1. AllRound
Marketing Plan
By: Ebonee A. Elliott
This document will be a comprehensive blueprint which outlines the company AllRound’s
overall marketing efforts. The company’s advertising and marketing efforts for the coming year
as well as a statement of the marketing situation, a discussion of target markets and company
positioning and a description of the marketing mix will be explained thoroughly.
2/24/2015
2. Contents
Description of the Organization …………………….......1
Situation Analysis………………………………………4
Objectives………………………………………………14
Marketing Strategy…………………………....…14 cont.
Marketing Programs and Tactics…………………….…17
Financial Documents………………………….…17 cont.
Monitors and Controls....................................................19
Contingency Plans.......................................................... 20
Executive Summary........................................................ 21
3. 1. Description of the Organization
1.1 MissionStatement: The Customer can count on us to professionally network functional
pharmaceutical products to allow us to exceed customer expectations.
1. Philosophy, Values, & Ethics: The Company of AllRound has a philosophy that promises all
of its customer’s medication at an affordable price while still working efficiently. The company
values its customers greatly and appreciates customer feedback and satisfaction rate.
2. Business Domain: The Business Domain for AllRound is the Pharmaceutical Business.
3. Competitive Advantage: One of the many competitive advantages AllRound has is its
affordable price, Brand Awareness and Brand Satisfaction.
4. Energizing Factor: There are many opportunities for AllRound to grow further into the
pharmaceutical marketplace.
1.2 Organization Departments:
A. B. C. D.
4. A. Manufacturing Department:
Suggest Retail prices to retailers are below the recommended price
Manufacturers commonly offer volume discounts of 15-40%
The support of a manufacturer’s sales force is critical to the success of a brand
The Manufacturing Department allows for Flexible manufacturing a technique which
accommodates AllRound’s’ plants to accommodate several product lines. Once capacity is
built, however, it cannot be decreased.
B. Finance Department:
Sales of $355.3 Million Last Period
Received budget to make marketing decisions for the AllRound brand
The marketing budget must cover all sales force, advertising, and consumer and trade
promotion expenditures.
The Finance Department notes that AllRound is a successful and profitable brand with sales
of $355.3 million at the manufacturer's level last period. The gross margin was $172.3
million, and the margin after advertising and promotional expenses was $145.3 million. The
margin after all marketing expenditures, including sales force and administrative costs, was
$129.5 million. The AllRound brand also carries its share of fixed costs, including the plant
where AllRound is produced and a share of corporate overhead charges.
C. Competitive:
Competition and distribution are free (data)
The Five C’s
Understanding the dynamics of competition is critical to the success of any marketing plan
AllRound’s competition explained that the OCM group monitors competitive activity in a
number of areas, including pricing and promotional allowances, advertising, consumer and
trade promotion, and sales force allocation. It is also important to explain the 5 C’s which are
Context, Competitors, Customers, Collaborators, and Company (Internal and External
Analysis).
D. Marketing Department:
Marketing decisions are made as a group
Understanding the basic marketing variables before becoming more involved
The marketing research firm conducts this survey every period.
The Marketing Department The task of the AllRound brand management team is to maintain
long-term profitability and market share in an increasingly competitive and changing
environment. With great enthusiasm, the OCM group sets out to do the job. Each member
has separate assignments, but all are concerned with the performance of the AllRound brand
and any new brands that might be forthcoming. It will be necessary to use the information
presented in the exhibits and possibly other marketing research studies to assess AllRound’s
situation.
5. 2. Situational Analysis
2.1 Internal Situation Analysis/ External Situation Analysis:
Context: AllRound has multiple environmental factors that the firm has to monitor. The
demand for cold medicine is very much dependent on the number of people reporting various
illnesses, as well as seasonal influences (increased occurrence of influenza or high pollen
count). There may be some fundamental changes in health concerns that may be monitored
by tracking physician recommendations or the purchasing decisions of consumers. The effect
of inflation on costs and pricing is also considered.
Competitors: A benefit from understanding the dynamics of competition is that through the
analysis of competitive marketing programs, one can often gain insight into what may be a
more effective use of marketing resources. The most difficult facet of the dynamics of
competition is anticipating the retaliatory moves of AllRound competitors and deciding
whether or not they might neutralize the marketing programs. AllRound should consider the
effects of changes in a competitor's price, sales force, promotion, or advertising approach on
the success of the strategy.
Customers: The customers of AllRound incorporate two main elements of the 5C are which
include: the nature of demand and the extent of demand. The nature of demand s includes
understanding what benefits the customer is seeking, how they learn about products, what
their motivation is for purchasing, where they buy the product, what they consider when
choosing a product, and the like. The study of these types of issues is often called consumer
behavior. The second analysis is the extent of demand. This includes market size and growth,
purchase quantities and usage rates, and etc.
Collaborators: Another group of people who influence your customers’ decisions are
collaborators (i.e. doctors and pharmacists). The collaborators are more concerned with using
the proper medication for the symptoms and situation and are less likely to be swayed by
advertising. However, these influencers still need to be aware of a brand to recommend it,
and if two brands offer similar relief, they may be more likely to recommend one brand over
another if they are more familiar with it. So, advertising and sales force—especially the
detailers (salespeople whose primary task is to inform clients about new products)—do
influence doctors and pharmacists.
Company: The managers should know if the company is successful, growing, has good
margins, unique, meet customer needs, well known, can charge a premium price, and has
strength in the distribution channels. Related to the product, AllRound has an overall positive
position and image in the marketplace with both customers and collaborators.
6. 2.2 SWOT/TWOS Analysis:
Internal
Factors Strengths (S) Weaknesses (W)
Opportunities (O)
Wide distribution area
Strong Brand Name
Loyal Customers (Brand Loyalty)
Fast Product Transportation
Great Marketing for Allround
Product
Ready/Access Capital
High Market Share
Not enough penetration in
other markets
Slow in Responding to Trend
Shifts
Few/No brands in the “cold”,
“cough”, “allergy” product
space
Threats (T)
Competition
Add other product options
The U.S economy
Established Brand Competition
Strengths: Superior resources and/or skills that can be drawn on to exploit opportunities and
diminish threats
Weaknesses: Deficiencies in resources and/or skills that inhibit the firm’s ability to capture
opportunities or that must be overcome to avoid failure or underperformance.
Opportunities: Environmental (consumer, competitors, channels, economy, technology,
deregulation, etc.) states of being or trends with positive consequences. They provide a
potential new basis for competitive advantage and provide a possibility of improved
performance if pursued.
Threats: Environmental states of being or trends with negative consequences. They may
impede the implementation of strategy, increase the risks of strategy, increase the resources
required, or reduce performance expectations.
External
Factors
7. 2.3 Business Portfolio Analysis:
Description:
According to the graph below, AllRound is considered a Star product and a Cash Cow at the
same time because the marketing and management team is effectively observing and evaluating
its market share.
8. 2.4 Marketing Mix Table:
Product Strategy: For the market segments for Cold, Cough, and Allergy the strategies that
would be the most effective are the scope strategy and the diversification strategy. The
expected results for the scope strategy include: Increased growth, market share, and positive
profits. With effective utilization, AllRound would achieve a monopolistic-like control over
the market and enlarged product/market opportunities. The purpose of using the
diversification strategy is to not only increase sales, profitability, and flexibility but to
develop and introduce new and unfamiliar products to possible customers.
Marketing
Mix Element
Market Segment
Cold
Market Segment
Cough
Market Segment
Allergy
Product
Strategy
Scope Strategy
Diversification
Strategy
Scope Strategy
Price Strategy Economy Pricing Penetration Pricing Psychological Pricing
Promotion
Strategy
Social Media
Point-of-Sale
Promotion and
End-Cap
Marketing
Causes and
Charity
Social Media
Point-of-Sale
Promotion and
End-Cap
Marketing
Causes and Charity
Social Media
Point-of-Sale
Promotion and
End-Cap
Marketing
Causes and
Charity
Place Strategy Intensive Distribution Exclusive Distribution Selective Distribution
9. Price Strategy: Three different price strategies should be used for AllRound’s new products
and they are the: Economy Pricing, Penetration Pricing, and Psychological Pricing. Economy
Pricing is when companies keep prices low and attract a specific segment of the market that
is very price sensitive. Penetration Pricing is a strategy designed to capture market share by
entering the market with a low price relative to the competition to attract buyers. Lastly,
Psychological Pricing is when a product is $1.99 as opposed to $2.00; the customer will most
likely choose the $1.99 product because of the minor distinction in price.
Promotion Strategy: This is how AllRound will promote the new products. The best way for
AllRound to promote the new products is through Social Media, Causes and Charity and
Point-of-Sale Promotion and End-Cap Marketing (basically the selling of a product or
products and promoting items in stores).
Place Strategy: AllRound should use all three of the major place strategies which are
Intensive Distribution, Exclusive Distribution, and Selective Distribution. Intensive
distribution is used commonly to distribute low priced or impulse purchase products.
Exclusive distribution involves limiting distribution to a single outlet. The product is usually
highly priced, and requires the intermediary to place much detail in its sell. Selective
Distribution is when a small number of retail outlets are chosen to distribute the product.
2.5 Components of Competition (Porter):
The Organization: AllRound
10. Threat of New Entrants
Believe
Besthelp
Coughcure
Defogg
Dripstop
Dryup
Effective
End
Extra
Bargaining Power of Suppliers
1st Analgesic
2ndDcngest
3rd Cough Supp
4th Alcohol
5th Antihist
Bargaining Power of Buyers
Mass Merchandise Stores
Grocery Stores
Chain Drug Stores
Convenience Stores
Independent Drug Stores
Threat of Substitute Offerings
Dryup
Coughcure
Defogg
11. 2.6 Products on Markets and Sales of OTC Products:
Company Name Product Sales (millions) Product(s) on Market
Allstar Brands $355 “allround”-4 hour multi-symptom cold liquid
B&B Heath care $286 “believe”-4 hour allergy capsule
“besthelp”-4 hour cold capsule
Curall
Pharmaceuticals
$199 “Coughcure”-4 hour cough liquid
“Coldcure”-4 hour children’s’ cold liquid
Driscol Corporation $255 “Defogg”-4 hour allergy Capsule
“Dripstop”-Cold nasal spray
“Dryup”-4 hour multi-symptom cold capsule
Ethik Incorporated $395 “Effective”-cold nasal spray
“End”-4 hour cough liquid
“Extra”-12 hour cold capsule
2.7 Industry Identification in terms of Number of Sellers:
Oligopoly: For the company AllRound the importance of marketing mix is to promote in
order to achieve the perceived product differences.
12. 2.8 Over the Counter Medicines Industry Regulations:
Max.
Allowed
Analgesic Antihist Dcngest Cough
Supp
Expect Alcohol Description
1000 4 60 30 200 20 (mg/4-hr dose)
Allround 1000 4 60 30 0 20 4-hr multi liquid
Believe 0 4 0 0 0 0 4-hr allergy capsule
Besthelp 0 4 60 0 0 0 4-hr cold capsule
Coughcure 0 0 30 30 0 10 4-hr cough liquid
Defogg 0 4 0 0 0 0 4-hr allergy capsule
Dripstop 0 0 60 0 0 0 Cold spray
Dryup 1000 4 60 0 0 0 4-hr multi capsule
Effective 0 0 60 0 0 0 Cold spray
End 0 0 0 0 200 10 4-hr cough liquid
Extra 0 0 120 0 0 0 12-hr cold capsule
This chart describes in detail what ingredients can be found in the Allround product as well
as its competition and what the products are.
2.9 Sales and Demand Analysis:
13. The charts above simply describe Supply and Demand which is how much product(s) is/are
available and how much of a product(s) that customers and consumers want.
Marketing Budget Break Even (Units)
(Fixed Costs + Total Marketing Expense)/ (SP per unit - Variable Cost per unit)
(62.4 + 42.8 +8)/ (3.49 - 0.5) - 1.79= 87.66
The company would continue to make profits if A competitor has dropped its price by
$0.50 causing the company to consider matching their price cut.
2.9.1 Consumer Analysis:
This graph explains how the awareness, purchases, and satisfaction for AllRound and all of
its competition compare to each other.
Planning Assumption:
The product for AllRound is expected to grow exponentially, not only because of the strong
brand name AllRound currently holds, but because of the introduction of new products that
AllRound has previously not marketed in.
14. 2.9.2 Forecasts:
Sensitivity Analysis
(Fixed Costs + Total Marketing Expense)/ (SP per unit - Variable Cost per unit)
62.4 + 42.8 +8/(3.49 - 1.79)= 66.58 The company would still be making profit if
managers requested an additional $8,000,000 from Senior Management to run an
advertising campaign promoting AllRound.
AllRound will have a positive market share and net profits if they successfully penetrate the new
markets.
15. 3. Objectives
3.1 Marketing Objectives:
Increase Sales
Improve New Product Awareness
Maintain a Strong Brand Name
Keep Loyal Customers While Gaining New Ones
3.2 Program Objectives:
Successfully penetrate new markets
Maintain Brand Name
Gain New Customers
Increase Sales
Improve all Product Awareness
4. Marketing Strategy
4.1 The Strategic-Planning Gap:
16. AllRound is in the integrative growth simply because it is a growth strategy in which a
company increases its sales and profits through backward, forward, or horizontal integration
within its industry. A company may acquire one or more of its suppliers to gain more control or
generate more profits (backward integration). It might acquire some wholesalers or retailers,
especially if they are highly profitable (forward integration). Or finally, it might acquire one or
more competitors through acquisition (horizontal integration)
4.2 Integrative Growth:
The Suppliers are Analgesic, Dcngestrd, Cough Sup, Alcohol, and Antihist. Wholesalers include:
Mass Merchandise Stores, Grocery Stores, Chain Drug Stores, Convenience Stores, nd
Independent Drug Stores. The competitors for AllRound are Dryup, Coughcure, and Defogg.
17. 4.3 Market/Product Focus:
AllRound will continue to produce it’s 4 hour multi-symptom cold liquid because of the
effectiveness and quality. The company will also penetrate new markets and coordinate new
product developments for symptoms the cold liquid does not cover (i.e. Allergy, Cough, etc.)
18. 5. Marketing Programs and Tactics:
To effectively utilize AllRound’s’ marketing programs and tactics the company will apply the
5Cs (explained on page 3)
6. Financial Documents
6.1 Break Even Point-Assignment- Market Share Simulation:
Break-Even Data
Description $ (Millions)
Unit Volume 102.1
Unit Selling Price 3.49
Promotional Allowance 60.4
Cost of Goods Sold 122.6
Unit Variable Cost 1.79
Total Marketing Expenses 42.8
Fixed Costs 62.4
Unit Selling Price: (MSRP X 1- vol. disc %) [5.29 X (1 - 0.34)] = 3.49
Unit Variable Cost: (PA + COGS)/ Units [60.4 + 122.4/102.1]
Total Marketing Expenses: (Promo + Adv + Sales Force + Admin]
Company Break Even Units:
Fixed Costs)/ (SP per unit - Variable Cost per unit)
62.4/3.49 -1.79 = 36.70 AllRound is making Profit because this number is less than the unit
volume
Marketing Budget Break-Even =
(Fixed Costs + Total Marketing Expense)/ (SP per unit - Variable Cost per unit)
62.4 + 42.8/(3.49 - 1.79)= 61.88 AllRound is making profits because the Units sold is more than
the BEP
19. 6.2 Advertisement and Promotion:
AllRound will promote their new products by utilizing various place strategies. The best way for
AllRound to promote the new products is through Social Media, Causes and Charity and Point-
of-Sale Promotion and End-Cap Marketing (basically the selling of a product or products and
promoting items in stores).
= 87.66
20. 6.3 Income Statement:
6.4 Percentage of Budget:
Estimates of the percentage of the budget is distributed directly to retailers and through
wholesalers represent total industry sales of all five firms. As with all market research studies,
some error is to be expected. These values often result from a survey or sampled information that
is subject to some distortion.
7. Monitors and Controls
7.1 Sales Force Decision:
The direct sales force sells directly to retail channels. The indirect sales force engages in
merchandising, supports wholesalers, and influences doctors and pharmacists. Sales force costs
start at about $60,000 per sales person. Training costs are incurred for expanding the sales force
as well as to train replacements for turnover.
21. 8. Contingency Plans
8.1 Alternative Strategies:
Continue to only sale the AllRound 4 hour multi-symptom cold liquid.
Penetrate one market at a time instead of three. (for example: only create a product for
Allergy symptoms and wait for results so the company can appropriately analyze the
feedback.
8.2 Abandonment Points:
There are few reasons AllStar brands will abandon the objectives and those reasons are:
Sales a permanently declining
New product did not effectively penetrate the market
Customer feedback is bad
22. 9. Executive Summary
9.1 MissionStatement: The Customer can count on us to professionally network functional
pharmaceutical products to allow us to exceed customer expectations.
1. Philosophy, Values, & Ethics: The Company of AllRound has a philosophy that promises all
of its customer’s medication at an affordable price while still working efficiently. The company
values its customers greatly and appreciates customer feedback and satisfaction rate.
2. Business Domain: The Business Domain for AllRound is the Pharmaceutical Business.
3. Competitive Advantage: One of the many competitive advantages AllRound has is its
affordable price, Brand Awareness and Brand Satisfaction.
4. Energizing Factor: There are many opportunities for AllRound to grow further into the
pharmaceutical marketplace.
Objectives:
9.2 Marketing Objectives:
Increase Sales
Improve New Product Awareness
Maintain a Strong Brand Name
Keep Loyal Customers While Gaining New Ones
9.3 Program Objectives:
Successfully penetrate new markets
Maintain Brand Name
Gain New Customers
Increase Sales
Improve all Product Awareness
9.4 Strategy:
AllRound is in the integrative growth simply because it is a growth strategy in which a
company increases its sales and profits through backward, forward, or horizontal integration
within its industry.
9.5 Outcome Expectations:
If everything goes according to plan, further penetrating the new markets of cold, allergy, and
cough will be successful because the BEP and financial data support the hypothesis and
AllRound has a strong brand name the customers recognize.