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Marketing Plan[1] Allstar BrandCashunda BucknerCapella UniversitySeptember 9, 20

Marketing Plan[1] Allstar BrandCashunda BucknerCapella UniversitySeptember 9, 2018Executive SummaryAllstar Brand specializes in package goods, making them the top production company of pharmaceuticals in the world. Allstar Brand All-round over the counter merchandise in cold and allergy treatment is the company’s prominent product in the market against its competitors. The American Marketing Association (AMA, 2007) states that marketing is an organizational function and a set of processes for creating, communicating, and delivering value to its customers and for managing customer’s relationships in ways that benefit the organization and its stakeholders. Allstar Brands ideal consumers are the key players for the success of such dominant production.The focus of Allstar is different brands of groups that will bring the potential customers and increase revenue. Allstar should be familiar with the customer needs and have the capacity to supply the market. The segments assessed by buyers behavioral, demographics, and psychographics. As an adaptive strategy, marketing segmentation divides the market into small groups of buyers with different needs, characteristics, or behaviors who might require separate products or marketing mixes, (Lamb, Fair, & McDaniel, 2003).Market segmentation derives from enabling Allstar to formulate their resources efficiently. The use of market segmentation will allow them to deliver high value to their customers. The product mix will focus on the needs and concerns of their consumers. Allstar Brand Corporation more than likely have a way of improving profits by using market segmentation with a marketing mix. Moreover, the corporation would be able to meet their customers’ needs, gain advantages and increase stock. The success of the company relies on a solid marketing strategy.“Segmentation is a marketing strategy which involves dividing a broad target market into subsets of consumers, business, or countries that have or are perceived to have common needs, interests, and properties and designing implementing strategies to target them” (Marketing Segmentation, 2016). Which means market segmentation is the process of aggregating buyers into segments who have a common need. Furthermore, allowing a company to target different consumers who perceive the value of products from others.Situation AnalysisThe All-round product leads the market in the over-the-counter medicine. However, the company’s performance and market share loss in the fourth quarter caused alarm with upper management. Brand awareness is the key to the market share growth in the market technique.Target Markets: Although All-round holds the market in cold medicine product but not in the market for allergies, nasal and cough medicine.Market Demographics: Geographic’s- Rural areas, urban, suburban, rural areas Demographics- Young singles, young families, mature families, retired families. Behavioral Factors- Many consumers only take All-round at night because the medicine causes drowsiness and have the same antihistamines as allergy relief meds.Market Needs: Providing excellent value as well as meeting the customer needs. Giving the customer the best medicine that relieves all their symptoms without side effects. Quality product- giving the consumer the quality they spend money on.Market Trends: Although All-round has a decrease in retention ratio. The company remains steadfast in brand awareness and conversion ratio.Market Growth: The future is bright in the cough medicine market with an opportunity for big sales.SWOTStrength- Strong sales force, Brand recognition, Product Effectiveness, Strong sales force, dedicated marketing team.Weakness- Fluctuating Marketing Budget, Advertisement costsOpportunities-Introduce new prescription products, modify ingredients to increase allergy sales and reduce side effects.Threat- New competitors entering the market, Low retention ratio, Concern of side effects. Competitors collectively offer nine brands across the five product categories.Marketing StrategyAllstar strategic plan is to manage long-term profits and market share with the competition in mind. Over the last few periods, All-round has been successful with sales, which is attributed to having a dedicated team with a clear focus on being number one. With the new brands that have hit the market and more consumers using home remedies, it is essential for the company to maintain the strategy. The main competitors are Best help and Dry up when it comes to cold medications. However, Cough cure and End are right behind them with their prices being the closest to All-round and ingredients being similar. Like the alcohol and cough suppressant which Best help and Dry up do not have. Many consumers purchase Cough cure and End over All-round and have the next highest conversion ratios as well.To separate itself from the others All-round should not only make changes in their products but also in their prices. Reducing prices slightly so that All-round don’t have the same amount as the others which will make it even more affordable. All-round will also want to look at its sales force budget and promotional pricing, to gain an advantage with product placement and market share.4P’s Marketing MixPlace: Typical retail outlets like pharmacies, convenience stores, and general stores.Price: The price will determine what impact will be on profit margins. “MSRP for All-round is relatively high”, but “the OCM group believes that All-round’s sales have not suffered because of the higher price” (Deighan, James, Kinnear, 1990, p. 21).Product: All-round OTC cold medicationPromotion: “Advertising plays a major role in establishing brand awareness among consumers and in helping to shape consumers’ perceptions of products. Last period, $20 million dollars was spent on All-round’s advertising campaign, primarily for commercials aired on network television. Competitive advertising budgets for last period ranged from $1 million for the Effective brand to $16 million for Cough-cure” (Deighan, James, Kinnear, 1990, p. 22).Allstar is also engaged in both trade and consumer promotions like coupons and trial sizes.Marketing TacticsAllstar Brands way to execute this strategy successfully, they should have a proactive approach. This approach ensures the company meets all goals. To achieve these goals, Allstar Brands’ needs to:• Keep up with the demand of the product development by increasing the manufacturing numbers of Allstar products.• In any strategy, it is important to develop a solid technology outline.• Developing new products or ideas that well fit Allstar’s target market, wheatear it will be for sickness or allergies.• We need to maintain a competitive leadership to remain the market power• There is always room to improve distribution channels, coverage, and quality of delivery.• Work on the cost of goods sold due to the demand and adjust when needed.• It is essential to get a head start on all the factors of the strategy. Being proactive is the key, then set a more aggressive approach based on this information.Factorso Conducts regular reports & surveyso Effectively manage budget the budget based off results.o The growth of the business is contingent on the way budget is spent.o Takes proactive risks, using data from the previous months. Risks usually equal high rewards and growth. But if there are severe risks, the business can fail.Social MediaThe most critical factor in today’s market is advertising. Advertising reaches buyers worldwide and builds a lasting image of a product. Consumers often believe a heavily advertised brand must offer “good value” (Kotler and Keller, 2012). Advertising not only helps businesses prosper but make consumers aware of the product. Advertising is any paid form of non-personal presentation and promotion of goods, ideas or service.The cheapest way to advertise is on social media. Many of these sites are free and can be seen by consumers worldwide. Create Social media events to innovate and collaborate. Also creating initiatives for customers to post their stories resonating with the use of the products. This forum allows consumers to give feedback on the side effect some may experience and the way the product worked for them. Many consumers have different symptoms, and the results may vary so, with the page open for discussion Allstar can address this issues and work on improvements if needed. The way for All-star to dominate its presence on social media is by integrating their other brand channels into their existing channels. The Videos tab on their Facebook page naturally contains the same content from the YouTube channels and as a result, also their other Facebook pages within relevance.The current advertising agency is Brewster, Maxwell, and Wheeler (BMW). This agency requires 15% of the advertising budget. They are known for having high-quality work, and even the price is high, you get what you pay for. “Companies who believe that great value should be emphasized more than pricing should use advertising agencies that have the highest standards for their company so that the best advertising can be achieved” (MSG,2016). Having the product that consumers see first will allow us to sustain a strong customer base.Financial ProjectionsThe last period of Allstar four-hour multi-symptom medicine was very successful with profits of 355 million. With the promotions and expenses, $145.3 million was the margin, and the gross margin was $172.3 million. Marketing, sales and administrative costs were $129.5 million. The shares in Allstar are fixed costs and corporate overhead. To meet the demand Allstar will have to expand the plant which will increase the fixed values based on the size. Upper management expects All-round to bring more income in the future. Fixed cost charges currently at $62.4 million with a net income of $67.2 million. All-round average price is $4.58 with a contribution of 102.1 million and sales in retail is 4.1 37million. All-round managers have the task to maintain long-term profits and shares in the study changing the competitive market. Management will continue to make logical decisions regarding product choice, price, promotion and distribution over the next ten periods. They want to make Allstar Brands the leader in profits and shares in the OTC cold medication market.Appendix Market Share by Category Cold Cough Allergy Nasal Total Mfr. Sales (M$) 879.7 366.4 126.1 119.1 1491.2 Growth 6.60% 3.20% 5.90% 4.50% 5.10% All-round 40.40% 0.00% 0.00% 0.00% 23.80% Believe 0 0 50.7 0 4.3 Best help 25.2 0 0 0 14.9 Cough Cure 0 54.3 0 0 13.3 De-Fogg 0 0 49.3 0 4.2 Drip stop 0 0 0 52 4.2 Dry up 14.9 0 0 0 8.8 Effective 0 0 0 48 3.8 End 0 45.7 0 0 11.2 Extra 19.5 0 0 0 11.5 Market Survey-Awareness, Trials, Repurchase Brand Brand awareness Brand Trials Most Freq. Purchased Conversion Ratio Retention Ratio % % % % % All-round 74.1 47.1 21.8 63.6 46.3 Believe 18.9 9.2 3.8 48.5 41.9 Best help 56.6 30 13 53.1 43.2 Cough Cure 49 29 18.4 59.1 63.6 De-Fogg 24.1 13 4.1 53.9 31.8 Drip stop 20.2 11.3 3.6 56.1 31.4 Dry up 23.2 10.9 7.2 47 65.6 Effective 22 12 3.1 54.5 26.2 End 46.9 30.6 15.6 65.3 50.8 Extra 60.1 31.8 9.5 52.8 29.9 Market Share Based on Retail Sales Indep.Drug Chain Drug Grocery Convenience Mass Merch Total Ret Sales (Mill.$) $437.00 $559.80 $731.60 $80.50 $187.50 $1,996.40 Growth 0.30% 4.50% 5.50% 4.00% 9.00% 4.30% All-round 22.60% 22.10% 24.60% 23.20% 25.00% 23.40% Believe 4.90% 5.40% 3.30% 3.70% 2.70% 4.20% Best help 13.20% 13.20% 17.30% 16.70% 16.30% 15.10% Cough Cure 16.70% 16.30% 10.90% 12.30% 12.90% 13.90% De-Fogg 5.10% 5.60% 3.40% 3.90% 2.80% 4.40% Drip stop 3.70% 3.70% 4.90% 4.70% 4.60% 4.30% Dry up 7.50% 7.80% 10.10% 9.50% 9.60% 8.80% Effective 3.50% 3.40% 4.60% 4.40% 4.30% 4.00% End 13.50% 13.20% 8.80% 10.00% 10.40% 11.30% Extra 9.20% 9.20% 12.10% 11.60% 11.40% 10.60% Appendix 2All-round since they are the “market leader in the over-the-counter cold and allergy remedy market” saw competition (PharmaSim, p. 14). All-round success comes from sales and profitability (PharmaSim).Period 0, with All-round, Team One had a cumulative net income of $67.2 million or 18.9%. Period 1 had a budget of $39.3 million or 11.1%. Our stock price came in at $38.35. Our goal is for All-round to increase cumulative net income and stock price for the next period, #1 by increasing sales through more shelf space in stores and brand awareness.Period 1, All-round saw gains in sales, brand awareness and increased stock price with a cumulative net income of $170.2 million. The sales force was increased to 6.0 as well as the administrative costs, fixed costs, and net income.Now in period 2, there was a decreased sale, and a drop-in stock price but the cumulative net income increased to $252.0 million. The brand awareness and satisfaction of the consumer also increased. The total sales force and fixed costs rose as well. Period 3 the sales, stock price, and gross margins continued to drop, while the fixed costs increased. Cumulative net income increased to $319.5 million and brand awareness also increased. The sales force was left the same as the previous period due to decreased sales.Period 4 shows an increased sale 3.9 which includes administration fees, consumer satisfaction, fixed costs, and brand awareness. The stock price went down to $30.09 but cumulative net income increased to $383.7 million. The share of sales remained so there was no need to improve our sales force. Reducing the some of the independent drugstore and convenience store was considered since the decline in sales. Period 5, With the addition of All-round +, Allstar saw a stock decreased to $ 28.32. Administrative and fixed costs increased, and cumulative net income increased to $464.7million due to a rise in manufacturer sales. Period 6 Allstar introduced a new product, All-right for allergies increasing aggregate net income to $527.1 million. Allstar increased prices on existing products, and we continued to see increases in sales across the board. Due to the line extension and new product, we increased our sales force, which also increased administrative costs and fixed costs rose as well.Controls• Increase market share: 5% – now at 23.8%• Increase brand awareness by 5% – now at 74.1%• Increase retention ratio by 5% – now at 46.3%• Increase sales at 5% – now at $355.3MThese goals will be met by the key success factors that will be discussed next. These include the strategic marketing campaigns and objectives to get to these performance goals that are stated above. All-round brands will have to outspend their competition and increase sales to increase market share. The objectives to increase market share will be to increase the brand awareness, retention ratio, and increase sales of the product.SummaryAllstar initial strategy report will focus on critical factors to ensure a long-term marketing plan. The factors include being the first in the market, unbeatable product development and superb advertising. Being the leading provider of OTC medicine while increasing the market shares in the primary goal Allstar managers are focused on. To achieve this goal plans will have to be in place and be successful.The marketing plan of All-round will be to outspend the competition in marketing dollars. They will need to increase spending of promotions, commercials, and advertising. All-round plans to hire the S&R group for advertising and invest in retailer and consumer promotions to promote their medicines and brand to consumers. Which will include free trials, discounts, coupons and displays at the retailer.To maintain its current lead in the market of the cold product, All-round must increase their share of the other categories. The way to do this is by developing a new product in a cough, nasal or allergy category. Having a new brand will show awareness that All-round is still strong when it comes to competition. All-round way of competing will be by offering the product at a price the competition can’t beat and increase sales.ReferencesPharmaSim. (n.d.). PharmaSim Student Manual- AllStar Brands. PharmaSim Student Manual. Pearson.Philip Kotler, K. L. (2015). Marketing Management 14th Edition. Upper Saddle River: Pearson Education, Inc.Business dictionary (2016) Marketing segmentation. Retrieved, September 19, 2018. fromwww.businessdictionary.com/definition/market.segmentation.htmlLamb, C. W., Fair, J. F., & McDaniel. C. (2003). Marketing. Beijing: Peking University Press. p.214, 228, 291.MSG Experts (2016). Objectives and Importance of Advertising. Retrieved: http://www.managementstudyguide.com/objectives-importance-of-advertising.htm.Slavick, D. (2017). Create Customer Loyalty That Lasts. Retrieved, September 21, 2018. fromhttps://deloitte.wsj.com/cmo/2017/10/25/create-customer-loyalty-that-lasts/ [1] Adapted from Kotler, P. T., & Keller, K. L. (2016). Framework for marketing management (6th ed.). Boston, MA: Pearson.

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