Allstar Marketing Plan
Allstar Marketing PlanSituation AnalysisAllstar Brands Corporation is one of the leading manufacturers of packaged goods in the world. Allstar Brands Allround product is a market leader in the over the-counter (OTC) cold and allergy remedy market.Current Industry growth is at 4.3% and is expected to be higher for the next year. Inflation has been at 3%, and is forecasted to around 2.5% for the coming year, we will increase the MSRP to reflect the inflation rate. Population growth is at 0.9% and is expected to grow at the same rate for the next year.Grocery stores, mass merchandisers and chain drug stores have seen the largest growth in terms of retail sales ($ value increase) and this presents a great opportunity for us to capture a higher market share from these channels. The Allround product is the highest priced product in the cold remedy market, but given the fact that we are one of the most well-known brands, we can afford to sell it at a higher price.Sales AnalysisBrand awareness for Allstar stands at a positive 74%. A purchase survey shows that that 22% of respondents buy the Allstar brand for medication.Most of the OTC medicines are purchased from Grocery and Chain Drug stores. Retail price is directly correlated to the sales that are happening from these channels and there is therefore a much greater scope to increase sales from these channels which have higher growth rates (in $ value) and the biggest channels in terms of sales revenue.CompetitorsAllstar has four competitors, each one with different products. The following Table 1, shows the comparison between the companies and their products with Allstar. For this comparison we have used some key data, like product attributes, revenue and sales forces. Table 2 shows a better view of the competitor’s strengths and weakness relatively to Allstar.
[pic 1]Table 1– Comparison Table of the different companies and their products[pic 2]Table 2 – Competitors strengths and weakness relatively to AllstarCustomersOur customers are mainly families and retired people which buy the product because of the effectiveness and high recognition of the company. For 65% of the population, medication effectiveness is the reason behind a future purchase. For younger customers, the reasoning is effectiveness & side effects; for younger families, side effect & effectiveness; for mature families and empty nesters, effectiveness & price and lastly for the retired, price & effectiveness.Allstar is a well-known brand with a high brand recognition. It is a leader when it comes to customers buying their product for the first time and it is also the most frequently purchased product. However, the retention ratio is quite low when compared to other brands. One way to offset this would be to invest in marketing and advertising which targets customers through reminders.Customers buy most of their cold medicines through grocery stores and their cough medicines from chain stories for allergy. Customers are influenced by coupons and by in store advertising that helps them make decisions. Increasing co-op advertising to affect brand switching will prove to be effective.