Allround Porter's Five Forces Of The Sales Force
Sales Force
In the beginning of the simulation, Allround started with 135 members of the sale force. A well equip and knowledgeable sales force can also help a company deliver more value to the customer (Winer & Dhar, 2016). The decision to add or contract the sale force was based on the simulation reports and the competitor’s sale force. From the beginning of the simulation, we came to a realization that sale force plays a pivotal part of the simulation, having the right amount of sale person per category is necessary for the growth of Allround. We focus in these four main group the direct sales force sells directly to retail channels. While wholesalers distribute to retailers who do not buy direct from manufacturers. Merchandisers focus …show more content…
Furthermore, by period 8, total advertising spending was up $28.2 million while promotional spending increased $10.6 million. Additionally, we introduced Allright in the fifth period because there was an increasing need for an allergy sector, which was lacking before. Advertising for Allright focused primarily on relieving allergy symptoms since this was something not promoted for Allround or Allround+. Not to mention, we believed that being the first to introduce this new product would have a significant impact on the company. The line extension was not generating income despite increased investments in advertising and promotions. Therefore, we decided to remove Allright in period 6 because we felt that it was not a valuable line extension to the Allstar brands and it would do more harm than good in the long …show more content…
Our prices were set at a value for the consumer and were still considered a value once we increased our prices to compete equally with our competitors. We experimented with different pricing options to find the best competitive pricing strategy for both Allround and Allround+. However, per our analysis of Allstar brands for period 8, margins indicated a low-cost pricing policy as per unit margin which was significantly below industry norms. We maintained a balance level for coupons for both Allround and Allround+ since we had such a huge response to the coupons offered. In period 8, our prices increased an average of 3.8% compared to an inflation rate of 4.9%. Moreover, our beginning stock price was $38.95 and our ending stock price was
In the beginning of the simulation, Allround started with 135 members of the sale force. A well equip and knowledgeable sales force can also help a company deliver more value to the customer (Winer & Dhar, 2016). The decision to add or contract the sale force was based on the simulation reports and the competitor’s sale force. From the beginning of the simulation, we came to a realization that sale force plays a pivotal part of the simulation, having the right amount of sale person per category is necessary for the growth of Allround. We focus in these four main group the direct sales force sells directly to retail channels. While wholesalers distribute to retailers who do not buy direct from manufacturers. Merchandisers focus …show more content…
Furthermore, by period 8, total advertising spending was up $28.2 million while promotional spending increased $10.6 million. Additionally, we introduced Allright in the fifth period because there was an increasing need for an allergy sector, which was lacking before. Advertising for Allright focused primarily on relieving allergy symptoms since this was something not promoted for Allround or Allround+. Not to mention, we believed that being the first to introduce this new product would have a significant impact on the company. The line extension was not generating income despite increased investments in advertising and promotions. Therefore, we decided to remove Allright in period 6 because we felt that it was not a valuable line extension to the Allstar brands and it would do more harm than good in the long …show more content…
Our prices were set at a value for the consumer and were still considered a value once we increased our prices to compete equally with our competitors. We experimented with different pricing options to find the best competitive pricing strategy for both Allround and Allround+. However, per our analysis of Allstar brands for period 8, margins indicated a low-cost pricing policy as per unit margin which was significantly below industry norms. We maintained a balance level for coupons for both Allround and Allround+ since we had such a huge response to the coupons offered. In period 8, our prices increased an average of 3.8% compared to an inflation rate of 4.9%. Moreover, our beginning stock price was $38.95 and our ending stock price was