1. Allstar: Round 3 & 6
Done by:
Anoud Almutlak
Arwa Alnahdi
Baraa Alafif
Khlood Soma
Mashael Alotaibi

2. Round 3
Period #2

3. Company Overview
 Revenue (M$) 406.2-5.2%
 Gross Margin (M$) 196.5 -5%
 Net Income (M$) 81.3 -15.8%
 Stock Price $41.64
 CGS (M$): 140.7
 Capacity Utilization: 92.2%

5. Market Situation
 Prices increased an average of 2.0% compared to an inflation
rate of 3.2%
 Total advertising spending is up $7.9 million while promotional
spending increased $3.3 million...
 Mass merchandiser sales showed the strongest growth this
period with an increase of 14.1%...
 Retail sales grew by $67.6 million, or 2.8%...

6. Competitors Situation

7. Special Incident: Cannibalization
OPTIONS REASONS
a- 12-hour multi capsule * Decrease sales for our original 4-hour
multi liquid.
* Not attracting new customers ( only
adults).
* Different in time of using.
B- cough formula * Decrease sales for our original 4-hour
multi liquid.
* Not attracting new customers. ( only
adults).
C- children’s liquid cold
medicine
* New target customers. ( Children)
* Not affecting the sale of the original brand.
( Different users)

8. Special: Reformulation
 During this round, we had the choice to either
 Drop Alcohol (1.20)
 switching from cough suppressant to expectorant(1.31)
 Leave the brand as it is (1.31)
Reason: Lowest cost, and we wanted to cut down our costs.

9. Special: Reformulation

10. Decision: Pricing
Before
 MSRP: 5.58
 Prices increased avg 2%
 Inflation 3.2%
After
 Increase price by 2%
 New price: 5.69

11. Report Used: Pricing
• Allround has the fourth highest MSRP therefore we felt okay to
increase the price(due to inflation) because we would still be in
the industry range.

12. Decision: Advertising
Before
 Budget: $20 million
 Ad Agency: BMW (15%)
 Primary: 5%
 Benefits: 45%
 Comparison: 45%
 Reminder: 5%
After
 Budget: $16.0 Million
 Ad Agency: Sully and Rogers
(10%)
 Primary10%
 Benefits45%
 Comparison35%
 Reminder10%

13. Report Used: Advertising
• Highest among competitors, therefore we needed to decrease it
relative to the industry.
• Reason: to decrease costs.

14. Decision: Sales Force
Before
 Mass merchandiser sales
showed the strongest growth
this period with an increase of
14.1%
 Mass Merchandise: 20
 Total Sales Force: 189
After
 Increase SF by increasing
Mass Merchandise
 Opportunity: MM sales growth
 Also, we had the lowest SF in
the industry.
 New MM: 40
 New Total SF: 209

15. Report Used: Sales Force

16. Results
 Revenue (M$) 412.81.6%
 Gross Margin (M$) 209.4 6.6%
 Net Income (M$) 95.2 17.1%
 Stock Price $44.45
 CoGS (M$): 133.2
 Capacity Utilization: 91.8%
CoGs

17.  Customer Satisfaction increased from 57.6% to 63.7%

18.  Growth of sales according to symptoms increased except for
Cough. This increase might be due to the reason of dropping
the alcohol in the formulation.

19. Round 6
Period #5

20. Company Overview
 Revenue (M$) 511.38.7%
 Gross Margin (M$) 259.4 12.6%
 Net Income (M$) 115.3 32%
 Stock Price $63.12
 CGS (M$): 179.7
 Capacity Utilization: 118.6%

21. Company Overview
CGS (M$): 179.7Capacity Utilization: 118.6%

22. Market Situation
 Ethik announced the introduction of End+ this period...
 Prices increased an average of 3.2% compared to an inflation
rate of 3.6%
 Total advertising spending is up $13.4 million
while promotional spending increased $7.1 million...
 Mass merchandiser sales showed the strongest growth this
period with an increase of 14.6%...
 Retail sales grew by $255.1 million, or 9.4%...

23. Competitors Situation

24. Special: Creative Marketing
 Fund street artists in major cities to act out a "commercial”
($500,000)
 Place your product in a movie expected to be popular with
young adults ($100,000)
 Sponsor a racecar driver ($2 million)
 Advertise in a crossword puzzle ($50,000)
 Run an ad contest ($1 million)

25. Reasons
Option 1 * Not related to our product.
* Not helpful.
Option 2 * Focusing on a specific group of
people.
Option 3 * To costly.
Option 4 * Not being used or played anymore
* People may don’t have time
Option 5 * Seems the most reasonable.
*Attract customers to participate which
will create a relationship between
buyers and the firm.
* Activate the website.
* Knowing what customers like and
prefer.

26. Decision: Promotion
Before
 Lack of consumer promotion
for all round (market update)
 Consumer promotion:
$ 1.65 m
After
 Consumer promotions:
$ 2.5 m

27. Decision: Pricing
Before
 Price of Allround : $ 5.53
 Price of Allround+: $ 5
After
 Price of Allround: $ 5
 Price of Allround+: $ 5.7
Reason:
Decreasing Allround: To encourage sales
Increasing Allround+: Already beimg advertised and tried.

29. Decision: Sales Force
 Reallocate our sales force based on benchmarking ( curall company):
Direct (#SF) Indirect (#SF)
Indep Drugstores 30 Wholesaler Support 36
Chain Drugstores 66 Merchandisers 24
Grocery Stores 93 Detailers 24
Convenience Stores 6
Mass Merch 30 Total sales force 309

30. Report used: Sales Force
The sales force report showed that we Ranked the 4th (
insufficient allocation ).

31. Decision: Advertising
Before:
 Advertising budget: $ 8 m
 Advertising options
percentages:
-Reminder: 10%
-Comparison: 35%
After:
 Advertising budget: $ 5 m
 Advertising options
percentages:
-Reminder: 15%
-Comparison: 30%
Reason: * Not a new product any more, Already being advertised a lot.
* Increase: To remind and attract.
* Decrease: Not a new product to be compared to others.

32. Results