Marketing Paper
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Growth
Our management team has projected 3.7% growth faster than the industry in all areas except net income percent., or 10% overall. Allround has forecasted 20% growth in the third period, when a new product becomes available. Following the initial increase to 20% in period 3 and 15% in 4, the numbers have been projected to decline back down to 10% growth. Our primary metrics for growth measurement will be market share and income statement. We look to earn greater sales percentages while increasing our companys value, which will increase our stock price. We have selected purchases as our additional metric because it aligns with our main goal, increasing Allrounds value. We hope to see our net income percentage remain constant so that our prices do not fluctuate a great degree, providing the customer with the perception of a consistent product. Our final goals are: $476.3 Million in sales, $112.7 million net income, 26.6% market share, a stock price of 26.81, purchases of 23.6% and total manufacturer sales of $3,388.8 million.
Strengths and Weaknesses
Our product excels at the primary goal of any business, pleasing the customer. More than half of Allround customers (50.6%) believe that the product is effective in treating symptoms, which is greater than 6.5% higher than the next leading competitor. This satisfaction is undoubtedly consumer loyalty, allowing Allround marketing to increase spending on reaching new customers. Product awareness is also high in the industry at 68.1%. Despite the high satisfaction and awareness, Allround struggles to outsell its competitors, reeling in only 10.6% of purchases, placing it fourth. This is both an opportunity and a threat. It is an opportunity in that people have heard of Allround and successful marketing campaigns may increase market share. However, it is a threat because although people have heard of Allround, they are selecting other products. It will be essential to figure out why Allround, despite having a superior product, is being passed up in favor of other medications. Allround contains the depressant, alcohol. As the only one in the industry, they have a niche in the nighttime market as it causes drowsiness. If other companies start trying to reach this market, it may be best for Allround to drop the alcohol as consumers have expressed a desire to avoid drowsy side effects. The industry high retail price for cold medicine is a weakness of Allround. The price may make it difficult to attract new consumers. For Allround to be the best in the business, the sales force has to be the best as well as they lack the manpower that OCM leader, Ethik has. The cough industry is growing rapidly and has just two players, however Allround is not one of them. Not entering this restricts potential growth.
Financial Situation
Allround operates a profitable business in a growing industry. The profit margin of 23.6% reflects low overhead and fixed costs. With that margin, there is room to increase spending to produce greater unit sales to increase the bottom line. 32.8% of costs are marketing and promotion, meaning there is plenty of room to reallocate finances. The industry growth of 6.3% in period 0 reflects opportunity to attract a wealth of new customers. Despite the inflation rate of .8%, prices were able to decrease by .4%, helping to provide customer friendly pricing.
Customers
Overall cold remedies are designed to relieve several basic symptoms such as aches and fever, nasal congestion, chest congestion, runny nose, and cough. Allstar brands focus is slowing down those symptoms to allow the consumer to feel well and not allow sickness to effect their everyday activities. Allstar Brand is the only company in the cold medicine industry that uses a liquid formula, so we feel that there is a need to break into the market with a capsule or a liquid that can relieve other symptoms. We think expanding into the cough market would be a large opportunity for growth, because the industry is growing at 7%, there are only two sellers, and the industrys annual revenues are over $500 million. We believe customers do not have enough variety in the cough industry (2 options) and believe we are filling a need. So with that statistic we feel that there is a need for creating a cough medicine for our customers. The possibility of using a capsule in the cough liquid dominated industry (End & Coughcure) is that it provides convenience and doesnt have the liquid after taste, even though it does soothe throats
In terms of cold medicine, Allstar Brand should try to satisfy is to alleviate side effects from taking the medicine. Due to the heavier emphasis on healthier lifestyles and concerns about performance under medication, side effects have become a greater consideration that companies need to think about when satisfying