Allstar Brands Marketing Plan

Jose Rodriguez

Marketing 640-41Prof. Harlan SpottsNovember 26th 2012

OutlineA. Company OverviewB. CompetitorsC. Marketing ObjectivesD. SWOT Analysisi. Strengthsii. Weaknesses iii. Opportunitiesiv. ThreatsE. Target MarketF. Marketing Activitiesi. 4 Ps of MarketingG. Lessons Discovered

Allstar Brands has been the dominant 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 corporations objectives are met and realized in order to generate profits. It is important to routinely adjust the corporations 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 Increase and maintain present brand awareness Increase stock price by 10% every year 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 Introduce new product in order to stay competitive within the marketThese objectives are achievable, realistic, and crucial for Allstar Brands to sustain its spot as the predominant market leader in the cold medicine business. In spite of predominantly leading in the market, Allround has some competition mainly from Driscoll Corporation, B & B health care, Ethik Incorporated and Curall Pharmaceuticals. It was crucial to consider that Allround is a shotgun drug when compared with the many specific formulations of its major competitors. Market surveys provided an effective means to keep a tab on what Allstar Brands competitors were doing in the market. Information on advertising overheads, pricing, and distribution approaches made it possible for I to be aware about the competition. SWOT AnalysisStrengths Loyal customers Strong growth 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. Weaknesses Cost of goods sold is too high Budget restrictions Small sales force because of decrease in budget Low promotion 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 baseOpportunities 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 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 OTC nasal spray would be first on the market Threats Customers looking for lower prices Inflation 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 CanadaTarget MarketSince 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. Marketing ActivitiesProduct: 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. Price: It is critical to keep price of the product at a practical level for the consumers. Because retention ration is determined by most often 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 amount 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 identified target market will allow 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 companys 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.Lessons DiscoveredAllstar Brands had a shaky start in the first period; however, it steadily grew throughout due to attention to detail of the company, market and consumer needs. Following that, the stock price rose gradually throughout periods. The 4 Ps of marketing played a notable role in determining the stock price. Reflecting the last decade, it is palpable that the companys success and short-comings fall into 4 Ps 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 as inflations occur throughout the years. In relation to promotion, more money should have been spent on advertising. I 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. I should have increased point of purchase sales, advertising budget and gave out more coupons. In relation to product, I experienced significant failure when attempting to introduce Allround into the market. As far as place is concerned, I should keep the distributors contented by increasing shelf-space and offering them good discounts in the crowded market. Through promotion, I discovered the most about the cold market. Rather than increasing advertising, I let it remain constant and increased as need through market results. I introduced Allround because there was a tight budget, which lead to reducing promoting Allround in order 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.I 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. I offered quality products and such costs are an aspect of that quality. I also lost focus of its general marketing strategy. I 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. I now have 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 I failed to properly adjust the changes it experienced. Nevertheless, I 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 introductions Allround+ and Allright, the future is quite bright. Optimistically, from our accomplishments and short-comings, Allstar Brands can enjoy good profits in the future.