marketting

DECISION YEAR 0

-According to the Dashboard, in market update (info° related to the company and its environment) it’s written that prices increased an average of 2.9% compared to an inflation rate of 3.1% -> we can therefore increase our prices

-Advertising part: We know that advertising is a very important. We spent $25.3 million on Allround advertising campaign last year. But knowing that our company is well established a low quality advertising will not affect the brand we can decreased our budget in adversting by changing our agency from BMW (which quality but charges 15% commission on media placements) to LLC agency which is low price charges 5% on media placement). We know that it shouldn’t impact the consumer behavior.

-We are currently spending $25.3 million and our competitors 23 -> so we can decrease consequently.

-This give us the opportunity to allocate more of our resources into other fields to such as Digital advertising which overall increases company promotion.

-We know our digital advertising strategy sometimes get neglected, however we plan to focus more on that area by increasing the budget and trying a real department.

-According to the Dashboard (market update) Mass merchandisers sales showed the strongest growth this period with an increase of 6.4% -> we have to increase our input into mass merchandiser as they have the strongest growth in the period.

Increase Mass merchandiser (currently 26 -> 32)

-We can decrease our budget in Convenienve which has a low growth rate and where we already are the company that spend the highest budget ($36.7) -> decrease to $31 (just above Besthelp).

-We are not going to change Chain drugstores because the consumers are used to buy products there more often than elsewhere. But can can reduce Indep drugstores because according to the shoppinh habits survey consumers don’t buy products in indep drugstore (to 9) often. Decrease.

-We can also increase the Gorcery channel which represents the 2nd highest growth within the market.

-We also have to focus on retail sales, because they grew by $62.7 million.

These two channels would hep us to be more present on the market.

-According to the survey about symptoms reported: Aches, Chest congestion, and cough -> need to focus on these 3.

-For now we keep our intial product Allround which is a 4hr multi symptom relief and one of the most effective for cold symptoms.

-On the market share based manufacturer sales: we have 41.3% of the share in the cold market -> our direct competitor is Besthel who presently has 28.9% of the shares -> focus on this competitor.

Promotion: We can increase our cons and trade promotion: currently $8.4 to $10.

We plan to increase our promotion allowance budget because we have one of the lowest budget (14%), increase to 15% as Besthelp who is our direct competitor.

-coupons : digital too.

-Increase in volume discount for 2500+ to move the largest group of consumers into a larger purchase quantity category to 36.5%.

-Pricing: -Allround DO NOT SUFFER OF HIGHER PRICES -> effectiveness, high recognition and loyalt= can have high prices. We can afford to increase our prices with no risk of losing our consumers -> $5.48 (still under Coughcure).

-We have the best Shelf Space –-> don’t change it for now.

-We Have to focus on Cold (symptoms) because our competitors are more often recommended than we are. And we can also concentrate on Cough.

-Effectiveness is the most important criteria to the consumers -> focus on this criteria.

-We are the 1st in satisfaction, purchase intentions and brand purchased, brand awareness, brand trials.

-Consumers also perceive our brand as the top company for Aches, Chest Cong and coughing -> which is good for us because these are the most important symptoms.

We won’t need to buy consumers surveys -> focus more in market surveys.

NEXT DECISION when introducing the new product -> add trial size in decision promotion = allow consumers to try the product.

DECISION YEAR 1:

Sales Force (Indep Drugstores & Wholesalers…):

-Convenience stores sales showed strongest growth -> we can focus on this area

-Retail sales grew by 139.1 million or 6.2 % -> still focus on this too

-Increase indep drugstores to 6% (average market). We were at 3.7% and the highest is 10%. We are the least.

-Increase convenience store to 2.1% because we are the least with 1.6%

-Decrease a little bit merchandisers to 10.5 % (we are the 1st and the 2nd are at 11.2%).

-Increase detailers to 9% (we are currently at 8.6% and the competitors are between 6.5 and 12.1)

= Increase indirect sales.

-According to the consumer shopping survey:

Consumers buy cough products more often in Grocery store > Chain drugstore> > Mass merchandisers >Indep drugstore >convenience store

Brand (change the product):

-We chose to reformulate our product and drop alcohol -> and thus focus on young families and children.

Pricing & volume discount:

-inflation is going to increase so we better don’t change our prices that are already high compare to our competitors.

-We are already high

-We can decrease our price in Mass merchandisers to $4.20 and overall because we are perceived at high prices.

-Consumers are sensitive to pricing -> so we are going to lower the price.

Advertising & symptoms & msg:

-advertising exp has to be at least at $5.5 billion (average on the market)

-We can decrease our advertising expenses to $20 dollars -> still be the 1st one (to compare Besthelp spend 15.5).

-Focus Aches Chest congestion Coughing // The less important is allergy symptoms

-Cold has increased by 6.8% and Nasal Spray 25.6% so it’s going to be an important product in the future in the overall market

-We can increase our benefits in the msg -> to 11%. And decrease primary to 9%.

Because the 1st criteria decision for consumers is effectiveness.

Promotion (Allowance & consumer promotion for Allround):

-Increase promotion spending at least up to $6.3 million

-Increase our Allowance to 15.5% (Besthelp is at 15.8) and we are in the average.

-Decrease Co-op adv by 100$ (so to 1,600) and increase our Point of Purchase to $1,900.

-Put yes on trial Size

-Increase grocery stores and chain drugstores according to shopping habits

Digital marketing:

-Increase

Special: sell the back to a jobber at a loss:

Consumer surveys report:

-Effectiveness is the 1st criteria > Price > side effect > Form & Duration

-We decrease overall in satisfaction, purchase intentions… We have to focus on the consumers.

DECISION YEAR 2:

Sales Force (Indep Drugstores & Wholesalers…):

-Indep drugstore have been struggling to compete with chain in the OTC market -> focus on chains.

-Mass merchandisers sales showed the strongest growth this period (increase of 14.4%)-> focus on mass merchandisers.

-Retail sales grew by 3.5% -> Focus on retails sales

-The jobber who bought our expiring product found buyers outside our normal channels of distribution -> focus on our other channels of distribution.

According to the sales force survey:

-Ethik is the 1st one and focus on Chain drugstore, Grocery stores (Direct) and in Indirect: Merchandisers & Detailers.

Brand:

-drop alcohol is well perceived

Pricing & volume discount:

-Prices increased an average of 2.2% compared to an inflation rate of 3.2%

-Our competitors (coughcure, End & Effective) have higher prices than us. But Besthep lower even if the brand in increasing It prices. So we can increase slighlty.

Advertising & symptoms & msg:

-Total advertising spending is down= every competitors decrease their advertising expenses -> continue to decrease a bit.

-According to the company messages we should change the benefits we are targeting and promoting

-Symptoms: Aches >Chest congestion & Coughing > Nasal congestion

-Market/Manufacturer sales: Cold > Cough >Spray > Allergy

-According to advertising: We can continue reducing our spending to 18$ but not too much because Besthelp is increasing a little bit.

And we can increase in the message reminder (43) and reduce primary and compare a bit.

Promotion (Allowance & consumer promotion for Allround):

-According to the promotion survey: we can increase promotion allowance to 16.5%.

Decrease co-op adv to 1,600 (such as Besthelp).

-According to the channels sales: the most important are Grocery stores > Chain drugstores > Indep drugstore

Our spending are much more high than our competitors. We can decrease indep drugstore & convenience store, but increase chain drugstore and grocery store & mass merchandiser which is an increasing channel.

-According to the shopping habits report : Grocery stores > Chain drugstores

Digital marketing:

-Increase digital marketing a bit.

Special:

-We choose to take the 12hr Multi symptoms capsule -> easier to take, don’t need to take it every 4hr.

Consumer surveys report:

-Decision criteria:

Effectiveness > Price > Side effects

In all the factors (purchase intention, brand awareness, satisfaction…) we are the best ones.

DON’T UNDERSTAND CONJOINT ANALYSIS

In the test analysis:

-Don’t higher the price too much

DECISION YEAR 3:

Sales Force (Indep Drugstores & Wholesalers…):

-Mass merchandisers sales showed the strongest growth this period (15.2%)-> focus on this

-Retail sales grew by 6.4%

-We are running 6.5% over capacity -> reduce expenses in sales force

-B&B are the 1st one is sales force graph their nb are:

Indep drug 17 Grocery store 91 Mass merchandisers 31

Chain Drug 52 Convenience stores 11 Wholesaler 28

Merchandisers 19 Detailers 35

-Channel sales: Grocery store > Chain drugstores > Indep drug > Mass merch > Conv store

But Mass merchandisers know the highest growth even if it is the last channels (so focus on mass too because it will continue to increase in the future).

-We spend too much money in retail sales: 593$ total compare to 412 Besthelp. So we have to focus on the principal but decrease in general

Brand:

-Introduce line extension -> we have to because Besthelp introduced BesthelpPlus.

-The choice of a 12Hr capsule as a line extension makes sense because many users want to be able to buy capsules that are easy to carry around, and the 12hr relief is a plus -> keep this extension line.

Pricing & volume discount:

-Prices increased an average of 0.8% compared to an inflation rate of 3.7% ->increase the prices

-We can increase the prices slightly because the competitors are all increasing -> we are the 3rd.

Advertising & symptoms & msg:

-On the market, total adv spending = 10.8$ & promotional spending increased by 0.6$.

-Symptoms reported: Aches>Chest congestion >Coughing > Nasal Congestion

-We are running over budget -> according to the percent of our budget total used we can decrease advertising.

-Highest market growth : Cold >Cough

Promotion (Allowance & consumer promotion for Allround):

-Consumer shopping habits: Grocery store >Chain drugstores > Indep drug

-We are good in promotion allowance (exactly same position as Besthep). So we can increase slightly in the imp channels but decrease in the other.

Digital marketing:

Special:

-Take special decision

Consumer surveys report:

-We are the 1st in purchase intention but careful because besthelp introduced a new line which will increase the purchase.

-Brand purchased: us

-Satisfaction: still 1st but the satisfaction decreased a bit

-Brand awareness: 1st one

-Decision criteria: Effectiveness > Price > Side effects > Form > Duration Change the formulation??

-Brand perception: Good in global (Aches, Nasal Congestion, Chest congestion, Runny Nose, Coughing) but competition in Allergy symptoms

In analysis if I increase the price to 5.49 and decrease discount to 34.5 -> increase margin and allowance.

Decision Year 4:

DECISION YEAR 5:

Sales Force (Indep Drugstores & Wholesalers…):

-Mass merchandisers sales showed the strongest growth this period with an increase of 13.1%

-Retail sales grew by 8.2%

-We are 3rd in sales force -> We have to copy B&B and Ethik:

Increase around 17 Indep drug

Keep our chain drug around 55

Keep grocery stores around 98

Increase Convenience stores around 7

Decrease Mass merchandisers around 33

In Indirect: keep wholesaler around 27

Increase merchandisers around 20

Increase Detailers around 34

KNOWING THAT THE MOST IMPORTANT IN SHOPPING HABITS ARE:

Grocery Store > Chain drugstores > Indep drug & Mass merchandiser

Brand:

Pricing & volume discount:

-Price increased an average of 3.4% compared to an inflation rate of 3.6% -> keep the same prices.

-in Dashboard it’s written “good value” so I suppose it’s a good price we have -> buy the pricing report????

Advertising & symptoms & msg:

-Total advertising spending is up to 16.6 million while promotional spending increased by 11.5 million.

-BestHelp is at 19.8 and Besthelp Plus is at 4.9 so we can increase our spending in AllroundPlus and keep around the same in Allround. Especially since our agency is a low cost (LLC).

Symptoms reported:

-Aches>Chest Congestion & Coughing

-Cold > Cough > Allery & Spray

About the message:

For Allround we have to increase reminder to 48% and decrease compare to 35% & primary to 6%.

For Allround Plus we have to focus on Primary 43% then benefits 30% and ten compare 17% ad reminder 10%.

Promotion (Allowance & consumer promotion for Allround):

-Promotion allowance for AllroundPlus is inconsistent across channels. We have to check that.

-IN ALLROUND PLUS we have to increase our average channels (indep drug, chain drug, grocery, convenience, mass merchandisers)

-Believe is very well rating and has 18.9 promotion allowance, 1,000 co-op, 3,000 point of Purchase (so for Allround we can copy this) -> we have to put at least 3,000 to POP.

-BesthelpPlus is also well rating and has 18.9% promo allowance, 0 Co Op adv, 580 Point of Purchase, No coupon amount and no coupon type (so for Allround Plus we can copy this)

KNOWING THAT THE MOST IMPORTANT IN SHOPPING HABITS ARE:

Grocery Store > Chain drugstores > Indep drug & Mass merchandiser

Digital marketing:

-Compare to us, Besthelp is spending 2.2$ and BesthelpPlus 0.6 so we can increase our Allround advertising and decrease slightly our AllroundPlus advertising

Special:

-The changes we have made to detailing (especially the clinical studies) are very helpful for physicians and pharmacists about our product.

-For the introduction of a new product we have an increased capacity of 40 million

-BE CAREFUL: CONSUMERS COULDN’T FIND OUR ALLROUND PLUS PRODUCT -> modify shelf space

We have 21.5 remaining budget that we can spend so we don’t have to hesitate to spend money in advertising or other.

Also we have to increase prices or reduce average discount or increase unit sold to continue increasing our margin because if not they are going to decrease according to the projections.

YEAR 6:

Sales Force (Indep Drugstores & Wholesalers…):

-Convenience stores sales decreased by 9.5%

-Retail sales grew by 102 million or 3.5 %

Brand:

-Introduction of 4hr allergy

-For the introduction of a new product we have an increased capacity of 40 million

Pricing & volume discount:

Price increased an average of 4.2% compared to an inflation rate of 3.2% -> increase prices in Allround Plus to 5.99 & Allround to 5.89

Advertising & symptoms & msg:

-Total advertising spending is down $4.2 million while promotional spending decreased by 8.9 million -> Decrease both

-Modify the benefits we are promoting for Allround Plus:

For Allround Plus benefits: nasal congestion, aches, allergy symptoms, runny nose

-Symptoms reported are the same: Aches>Chest congestion & Coughing >Nasal Congestion > Runny Nose > Allergy symptoms

-Segment = Cold >Cough> Allergy & Spray

Promotion (Allowance & consumer promotion for Allround):

-Promotion allowance for Allround and Allround plus across channels is inconsistent

-We sell the most in Grocery stores > Chain drug > Indep drug > Mass merch >Convenience store

=WE HAVE TO DECREASE EVERYWHERE WE INCREASED TOO MUCH IN ALLROUND to 15%

But we can still increase in Allround Plus everywhere focusing on the most important channels, increase allow to 19%, Co op Adv to 1,000 and POP 2,500.

For Allround: decrease POP to 1,800 and increase Co-op Adv to 1,800

Digital marketing:

-Keep increasing slightly for both

Special:

YEAR 7:

WE ARE RUNNING OVER CAPACITY

Sales Force (Indep Drugstores & Wholesalers…):

-Grocery stores sales showed the strongest growth this period (Increased 7.9%).

-Retail grew by 5.1%

-Direct sales force allocation may not correspond to retail sales in channels.

-Support wholesalers and retailers in their efforts

-Allright: couldn’t find the product.

-Grocery store > Chain > Indep >Mass Mer > convenience stores

Brand:

-We announced the introduction of Allright this period

Pricing & volume discount:

-Economist project higher inflation while growth remains strong

-Prices increased an average of 1.2% compared to an inflation rate of 3.8%

-Allright price is too low check product pricing decision : at least 5.99$

Advertising & symptoms & msg:

-Total advertising spending is up to 15.5 million while promotion spending increased by 11.5

-We are overspending on advertising for AllroundPlus decrease to 5.

-Benefits we are promoting in Allround has to change.

Benefits we are promotion in Allround Plus advertising have to change

-Brand we are targeting in our comparison advertising may not be the best choice for AllroundPlus (has to be Besthelp)

-Symptoms reported: Aches> Chest > Cough >Nasal Congestion

-Market share based: Cold > Cold & Allergy & Spray

Promotion (Allowance & consumer promotion for Allround):

-Promotion allowance for Allround & AllroundPlus & Allright across channels is inconsistent

-Support wholesalers and retailers in their effort for Allround, AllroundPlus and Allright See promotion report and promotion trade decisions =

decrease co op adv and POP

-We are overspending on promotion for AllroundPlus (check market promotion report to compare).

Digital marketing:

Special:

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A competitor is charging us with illegal price discrimination and legal counsel has had to defend our decision -> cost 500 000 in legal fees.