Mission Statement:

Allstar Pharmaceuticals is dedicated to promoting healthy lifestyles for our customers through quality products. We are equally focused on creating a positive work environment and maximizing shareholder value.

S.W.O.T. Analysis

A. Strengths 1.Customer Satisfaction

If the customer is not satisfied with our products, then we are unsatisfied as well.

Customer satisfaction stems primarily from the quality and effectiveness of our products.

Our Customer Satisfaction has risen steadily over the last 10 periods.

2. R&D Department Focuses on developing new products related to consumer

needs and demands. Introduces quality products with low side effects.

S.W.O.T Analysis

A. Strengths3. Brand Awareness

Allstar has the highest brand awareness in the Pharmaceuticals market .

Allows us to confidently introduce a new product into the market.

4. Quality products The quality of our products is a strong factor in

our customer satisfaction. We strive in making high quality products with

limited side effects.

S.W.O.T Analysis

A. Strengths5. Ever-Present Market

People will always be in need of a cold medicine, especially in the winter months.

This is a strong potential for growth if products are marketed and targeted accordingly.

S.W.O.T Analysis

B. Weaknesses1. Low Marketing Budget

We find ourselves with a limited budget.We should not sacrifice funds to areas which we

know need specific amounts of capital.2. High Cost of Goods Sold

Our Low marketing budget is partly linked to the high costs of goods sold.

We invest greatly in advertising in order to raise our consumer brand awareness.

S.W.O.T Analysis

B. Weaknesses3. Allowances are too high

Another reason for high costs is that our distributor’s allowances are high.

Very beneficial to have our products at the consumer’s eyelevel in order for them to be exposed to our products.

S.W.O.T Analysis

C. Opportunity 1. Expansion of product line

Ever-growing market gives us the opportunity to expand our product line.

Introduction of two new products AllRound + and Allstar in the last five periods.

2. Acquisition of Baby Boomer MarketWith the aging of this large generation, the

demand for Pharmaceuticals will increase greatly.

S.W.O.T Analysis

C. Opportunity3. Advances in biomedical research and

technology It is very beneficial to utilize this technology in order to

produce a product that may potentially revolutionize the market.

4. Getting products covered by MedicareLarge number of Americans who cannot afford

medication.The consumer and the company would greatly benefit

from the Government’s investment.

S.W.O.T Analysis

D. Threats1. Crowded Markets

Many firms that distribute similar products.Competition is very intense.

2. Faulty-product lawsuits Very difficult and costly to run long-term tests

before introducing the product to the market.Difficult to predict the future side effects of a

new product.

S.W.O.T Analysis

D. Threats3. Government regulations

F.D.A regulations in the United States are quite strict.

Even though these regulations are for the well-being of the consumer, product introduction takes ample time.

Marketing Objectives

Increase Brand Increase Brand AwarenessAwareness

Marketing Activities

Focused on increasing advertising expenditures

Continuously maintained high awareness of Allround

Launched new products to reach more of the more market (Allround+ and Allright)

Marketing Activities

Once Allround reached maturity, we shifted our advertising budget to promote the newer products

Allocated money to the four elements of our ad message: primary, benefits, comparison, and reminder

Marketing Objectives

Focus on Newer Products

Marketing Activities

Concentrated on advertising and distribution

Designated a significant portion of our budget towards advertising

Geared attention towards grocery stores and drug stores, since they generated the most sales

Constantly stayed aware of our position and that of competitors within the market

Marketing Objectives

Maintain Competitive

Shelf Space

Marketing Activities

Maintained competitive incentives for direct resellers

Ensured that our products were conveniently accessible to our customers

Provided a constant level of promotional incentives

Increasing Profit MarginsALLROUND:

•Currently selling 40% fewer units/year than 10 years ago•Profit up 20% over same period•Profit/unit (before SG&A) up more than 105% over last 10 years

Increasing Profit MarginsWhat We Can Do

•Increase Prices•Lower Promotional/Volume Discounts•Focus on Selling Direct to Retailers, not Wholesalers

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Allround Allround+ Allright

Retail

Wholesale

Increasing Marketing Department Budget

•Currently spending less on advertising than all competitors

•Budget has decreased or remained flat each of last four years

•This has resulted in extreme difficulty effectively promoting each product

How the Marketing Budget Relates to Stock Value

Advertising Budget and Stock Price

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Periods

AdvertisingExpenditure

Stock Price

•Our stock price today represents an increase of 65% over thelast 10 years•Last year’s advertising budget was 63.5% higher than 10 yearsago

Increasing Marketing Department Budget

Demonstrate to Management That Our Marketing Activities Have Directly Resulted in : Increased profits Increased profit marginsSuccessful new-product launches

What We Can Do

Lessons Learned

Lessons Learned

Profit margins from retailers are greater than those of wholesalers.

Allround MSRP: $7.09

Sold to Retailers for: $5.67-$6.38

Wholesale Price: $5.32

Lessons Learned

Discount Rates:

Direct Retailers: 10-20%

Wholesalers: 25%+

Percentage of Sales:

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Allround Allround+ Allright

Retail

Wholesale

Lessons Learned

Constantly monitor how the marketing budget is being allocated, and make changes as needed.

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Promotion Advertising Sales Force Research

% of Budget

Lessons Learned

Advertising Expenditure for Allround

Lessons Learned

It is essential to be customer-oriented.

We kept the price of Allround below inflation for every period.

$4

$5

$6

$7

$8

$9

1 2 3 4 5 6 7 8 9 10

Allround

Inflation

Lessons Learned

It is important to segment the market and focus products on under-utilized market segments.

Product Market

Allround Cold Remedies

Allround+ Cough Remedies

Allright Children’s Cold Remedies

Lessons Learned

Existing Competitors When Product Was Introduced:

Allround:

Allround+:

Allright:

Besthelp, Dripstop, Dryup, Effective, Extra

Coughcure, End

Coldcure, End+

Questions?