marketing management final presentation
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MARKETING TEAM #2E
Ankit ChoudharyAfua Gyasi
Randal KrampertApril Merscher
Joseph Nachinson
PHAMASIM FINAL PRESENTATION
Marketing Plan Review
Short Term Goals Reformulate Allround Diversify Allstar’s
product line Considerable
increase to sales force
Establish strong channel support
Long Term Goals Increase revenue &
market share Aim to increase stock
price, net income & profitability
Maintain strong brand awareness & consumer satisfaction across all products
Marketing Plan Review: Brand, Benefit & Strategy
Brand Image: products must be formulated, marketed, and sold as top tier.
Fulfill Consumers’ Value Proposition Pricing Map: Link customer satisfaction
with performance-based pricing Sales Force: Early aggressive hiring in
anticipation of product launches & retention issues
Marketing Plan Review: Product, Pricing & Promotions
Top quality products with aggressive pricing
Utilization of push/pull strategies (i.e. mass quantity discounts, trial sizes, coupons)
Pre-determined budget allocation: 40% to capsule form of cold medicine 30% to children’s cold medicine30% to liquid cold medicine
The $$ Question…..Would we adhere to this financial plan??
Summary of Performance
Overall increase of 16% for Allstar Company
Product
Name Market % Change
Allround Cold Liquid +1%
Besthelp Cold Liquid -2%
Allround Plus Multi Capsule +6%
Dryup Multi Capsule -7%
Allright Allergy +5%
Believe Allergy -4%
1 2 3 4 5 6 7 8 9 100%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Allstar CompanyShare of Mfr. Sales
Allstar Share of Mfr. Sales
Summary of Performance
Allstar stock price and net income increased every round.
The stock price rose overall by $264 or 795%.
Allstar’s net income increased by $1.734 billion or 2688%
0 1 2 3 4 5 6 7 8 9 10$0
$50
$100
$150
$200
$250
$300
$350
Allstar's Stock Price
Stock Price
0 1 2 3 4 5 6 7 8 9 10$0
$200$400$600$800
$1,000$1,200$1,400$1,600$1,800$2,000
Allstar's Cum. Net Income
Cum. NI ($M)
Period Stock Price Share of Man. Sales Cum. NI Promotion Sales Force Advertisement Average Price
1 51.21 23.6 160 9 146 21.2 5.4
2 52.84 23.7 254 10 182 26.3 5.45
3 55.03 24.1 348 12 213 28 5.69
4 70.77 26.6 461 14 310 35.4 5.84
5 89.91 27.6 603 18 335 34.5 5.94
6 121.89 31.4 765 27 440 41 5.92
7 157.99 33.8 970 28 484 41.8 6.22
8 195.61 36.3 1203 31 484 48.9 6.36
9 240.57 38.2 1472 36 537 54.4 6.6
10 302.41 39.9 1801 41 585 62.9 7.16
Phase-Wise Strategy:•Phase 1 (Pd. 1,2) - Build channel relation, increase market share•Phase 2 (Pd. 3-6) - Maintain channel relation, increase sales force, diversify•Phase 3 (Pd. 7-10) - Increase net income by proper allocation of funds in advertising & promotion, and increase prices.
Decision Summary
“Unique” Core Strategy Periods 1 & 2
Build Channel Relations:
Increase volume discounts High co-op advertisement Target specific channel
affiliates for distribution of Allstar
Plan to increase market share
Why?
“Unique” Core StrategyPeriod 3 - 6
Purchase and Use of Reports
Diversify: Launch new products in periods 3 & 5
to target a larger market Use strong channel relations to make
these launches successful
Increase Sales Force: To support launching of new products
and provide sales assistance to the channels
To top competitions sales force
Why?
“Unique” Core StrategyPeriods 7 - 10
Aggressive Pricing: Maintain “top-tier” position within each
product segment Significant increase in price with
simultaneous adjustments to promotion
Substantial Expenditure on Promotions & Advertisement: Use of excess budget allocated due to
increased net income To regain the slight decline in Allround’s
market share Accrue the long-term (Allround) and short-
term (Allright, Allround+) benefits of advertisement elasticity
Why
In Hindsight
Use of report purchasing in earlier rounds Budget allocation issues:
- promotion vs. advertising- excess emphasis on sales force- residual funds, $1M budget:$5M
revenue Where/when to be aggressive
Overall we learned a lot through continued trial and error. As we gained experience our decision
making improved, and in the end we had fun and made a lot of virtual $$!
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