marketing management final presentation

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 $$!