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Allstar Brands Marketing Plan

Jose Rodriguez

Marketing 640-41
Prof. Harlan Spotts
November 26th 2012

Outline
A. Company Overview
B. Competitors
C. Marketing Objectives
D. SWOT Analysis
i.

Strengths

ii.

Weaknesses

iii.

Opportunities

iv.

Threats

E. Target Market
F. Marketing Activities
i.

4 Ps of Marketing

G. 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 market

These 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 Analysis
Strengths

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 base

Opportunities

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 Canada
Target Market
Since 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 Activities
Product: 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 welldefined 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 Discovered
Allstar 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.