Allround Management Final Report

allstar brands interoffice memorandum

      Executive Summary

      The prime objective of this memorandum is to share our success over the past 10 years in the ultra-competitive OTC Cold Medicine market. Our success is attributed to an ongoing commitment from our brand management team, unwavering support from our stockholders and most importantly, our loyal customers, who have firmly put their faith in our OTC products year after year and help us exceed our bottom-line objective of quadrupled cumulative net income from Period 4 to Period 10. We fell short of quadrupling our cumulative net revenue from Period 4 to Period 10 by a slight margin, but we more than compensated for that with our stock price almost reach the $150 mark. Our phenomenal stock price reinforced the marketing strategy that we had put in place and we are very happy to announce heavy cash dividends for our investors who have shown faith in our company, even when we were not performing as per expectations. More importantly, we have been able to generate sufficient cash to implement our future marketing strategy. We met our objectives by closely analyzing the market and consumer behavior and weighed the repercussions of each decision and assessed the tradeoffs involved. We also met our objective of making Allround a Star product in the BCG Matrix (See Exhibit 5). Providing over ten years of relief to our customers remains our proudest achievement and we are positive that our brand will grow further and remain an industry benchmark for many years to come.

Our main strategy was to consolidate the position of Allstar products by focusing on their net income, market share, average marketing efficiency index and stock price (See Exhibits 1-4). In addition to Allround, we introduced two new products, Allround+, a 12-hour cold and allergy capsule and Allright, a nasal spray. This was a shift from our original strategy to introduce Allround+ exclusively as a cold capsule, and Allright as a non-soporific 4-hour cold capsule. We altered our strategy to avoid cannibalization within our own range of products. Since, we had such a distinct lineup of products, we aimed to target all demographic sections with each of our products, focusing on advertising the USP of each product and promoting our products through all available channels. We particularly invested large sums of money into advertising and promoting our new products so that they could get a firm foothold into the industry and further enhanced Allround’s majority market share by stimulating repurchase through coupons. The baseline strategy for our management team was to optimize salesforce allocation, mainly in grocery stores and chain drug stores, the majority source of our revenues. The goal was to increase in-store support and optimize shelf space for our products. However, in the subsequent periods, we adopted a more flexible and adaptive strategy by focusing on volumes of sales by aggressively focusing on indirect salesforce, particularly wholesalers. This strategy gave our sales a massive boost, and eventually we also had to ramp up production by opening a new manufacturing plant. A massive adjustment we made to our strategy was to rely less on the purchasable market surveys, and rely more on the market updates available every period and bank on the expertise and experience of our highly capable brand management team. We were able to drastically cut down our expenses by relying on our own judgement rather than on expensive market surveys.