Allround Brand is a sub-division of the Pharmaceuticals division within Allstar Brands Corporation that is responsible for over the counter cold and allergy remedy market. Our group is comprised of a marketing management team within Allround that work together on the matters related to over the counter cold and allergy remedy market. The task of the Allround brand management team is to maintain long-term profitability and market share in an increasing competitive and changing environment. This will be achieved through sound marketing strategies that allows Allround to not only maintain our current market of customers, but expand our market share to untapped segments. To remain relevant our marketing management team will focus on brand awareness, differentiation, pricing and promotional allowances, commitment to innovation, and proper sales force allocations. Success factors will depend on how Allround marketing strategy responds to a changing market while allocating the appropriate funding to meet these changes.
Final Simulation Report
For manufacturer’s suggested retail price, our firm followed a strategy of increases based on several market factors. One of the main factors we looked at was the inflation rate, which oftentimes outpaced our increases in MSRP. We followed a very conservative approach for price increases and strived to have a product that worked well, met the consumer’s expectations, and was competitively priced to the lower end of our closest competitor’s products. This strategy was followed across the board for both Allround, and Allround+. We found that conservative price increases did not drastically affect the demand for the product and that our core brand, Allround remained inelastic in nature. This was likely due to the brand loyalty and brand image obtained throughout the simulation.
For volume discounts and promotional allowances, we had a straightforward and simple process. We never changed our allowances from our initial strategy and this worked well for the firm. Every analysis showed that we were within industry norms and we did not feel a need to changes something that was not broken. We had our allocation set as listed in the appendix (see table 1) for our core brand, Allround.
Allround+ followed a similar strategy of allowances and promotional/advertising budgetary allowances. Our firm’s strategy for this was to maximize the allowable percentage of budget for new brands as a way to build brand identity and customer loyalty. Overall, social media criticism was a big determining factor of the promotional strategy for all brands. In hindsight, our firm would have most likely reduced some of the allocation for point of purchase and Co-Op advertisement as we were substantially higher than any of the competition.