchasing medicine in the OTC cold and allergy remedy market.
The following is a situational analysis of all pertinent aspects of the current state of the market and of the Allround product. Using the “5 Cs” we have developed an overview of the current situation and hope to present it in a clear and concise manner. This covers the current external factors, major competitor factors, projected customer’s information, fellow distributor’s and retailer’s factors, and current company outlook. -Context: External factors
Availability of Credit
Market PotentialPrice Inflation
Only a 2.8% previous price increase as compared to a 3.1% inflation rate.
This inflation can be...