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Increase Customer Retention RateAllround is viewed as one of the most effective brands at reducing multiple cold 7
ALLROUND MARKETING PLANsymptoms, but there has been some opposition from physicians and consumer groups concerningmulti-symptom products that may provide excessive medication to target the numerous cold circumstances. To understand what is causing a decrease in customer retention, Allround should purchase a customer survey to gain some understanding of what the Allround product is not providing in relation to its competitors. Also, our merchandisers are reporting back that Allround’s packaging does not stand out in an increasingly cluttered OTC cold medicine aisle. Allstar can take the time to improve its packaging, allowing for the new look to strongly show the benefits the product offers and revising the look may make it look less dated. Secure Convenience Store SalesTo get product to market, Allround uses both direct and indirect distribution channels, where direct sales, target independent drugstores and chain retail accounts, while indirect sales target Wholesalers, Merchandisers, and Detailers. In a group study of average shelf space in retail channels, Allround did not receive the best placement overall throughout the channels. The 24.3% decrease in convenience store sales, warrants a more in-depth marketing strategy and an increase in product promotion to those channels where sales have suffered. Allstar should increase its promotional budget for point-of-purchase displays by 33%, from $1.5m to $2.0m andproperly allocate the budget into channels, including convenience stores, where more brand awareness is needed to attract customers. Brand Extension Product Implementation Since Allround is a positive cash cow for Allstar and it possesses positive brand recognition, implementing a brand extension through a new product could increase sales, create anew consumer base and allow Allround to gain more market share. Every two years we can either introduce a new product through reformulation, line extension or a new product which willcause the least amount of cannibalization. This product should address consumers’ concerns, bring in additional sales and continue to establish brand awareness of Allround.MARKETINGTACTICSTo apply the strategies in the previous section we will implement specific marketing tactics. 8
ALLROUND MARKETING PLANProducts–The Pharmaceutical Division of Allstar Brands markets and produces ethical and Over the Counter (OTC) medications. Ethical drugs are available through pharmacies with a physician’s prescription, whereas OTC remedies are widely distributed without the need for a prescription. Allround, Allstar’s cash cow, is a 4-hr multi-symptom cold liquid, designed to address five basic symptoms, aches and fever, nasal congestion, chest congestion, runny nose, and cough. Allround contains an analgesic, an antihistamine, a decongestant, a cough suppressant, and alcohol. Brands come in one of three forms: liquid, capsule, or spray. Nasal sprays contain only a topical nasal decongestant that provides faster relief than other forms.