#5 and 6

Period 1 Decisions:

Sales Force Indirect Sales: 30

Advertising decrease to: 17 mil to better align with competitors

Digital Marketing increase to 3.6

Special: Redefine territories based on workload so that Steve can keep his existing relationships and the other employee has a level playing field

Overall, getting a feel for how the system works and what decisions will impact our results. Results for this period where comparative to other teams. Stock price increase from 38.35 to 51.72.

Period 2 Decisions:

Special Decision: Sell the batch for a $50,000 loss. This is the lowest risk option. We don’t want to lose our relationships with our customers because of expired medications which could be a more detrimental loss in the long run.

Brand reformulation option opened in period 2. We decided to drop alcohol ingredient hoping to expand our customer base and market to children. Alcohol causes the drowsiness. By removing it, consumers can take both day and night and it’s safe for children. We can also use this as a marketing opportunity and price increase opportunity

Purchased salesforce report for $20,000 due to retailers complaining of poor salesforce support. The report showed us that our competitors have a similar distribution of direct to indirect sales force but have a much higher volume than we do. We decided to wait until period 3 to make any further changes to the salesforce as we anticipate a change in our formula might require more salesforce

Increase price by $.50 to $5.79. We made a small change, hoping that this will pair with our decision to market the brand as safe for children and alcohol free. Something parents want to spend a few extra cents on.

Created tag line for new brand formulation: Better Choices to Keep You Moving

Created Packaging with our logo and tagline

Stock price increased from 51.72 to 53.05

Period 3 Decisions:

Stock price increased from 53.05 to 55.03

Period 4 Decisions:

Special decision: Decided to conduct clinical studies to show product effect which will allow indirect sales reps to quote a clinically researched case based on Allround allowing physicians and medical professionals to reliably refer their patients to our brand.

Added Line Extension and chose 12 hr multi capsule. We decided on the multi capsule because it was convenient and could target the working adult who needed to make it through the day. Did not choose the childrens cold liquid because we re-branded our product two years ago to appeal to families.

Set price of new line at 5.99. We wanted to make it over 6 but thought it would be more appealing at 5.99.

Discounts:

Chose to provide higher discount for wholesale and large quantity sales

Promotional budget and allocation:

Made these similar to allround but decided on higher busgets for the new line.

Advertising:

Decreased our advertising budget for allround to 10 mil and made allround+ 10 mil. Thought being that the allround brand is established and now that we have two products, they can be advertised together while still advertising the company overall. Chose to put more of the budget into benefits and primary since it is a new line.

Set digital marketing to 5 million and decreased allround to 2 million

Increased direct salesforce within the chain drug stores by 4 due to complaints from our retailers about lack of sales support. Our sales report two years ago indicated that our competitors have a larger salesforce than we do and given, the recurring feedback, we needed to make a change.