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Below are the current prices of Allround brands and their competitors. Allround is priced appropriately for the value received by the consumer and below average of all brands sold. MSRPIndependentDrugstoresChainDrugstoresGroceryStoresConvenienceStoresMassMerchandisersAllround$5.62 $5.23 $4.62 $4.58 $5.35 $4.30 AllroundPlus$5.15 $5.21 $4.75 $4.60 $5.29 $4.35 Believe$5.19 $4.96 $4.39 $4.30 $5.06 $4.06 Besthelp$5.69 $5.49 $4.86 $4.76 $5.60 $4.49 BesthelpPlus$5.49 $5.25 $4.65 $4.55 $5.35 $4.29 Coldcure$5.89 $5.88 $5.20 $5.10 $6.00 $4.80 Coughcure$7.09 $7.08 $6.25 $6.13 $7.22 $5.78 Defogg$5.19 $5.11 $4.67 $4.51 $5.20 $4.29 Dripstop$5.19 $5.11 $4.67 $4.51 $5.20 $4.29 Dryup$5.49 $5.31 $4.87 $4.69 $5.40 $4.47 DryupPlus$5.69 $5.42 $4.98 $4.79 $5.52 $4.57 Effective$5.19 $5.21 $4.68 $4.54 $5.30 $4.31 End$6.59 $6.61 $5.94 $5.77 $6.73 $5.47 Extra$5.49 $5.51 $4.95 $4.81 $5.61 $4.56 Promotion– To establish brand awareness and shape consumer perception, Allround manages a budget to be spent on advertising to certain target markets. Allround uses various advertising channels to build brand awareness, which includes:Channel promotion allowances – additional discounts offered to retailers given to gain shelf space for the Allround brand. Co-op advertising – provides incentives to the distribution channels to feature the Allround brand in their advertisingPoint of purchase displays – special displays that promote the Allround brand in various areas throughout the storeCoupons – offers a discount off the retail price of the Allround brand directly to the 11
ALLROUND MARKETING PLANconsumer at the point of purchase. Allround will apply two options in building brand awareness and gaining a favorable position with the sales channels. First, trade promotions and volume discounts will be increased as well as an emphasis on the sales force support to obtain advantageous shelf space making the Allround more appealing to consumers at the point of purchase. Second, advertising and promotion will be increased to strengthen the brand through awareness and greater knowledge ofthe benefits of the Allround product and any extensions to the line. FINANCIALPROJECTIONSOver the next six years, our marketing and promotion budget will be maintained and usedin alignment with our marketing strategy. Our main goal is to use the funds to secure favorable shelving space and increase brand awareness with the consumer. Brand Awareness to the Consumer$1m will be spent on revising the look of the Allbrand Packaging. We believe this step is important as it is tied to the desire to gain favorable shelf space in various distribution channels. The new modern look of the packaging will allow our product to stand out in an increasingly cluttered OTC cold medicine aisle. Additional funds of $44m will be budgeted over the six years,properly allocating the budget to cover Point of Purchase development and increase coupons for consumers to use in the retail outlets. Securing Favorable Shelf SpaceTo secure favorable shelf space, we will focus on investing in increased trade promotion allowances, securing additional direct and indirect salespeople, and investing in additional Co-Op advertising. Beginning with a trade allowance of 17% we will gradually increase it over time by 7.6% to 18.3%. This gradual increase will allow our net income to continue to grow and