97%(79)77 out of 79 people found this document helpful
This preview shows page 12 - 14 out of 23 pages.
1.8- Survey of TradeoffsSurvey of TradeoffsCross Section: all respondents (100.0%)BrandMSRPPerceivedPricePerceivedEffectPurchased Allright$4.50Very LowLow1.0%Allround$4.99LowAverage23.2%Allround+$5.50HighLow2.8%Besthelp+$5.29AverageLow4.5%Coldcure$5.79HighLow7.3%Coughcure$6.89Very HighLow6.0%Dryup$5.19AverageAverage5.2%ThreatsWhen it comes to the external threats that Allstar brand can’t control but may affected by,the introduction of End+ stands out. Within period # 5, Ethik one of Allstars biggest competitorsannounced the introduction of their new brand by the name of End+. Because this product is verycomparable to Allright children’s cough medicine, it could be considered as a threat. The only
MARKETING PLAN OF ALLSTAR13difference between the two products is that Allright contains an analgesic while End+ doesn’t.There is also a difference between the products prices, End+ has a MSRP of $5.69 while Allrighthas a MSRP of $4.50. With this, out of all of the OTC brands End+ also was purchased 2.6% ofthe time while Allright was only purchased 1% of the time. End+ is clearly a threat, but Allrightcould mitigate this threat by continuing to advertise the differences between the two products.Another threat that Allstar could potentially face someday is changes in healthcare laws.In particular, it would the laws and forces that regulate what ingredients can and can’t be placedwithin OTC products. Changes like these are inevitable and in order for Allstar to mitigate someof the risks, they should explore and survey many different formula concoctions for their alreadypopular products.Marketing StrategyOverall Market Strategy and competitiveness for Period #1For Period # 1, the only product that Allstar was producing was their Allround product.The marketing strategy for this period was to utilize social media (Facebook/Twitter) to postitems that were of interest from the view point of Allround’s brand management team. Thestrategy is to allow the public to subscribe to theses social media accounts to interact and get thelatest product updates. This period created the highest market share (24.5%) among all OTCbrands based on all manufacture salesOverall Market Strategy and competitiveness for Period #2Within Period # 2, Allround OTC medicine was still the sole product of Allstar brand.The marketing strategy for this period was to reformulate the already popular brand. The threeoptions were to either switch the formula from a cough suppressant over to an expectorant or todrop all of the alcohol that’s contained in the products completely or to keep the current formula.Since the product is already successful, the market strategy for this period was made to keep theoriginal Allround brand formula. When it comes to the competitiveness of Allround, Dyrup is acompetitor but Allround is still dominating the market share of all OTC brands with 23.1% ofoverall manufacturer sales.