Assasignmnet

ALLSTAR BRANDS interoffice memorandum

to: | DR. WILLIAM QUALLS—VICE PRESIDENT OF MARKETING ALLSTAR BRANDS |

from: | |

subject: | ALLROUND MANAGEMENT REPORT, PERIODS 4-10 |

date: | October 1, 2015 |

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Performance Overview

After first three periods decision-making, brand awareness of Allround increased from 74.1precent to 84.6 percent and consumer satisfaction increased from 58.3 percent to 65 percent. Also, there are a noticeable growth in sales revenue, average shelf space and market share. (Table1)However, Allround moved from Star to Cash Cow in the portfolio graph. In addition, compared to other four companies, although Allstar generated highest revenues in last three periods, cost of goods sold was significant higher than that of other companies, which led to the fact that gross profit margin of Allstar was not satisfactory enough.

General Marketing Strategy

Initially, we used high promotion allowance rate strategy to stimulate the sales, especially in large grocery stores, mass merchandisers and chain drugstores. Besides, we kept a moderate price （Table2）which was not increased in accordance with inflation rate in order to promote actual purchase rate and enlarge our market share. In terms of sales force allocation, we assigned more than a half of the sales force in indirect segment and made adjustments based on the sales size and growth rate in different channels. As for line extension, we chose child 4hr cold liquid.

In the following six periods, we decided to keep promotion allowance rate higher than those of competitors, gradually decrease the percentage of Allround’s advertising budget and increase the advertising budget of Allround+. Besides, it has been proven that penetration price strategy of Allround is successful, we are going to use the same price strategy in Allround+. As for the sales force deployment, we will slightly decrease the percentage of sales force allocated in indirect channel because units sales in indirect...