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ALLSTAR BRANDS
YEAR END REVIEW
Todd Nappi (CEO)
Tyrone Ottley (Secretary)
Zachery Leonard (CFO)
Jonathan Saunders (CIO & part-time Janitor)
AGENDA
Organizational Overview
Review of Key Objectives
Critical Success Factors
Marketing Strategy
Review of Progress Against Objectives
Lessons Learned
The Future
OUR MISSION
Deliver professionally endorsed, effective
pharmaceutical products for the entire family,
while aiming to be the low-cost, brand-name
leader for the consumer cold medicine market.
All of this must be accomplished while
maintaining a profit and steady growth rate for
our shareholders.
REVIEW OF KEY OBJECTIVES
Keep price increases moderate
Formulate products to optimize appeal to target
market
Attain 5-10% annual growth in revenue on all
products
Increase stock price 5-10% annually
Maintain strong brand awareness
Critical Success Factors
Strong brand awareness
Relatively low prices
Eager and efficient Distribution Network
Dedicated and lively staff
Marketing Strategy
Increase product price while staying under inflation percentage
Found avg. inflation rate and increased price slightly lower
Ex. If inflation rate increase prices by 5%, we only went up 3 or 4
%. We also used the .9 rule to make consumers feel better about
prices
Reformulate our product
By doing so manufacturing costs were reduced in turn allowing us to
offer a low price to our customers
Low prices attracted a larger customer base which allowed us to
see a large increase in sales
Release new product to the market
First we researched to see what was currently available in the market
to avoid competition
Found that there was only a single 12 hour capsule, so we chose to
release a 12 hour “multi” capsule
Marketing Strategy cont’d
Release a 3rd product
Goal was to flood the market
Looked for a need in the market. Found that the nasal spray
market could be penetrated
Keep advertising budget steady
Used our inflation analysis to help determine our yearly expenditure
Allocated budget percentages based on how long the product has
been on the market and other variables such as uniqueness in
market
Ex. 12 hour multi didn’t use high percentage of budget
towards Comparing or Reminding
Marketing Strategy cont’d
Increase stock price 5 – 10% each period
Used all the clues from the marketing update to help us try to obtain
this goal
Ex. Inflation rate to adjust prices, Advertising spending, Sales
force
Revenue
Monitor revenue for each product
If 5 – 10% growth rate then progressing
Allowed us to drop Allright due to revenue issues
Target Markets
Allround
4 hour multi-liquid
Non alcohol for the kids and families
Low price
Allround+
12 hour multi-capsule
Young working adults needing most of the day relief
No problem taking pills
Affordable and most of all effective
Allright
Nasal spray
Middle aged adults
No problem using sprays
Sales
Revenue
Products
Stock Price
Stock Price
100
90
80
Price $
70
60
Baseline (5%)
50
Stock Price
40
Baseline (10%)
30
20
10
0
1
2
3
4
5
6
Year
7
8
9
10
Market Share
Brand Awareness
Lessons Learned
Discuss major decisions in depth
As well as points from paper
Three Year Outlook
Re-establish our dominant position
Introduce new product
Summary
Stock Prices grew 93%
Cum. Net Income of $990 MM
Failed Introduction of Allright
Astounding recovery and refocusing
Thanks