Pharmasim
...This will allow Allstar to take advantage of its name by being able to charge premiums for our products. However, Allstar has to be careful and pay special attention to some of its competitors. For each of Allstar’s products there is a comparable product offered by another company that can very well be its substitute. More importantly, Allstar’s brand formulations are unique, but symptom sufferers could easily find an alternative if our primary goal deviates from keeping our returning customers satisfied. 2.2.1 Strengths • Superior Brand Awareness with our Allround and Allround+ cold remedies. • Steady stock price growth along with high consumer satisfaction. • Constant growth in sales and net income with all brands of Allstar medications. • Effective products that serve the sufferer better than its competitors. • The highest promotional allowances offered by any competitor giving customers more incentive to buy Allstar products. • The most amount of shelf space allotted for all of Allstar products. 2.2.2 Weaknesses • A high-end, high priced product line that could intimidate consumers with lower incomes. • Zero market share for those suffering from chest congestion. • Allright's fairly lower total sales revenues due to the shorter amount of time it has been on the market. • High promotional and advertising expenses that cut into net income. 2.2.3 Opportunities • The opportunity to expand Allright's sales and increase market share is a definite possibility to look to develop in the future. • Entering the chest congestion market by introducing a new product containing an expectorant. • Currently physicians are not recommending all of Allstar's products to the majority of their patients and there is room for improvement there. 2.2.4 Threats • B & B along with Ethik have also been steadily rising their manufacturers sales volumes and could pose a threat to Allstar if we have a cyclical down period that the others do not experience. • Besthelp+ is directly completing with Allround+ in the all day cold remedy market slightly beating it out in market share. • The high price of Allright may intimidate consumers from purchasing it if inflation rates don't take a bigger hike in the next year. 2.3 Competition Allstar has four other major competitors in the over the counter market each with their own brand names specially designed to target one or many of the major symptoms attributed with allergies and the common cold. These competitors are listed in order of their status in the industry as far as their financial status with net income, B &B, Ethik, Curall, and Driscol. Allstar's closest competitors that pose the greatest risk for our corporation are B & B and Ethik. Their products are similar to ours but we here at Allstar believe our products are superior to theirs while relieving many sufferers from their ailments. Allround accounts for 30.3% of the total cold market share with its closest competitor Besthelp from B & B at 25.8%. However, Allround is a more superior product because unlike Besthelp, Allround offers aid to aches, pain, and fevers as well added relief from coughing, benefits that Besthelp cannot offer. Allround + accounts for an additional 9.2% of the cold market further increasing the penetration of Allstar in the cold market. Allright, Allstar's contribution to those allergy sufferers out there is quickly gaining popularity over B & B's Believe at 35.4% and offers a dual combination of Antihistamines and Decongestants to offer the relief from allergies that sufferers really need. The market share statistics can be viewed in the figure in section 2.1 on page 3 and 4. 2.4 Product Offering The OCM Group of Allstar Brands has one product that has stood the test of time, and two others that were developed within the past 7 years. Allstar's staple product is an overwhelmingly popular four hour multi-symptom liquid which helps fight the common side effects of society's traditional ailments, aches and fevers, stuffy noses, runny noses and watery eyes and leaving you awake while the medicine does its job. With a manufacturers suggested retail price of $7.63 this is the ideal medication for quick short-term relief for the young and mature. A slightly newer product of the OCM Group of Allstar is Allround+. Allround+ is based on the already successful Allround but with a few modifications making it a more of a worry free alternative to fighting the symptoms of the common cold for up to twelve hours during the day, also leaving you without the grogginess that others will have left you feeling. And with a manufacturers suggested retail price of 6.99 Allround + is an ideal choice for those on the go looking for all day relief. As for consumers suffering from allergies, Allstar's newest addition to their OCM line will whisk away the tears of discouraged sufferers. Allright offers those with allergy symptoms fast relief with its 4-hour capsule design leaving you not worrying about your runny nose and watery eyes in a non-drowsy formula that will minimize the side effects caused by other allergy medications. 2.5 Keys to Success The Allstar Brands Corporation can attribute its number one position in the overall OTC market due to various factors including Brand Satisfaction. Allround, Allround+, and Allright account for 64.3%, 55.1%, and 54.3% respectively all rating within the top three products in their category of the greatest amount of people satisfied and we hope to only increase these numbers in the future. Thus, we hope to capitalize on this satisfaction with our customers and hope to be number one in all aspects. Another factor in Allstar's overall success in the OTC market can be attributed to its high promotional allowances for all their products. We top the competition in promotional allowances leaving consumers more incentive to purchase Allstar Brands products. However, we need to focus on further marketing our Allright brand allergy medicine. Being that it is the newest addition to our OTC line, its overall sales volume is not as strong as we would like it to be in the future. Nevertheless, Allright has been gaining popularity and should prove to be highly profitable in a larger scale as time progresses. 2.6 Critical Issues Some of the critical issues that arise in our simulation that need attention were mentioned in the SWOT analysis. One we need to increase Allright’s market share and hire more detailers to promote our products with professionals. Also it is important to lower cost of goods sold while still maintaining our first quality product. Nevertheless, Allstar has already been successful in improving in these areas. 3.0 Marketing Strategy Allstar’s overall marketing strategy is a conservative one focusing on a continued constant growth in all markets and continuing to provide the consumers with the most effective medication available for sale in over-the-counter markets. Allstar seeksto build a long lasting relationship with customers through the offering of superior cold and allergy medication. We will look to increase the number of detailers in our sales force and with additional advertising expenditures focused on promoting Allround+ and Allright. 3.1 Mission Allstar Brands Corporation is one of the leading manufacturers of packaged goods in the world. Since its founding in 1924, the company has brought or merged with a number of smaller packaged goods companies which now consists of three divisions which are graphically displayed in Exhibit 1.1 below are: Consumer Products, which handles a number of different packaged goods such as laundry detergent, shampoo, and bar soap. The International division, which distributes Allstar products on a global basis and has a large presence in the European market. And last the Pharmaceuticals Division, which is responsible for the marketing and production of both ethical and OTC medications. Ethical drugs are available through pharmacies with a physician's prescription whereas OTC remedies are widely distributed without the need for a prescription. The management of Allstar's pharmaceutical division is made up of a number of market related groups, one of these being the Over-The-Counter Cold Medicine (OCM) group. This group is primarily concerned with the marketing activities of the Allround brand and any line extensions or new product introductions, which might fall under the same category. It is this division of the Allstar Brands Corporation that we wish to continue to be the leader in the Over-The-Counter Cold Medicine market. Thus, by responding to the needs of our customers and providing a superior product, Allstar is able to play a competitive and successful role in the over the counter market and into the future. 3.2 Marketing Objectives Allstar Brands has been a successful marketer of their three over-the counter medications for the past ten years now and only plans on getting better. We have just opened a new plant increasing our production capacity by twenty million units. We are already at the top of the market when it comes to image and awareness and we can only hope to maintain these positions in the future. While reaching our financial objectives we can now allocate more funds towards increasing our market share, especially with Allright, our allergy medication. 3.3 Financial Objectives We have a steadily increasing sales revenue, net income, and stock price only adding to the size and strength of our company. Allstar prides itself on being able to keep fixed and administrative costs low and still being able to increase our sales revenue (this is exhibited in the Firm Income Graph shown below). We will hope to continue the trends shown in the graph keeping Allstar financially stable. 3.4 Target Markets Each of Allstar's three brands of over-the-counter medicine are each marketed in a unique way. Allround targets young singles, young families, mature families, and empty nesters. Our product is compared against B & B's Besthelp and promotes relief from aches, clears nasal congestion, reduced chest congestion, dries up runny noses, suppresses coughing, and minimizes side effects. Our goal is to develop a long term trusting relationship with these customers in order to establish brand loyalty and ensure future business with them. Allround+ targets all symptoms and all the demographic targets that Allround has including the elderly. It is compared against Besthelp+ and promotes relief from aches, clearing nasal congestion, drying up runny noses, suppressing coughs, and minimizing side effects. Allright's targets allergy symptoms to only young and mature families. We have found through trial and error that over marketing of our products actually has a negative effect on net income and sales so we chose to limit them and stick with the same marketing scheme throughout the simulation. It is compared with Believe and provides relief from allergies and also minimizes side effects. 3.5 Positioning Currently Allstar is the market leader in the OTC market with Allround as its major product. Along with Allround+, Allstar brands have secured nearly 40% of the cold remedy market (see Market Share graph at the beginning of the report). Even though Allround+'s relative share is just under 10%, we see an opportunity for further growth there beating out our competition. Allright is the second largest competitor out of three in the allergy market with a great potential to surpass Believe due to the more benefits that Allright has over Believe. Our name brand has come a long way in the past ten years making Allstar a highly profitable company and should continue to propel our revenues higher. The over-the-counter pharmaceutical industry is a market that seems to always provide for steady growth, however the industry is a very cyclical one so by taking advantage of strong periods Allstar should be able to stay ahead of its competition with accumulated revenues. 3.6 Strategies Allstar’s strategy for the next year will be a very conservative one. Being that we are already the industry leaders, we don’t need to extend ourselves too much in order to gain ground. We have been consistently growing over the past 10 years and we just want to continue this trend. Our budget for period eleven is $139.4 million dollars and we have no intentions of using it all. There are a few changes that could be implemented to provide future benefits. The addition of more detailers to help boost doctors and pharmacists recommendations to the consumers seems necessary. This is one of the areas that we still need some growth and by doing so we will be able to gain a larger percentage of the market share away from our competitors. Another beneficial strategy would to increase the advertising for Allround+ and Allright. In the BCG matrix shown below shows Allround slipping away from being a star and turning into a cash cow. This is understandable due to its longevity on the market. Allright seems to have the most potential out of the three of our current OTC products and with the extra advertising and detailers we can hope to expect increased revenues from that brand. As far as Allround+ is concerned its in a questionable area right now where it could be vulnerable to becoming a dog. Dropping the product from our line would not be the answer to that though because it does attribute to a decent amount of market share in the cold market. With the implementation of further advertising and more professional recommendations, within the next few years we can make a more accurate decision on the future of Allround+. Promotional allowances will remain at the tops of the industry along with some of the highest prices. We are able to change higher prices for our products due to the large percentage of brand recognition with Allround. However, Allright is definitely overvalued (pricing tradeoff graph is also shown below). We intend to keep the price of Allright stable within the next couple of years to let inflation catch up a bit, while decreasing promotional allowances as time passes. 3.7 Marketing Mix Allstar’s product marketi...