Allstar Brands Marketing Plan Marketing Essay
Since 1924, Allstar Brands Pharmaceuticals has been the leader in over-the-counter medicine with products such as Allright and Allround which offers the most effective and best selling cold medicines in the present market. Allstar Brands, as a renowned leader in the pharmaceutical industry seeks to bring customers multi symptom medicines, which deliver exceptional product value and quality. In order to maintain the level of success of Allstar Brands, it is essential to make certain that the corporation's objectives are met and realized in order to generate profits. It is important to routinely adjust the corporation's goals to meet the market needs. After a thorough analysis of the present market situation at this company, it has been determined that the following objectives should be considered. These objectives should be realized so as that Allstar Brands can continue to maintain its sales and market share. The objectives are:
Increase Allround cold medicine retention ratio 10% every year for a period of three years from present thirty six percent
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Increase and maintain present brand awareness
Increase and maintain brand perception and customer satisfaction for cold medicines by at least five percent in the next two years.
Increase shelf space for Allround cold medicine across all channels for the next two years
The afro mentioned objectives are achievable, realistic, and crucial for Allstar Brands Pharmaceuticals to sustain its position as the market leader in the cold medicine business.
Established brand name and product through success of its other products
Allround is the most efficient medicine offering multi-symptom relief
Allround has the utmost percentage of brand awareness for several years and continues to enjoy strong brand awareness in a market that has numerous companies and plenty different products.
Cost of goods sold is too high
Small sales force because of decrease in budget
Low advertising because of spending budget for both Allround and Allright products
long-term effects over failed penetration of cough industry
Long-term effect of misallocation of funds
Lack of constant growth in client base
Technology facilitating business to be more e-commerce based. Many individuals have access to computers
Introduction of new products in the future
Allstar brands in position to lead in cold medicines part of industry
Cough market does not have a leading corporation. Although experience with Allround cold medicine, Allstar Brands can re-enter the market with a stronger base and better understanding
OTC nasal spray would be first on the market
Economic growth in the United States allowing more individuals to pay for costly quality products such as those of Allstar Brands
Opportunity to enter international markets
Customers looking for lower prices
Besthelp and Dryup in position to take away consumers and shares of sales with strong products in the same industry as Allstar Brands
Crowded industry with numerous companies and new products
Technology could change the market with new products that are been created easier and quicker
High gas prices are lowering prospective consumers' spendable income
Class action suits have been filed to let free trade that would in turn bring in less costly imports from Canada
Since Allstar Brands provides over-the-counter medicine, it targets customers who suffer from common health problems. The most favorable way to segment the client base of Allstar Brands would be by these two significant classes: demographics (mature families, young families, retired, and so on) and illness (cough, cold, allergy, and so forth). This company invests in marketing research to learn about the ever transforming trends and preference of the market. The information that Allstar Brands gathers from this study should be then used to make the proper decisions to satisfy each and every particular category of consumer.
Product: reformulate according to consumer demands whilst maintain brand reliability; Allstar Brands should maintain its existing lucrative products so that there is a prospect to put funds into developing new products. Products that have proved to be unsuccessful in the market should be removed from production, thus, large amounts of disposable income. For products that have been successful in the market, promotion, advertising budget and sales force should not be cut. While introducing a new product, Allstar Brands' sales force should be raised in proportion to the designed volume of the new products.
Promotion: Develop marketing tactic for allocating resources; it is essential to use promotion and advertising. It is important to keep prime advertising high whilst keeping reminder advertising to a minimum. Comparative and beneficiary advertising will fall in the middle. In order to keep these numbers strong, it is crucial to have more funds allocated to the overall advertising budget for Allright product. Since the budget allocation over the last three years has increased, this has made it possible to designate more money towards the overall advertising. Strong advertising will increase overall products' performance and enable the company to advertise more efficiency in the future. It is also important to define the target market and thus, conduct more research. Because this product has been on the market, it has not been possible to define a strong market. But, younger individuals have shown interest in this product. A well defined target market will allow the next ream to advertise and promote more and will have the first steps considered when attempting to increase the brand awareness. With regard to promotion, point of purchase will be enhanced. This is the end result of younger individuals revealing more interest in a 12 hour multi symptom medicine. Younger individuals are more likely to obtain point of purchase because they have 'on the go' way of living and the first thing they often see is normally what they buy.
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Price: It is critical to keep price of the product at a practical level for the consumers. Because retention ration is determined by most frequently purchased divided by brand trials, it is evident that it is important to increase the amount of individuals who purchase the product more than the number of trials. This can be accomplished by good pricing and advertising, and also by recognizing the target markets more and thus, promote accordingly. The advertising, pricing, and defined target market will enable the next team to increase the customer base.
Place: Preserve loyalty of the most profitable distribution channel.
In order to increase customer satisfaction of all company's products by sixty percent, first of all, the correct information should be gathered on the products featured and benefit prospect of potential and current customers. Such information will assist the management of Allstar brands to make conclusions for developing a new product image, benefits and features to meet the current demand.
From the above graph, it is evident that Allstar Brands had a good start in the first period; however, it steadily fell until the eight period. Following that, the price rose in the final and last two periods. The 4 P's of marketing played a notable role in determining the stock price.
Reflecting the last decade, it is palpable that the company's success and short-comings fall into 4 P's of marketing: product, promotion, price, and places. With regard to price, it is observable that the price should have been increased all through the simulation. It is important to raise the prices in order to turn a profit.
The graph below reveals the price for Allround weighed against its primary competition, Dryup.
In relation to promotion, more money should have been spent on advertising. The team promoted the product, but it was not enough, though a lot can be pointed to the low budget because of pricing issues and overstaffed sales force. The team should have increased point of purchase sales, advertising budget and gave out more coupons. In relation to product, the team experienced significant failure when attempting to introduce Allround into the market. As far as place is concerned, the team should keep the distributors contented by increasing shelf-space and offering them good discounts in the crowded market.
Through promotion, the team discovered the most about the cold market. Rather than increasing advertising, the team let it remain the same. The team introduced Allround and because there was a tight budget, the team took away promoting Allround to finance the promotion for the new product. However, this was not a good idea because it took away the much needed advertising for Allround and this obviously affected the sales.
The team learned some significant lessons when it came to distribution. Because of misuse of finances, the sales force was significantly cut. This was certainly not a good move for the distribution to the direct and indirect channels and sales. The result of this move was loss of shelf space and market share.
In general, the largest mistake was focusing on ways to increase income by cutting back costs rather than attempting to raise revenue. In the market, the cost of goods sold was the highest. But, the team offered quality products and such costs are an aspect of that quality. The team also lost focus of its general marketing strategy. The team failed to do enough research about the market to recognize the best distribution channels, target marker, appropriate discounts and solid pricing, and what kind of new products were required. But the team has a new appreciation for how this problem can affect the whole marketing strategy for a long period. Any kind of market is a market of change, and the team failed to properly adjust the changes it experienced. Nevertheless, the team realized that with its new marketing goals and present position in the market, the activities embarked on will allow these objectives to be fulfilled. With the rebound of Allround and introduction of Allright, the future is quite bright.
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